Closer to 48% wage hike in LA

LOS ANGELES – The Los Angeles City Council has approved a minimum wage increase for workers in the tourism industry, requiring hotels with more than 60 rooms to pay their workers $30 per hour by 2028. That translates to a 48% hike in the minimum wage for hotel employees over three years.

In addition, hotels would be required to provide $8.35 per hour for their workers’ healthcare by July 2026. Because the vote was not unanimous, a second vote will be required next week.

Rosanna Maietta, president and CEO of the American Hotel & Lodging Association, put out a statement saying, “The City Council delivered a blow to Los Angeles today. Time after time, the Council ignored the dire warnings from top city officials and business leaders who stressed that this is not the time to pass an extreme ordinance that will kill jobs and hurt the tourism industry. Instead, the City Council elected to jeopardize economic recovery and stability by advancing policies that will lead to hotel closures and thousands of layoffs. The impact of the vote will sadly be felt both swiftly and painfully by hotel owners, their employees, and the city itself.”

Jackie Filla, president and chief executive of the Hotel Association of Los Angeles, told the Los Angeles Times that she believes hotels will close restaurants or other small businesses on their premises — and in some cases, shut down entirely.

In the short term, she said, some will tear up their “room block” agreements, which set aside rooms for the 2028 Olympic and Paralympic Games.

“I don’t think anybody wants to do this,” Filla said. “Hotels are excited to host guests. They’re excited to be participating in the Olympics. But they can’t go into it losing money.”