Los Angeles officials have approved a dramatic minimum wage increase for hotel and airport workers that will reach $30 per hour by 2028, setting off a fierce debate about worker rights versus business sustainability in one of America’s largest tourism markets.
At a Glance
- The LA City Council voted 12-3 to increase tourism worker wages to $22.50 in 2025, eventually reaching $30 by 2028
- The measure affects hotels with more than 60 rooms and businesses at Los Angeles International Airport
- Workers will also receive increased healthcare benefits of $8.35 per hour by 2026
- Business leaders warn of potential layoffs, service cuts, and reduced investment in LA’s tourism sector
- The measure comes as Los Angeles prepares to host the 2028 Summer Olympic Games
Council Approves “Olympic Wage” for Tourism Workers
The Los Angeles City Council has taken a bold step toward what supporters call an “Olympic wage” for tourism workers, approving a minimum wage increase that will reach $30 per hour by 2028. The 12-3 vote directs the city attorney to draft ordinance language that would significantly boost pay for workers at hotels with more than 60 rooms and businesses operating at Los Angeles International Airport. The measure represents a 48% wage increase for hotel employees and a 56% increase for airport workers from current rates.
The wage increase will be implemented in phases, starting with a jump to $22.50 in July 2024. Additionally, employers will be required to provide healthcare benefits worth $8.35 per hour by July 2026. The timing aligns with Los Angeles hosting the 2028 Summer Olympic and Paralympic Games, which proponents argue should bring economic benefits to workers as well as businesses.
L.A. council backs $30 minimum wage for tourism workers, despite warnings – Los Angeles Times https://t.co/wum9JLyAd0
— Hector Becerra (@hbecerraLATimes) May 15, 2025
Labor Unions Celebrate Victory
The wage increase represents a major victory for labor organizations like Unite Here Local 11 and United Service Workers West, which have been advocating for better pay and benefits for tourism industry workers. Labor advocates argue the increase is necessary for workers to afford housing and basic necessities in one of America’s most expensive cities. The measure is expected to benefit over 40% of airport workers and more than 60% of hotel workers throughout Los Angeles.
“It’s been way too long, but finally, today, this building is working for the people, not the corporations,” said council member Soto-Martínez, a supporter of the measure.
During the council meeting, numerous workers testified about their financial struggles and the need for higher wages to keep pace with the region’s high cost of living. Councilmember Ysabel Jurado, who supported the measure, argued that the economic benefits would extend beyond the workers themselves: “When we support low-wage workers, they can contribute to our economy and bolster the city.”
Bravo, LA City Council!
Thanks to you, there’ll be many unemployed hotel workers and a lot of “self check in” kiosks and robot room service attendants!
🤦♀️ https://t.co/v2fRwcFAGE pic.twitter.com/A6TxBfttao
— Houman David Hemmati, MD, PhD (@houmanhemmati) May 15, 2025
Business Leaders Warn of Economic Consequences
Opposition to the wage increase has been vocal and substantial, with business leaders and tourism industry representatives warning of potentially severe economic consequences. The current hotel minimum wage in Los Angeles is $20.32 per hour, while LAX private-sector employees earn $25.23 per hour including healthcare payments. Critics argue that nearly doubling these rates over just a few years will force businesses to cut jobs, reduce operations, or avoid investing in Los Angeles altogether.
“We are right now facing 1,600 imminent layoffs because the revenue is just not matching our expenditures. The same will happen in the private sector,” warned Rodriguez, one of the council members who voted against the measure.
The concerns come at a particularly challenging time for Los Angeles tourism. International travel to the city has not fully recovered from pandemic-era declines, and industry experts warn that higher operational costs could further hamper recovery efforts. “The 2025 outlook is not encouraging,” noted Burke, representing tourism interests. Some council members who opposed the measure warned it could “take an ax to the local economy” and potentially harm the very workers it aims to help by eliminating jobs.
Looking Ahead to Implementation
While the council vote represents a significant step forward for the wage increase, the measure still requires a second council vote after the city attorney drafts the formal ordinance. The council has requested annual assessments of the wage impact and a report on alternative policy strategies for businesses leasing space at hotels, suggesting some awareness of the potential economic disruption. These assessments will be crucial in evaluating whether the wage increases deliver the promised benefits to workers without triggering the job losses predicted by opponents.
The wage increase comes amid a broader trend of worker rights advances in Los Angeles, including the recent implementation of a $20 minimum wage for fast-food workers under Assembly Bill 1228. As Los Angeles prepares for the international spotlight of the 2028 Olympics, the debate over fair wages versus business sustainability will likely continue to shape the city’s economic landscape for years to come.
