In a bold move aimed at helping workers keep pace with the city’s high cost of living, Los Angeles passed an ordinance raising the minimum wage for hotel and airport workers to $30/hour by 2028. But the hotel industry is fighting back—and the stakes are high for both jobs and worker rights.
This is more than a local policy fight. It’s a battle over the future of labor in one of the world’s biggest tourist economies, with consequences that may echo across California and beyond.
What the Ordinance Does
Passed by the Los Angeles City Council in May 2025, the new law:
- Raises the minimum wage for workers at hotels with 60+ rooms and for LAX workers
- Begins at $25/hour in 2026, increasing to $27.50 in 2027, and $30/hour in 2028
- Includes healthcare benefit requirements or compensation if not provided
The proposal, known informally as the “Olympic Wage,” is tied to the city’s preparation for the 2026 World Cup and the 2028 Summer Olympics—two events expected to generate billions in tourism revenue.
Employers Push Back Hard
The hotel industry is mounting an aggressive campaign to overturn the ordinance via referendum, arguing that:
- The wage hike is financially unsustainable
- It will cause mass layoffs, closures, and delays in development
- It may jeopardize LA’s ability to host Olympic visitors
A coalition of hotel and tourism groups claims to have collected over 140,000 signatures, suspending the law until voters weigh in on the June 2026 ballot.
Lessons from Fast Food: 18,000 Jobs Lost
Critics of the hospitality wage hike point to a recent warning sign: California’s new $20 minimum wage for fast food workers, which took effect in April 2025.
A report released in July by the Employment Policies Institute found that:
“Fast food chains in California have cut approximately 18,000 jobs since the $20 minimum wage was enacted.”
Many franchises are turning to automation, shrinking staff, or closing entirely. The concern is that the hospitality industry could see similar job losses—or worse—if the $30/hour requirement is upheld.
LA Hospitality Already on Shaky Ground
Even before this ordinance:
- Production and tourism jobs were leaving LA for states with lower labor costs and more favorable tax credits (Georgia, New Mexico, Louisiana)
- Smaller hotels struggled to recover from pandemic-era losses
- Developers delayed or canceled projects due to regulatory uncertainty
Now, hotel owners warn that the new wage law may be the tipping point—putting thousands of union and non-union jobs at risk.
Union Response: A Fight for Fairness
UNITE HERE Local 11, the hospitality workers’ union, led the campaign for the wage hike, arguing that:
- Hotel and airport workers are the backbone of the city’s tourism economy
- Many live in poverty, despite full-time work
- Rising housing, transportation, and food costs demand a living wage
The union has also accused hotel industry canvassers of using misleading and intimidating tactics during the referendum campaign.
Economic Tension: Rights vs. Reality
This conflict reflects a growing divide in California’s labor landscape:
| Workers Need | Employers Warn |
|---|---|
| Living wages that match housing and inflation costs | Layoffs, closures, and increased costs for consumers |
| Protection during massive events like the Olympics | Reduced hotel capacity and investor flight |
| Stability after years of COVID and strikes | Disincentives for business expansion and hiring |
What Workers Should Watch For
If you work in LA’s hotel or airport industries, here’s what you need to keep an eye on:
- The referendum status – If the ballot initiative qualifies, the ordinance is paused until at least June 2026
- Your employer’s response – Some may reduce hours, outsource, or change job classifications to avoid coverage
- Severance and WARN rights – If layoffs happen, you may be entitled to 60 days’ notice or back pay under the California WARN Act
Know Your Rights — Don’t Sign Away Protections
If you are laid off or offered a severance package:
- Don’t sign anything without legal review
- Many employers include non-disparagement, non-disclosure, and waiver of legal claims
- You may have leverage to negotiate better terms, or even challenge your termination
At Employees First Labor Law, we’ve helped thousands of California workers hold employers accountable for retaliation, wage violations, and illegal terminations.
Contact Us Today
We represent employees who are ready to fight back. Call now or schedule a confidential consultation.
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