The Los Angeles City Council has voted for a second and final time to approve a wage increase for tourism sector workers, including those at large hotels and Los Angeles International Airport (LAX). The ordinance passed 12-3 and will gradually raise the minimum wage to $30 an hour by July 2028. A second vote was required after an initial vote on May 14 fell short of unanimous support. The measure now heads to Mayor Karen Bass for final approval.
The measure requires hotels with more than 60 rooms and airport contractors to raise wages to $30 per hour by 2028. This represents a 48 percent increase for hotel workers and a 56 percent increase for airport workers over three years. Additionally, affected employers must provide $8.35 per hour in healthcare benefits by July 2026.
Rodriguez warned that the proposal could lead to job losses. “We are right now facing 1,600 imminent layoffs because the revenue is just not matching our expenditures,” she said, referring to staffing cuts under consideration at City Hall. “The same will happen in the private sector.”
Proponents, including labor union Unite Here Local 11 and the Service Employees International Union-United Service Workers West, argued the measure was necessary to address rising living costs and ensure workers share in the economic impact of the 2028 Olympics.
Union leaders referred to the proposal as an “Olympic wage” and cited past instances where wage increases were followed by continued economic growth. “People with more money in their pockets — they spend it,” said Jessica Durrum of the Los Angeles Alliance for a New Economy.
Business leaders and hotel operators expressed concerns about the long-term impact. Jackie Filla, president of the Hotel Association of Los Angeles, said the mandate may lead hotels to close on-site restaurants or cancel block bookings reserved for the 2028 Olympic Games.
Adam Burke, CEO of the Los Angeles Tourism and Convention Board, said the travel outlook for 2025 is already uncertain. He noted several countries, including Canada, have issued travel advisories for the U.S.
The current minimum wage for hotel workers in L.A. is $20.32 per hour. For private-sector workers at LAX, it stands at $25.23, including required healthcare contributions. The citywide minimum wage is $17.28.
