Final approval given for wage increase for LA hotel, airport workers

PREVIOUS COVERAGE: LA hotel, airport employees one step closer to $30 an hour wage

The LA City Council gave preliminary approval to an increase in the minimum wage for hotel and airport workers -- reaching $30 an hour by 2028.

LOS ANGELES - The Los Angeles City Council gave final approval to a new ordinance that will significantly raise the minimum wage for hotel and airport workers in the city. 

What we know:

The council gave initial approval to the measure earlier this month on a 12-3 vote. The final vote Friday was 8-3, with Monica Rodriguez, Traci Park and John Lee dissenting, and members Katy Yaroslavsky, Nithya Raman, Adrin Nazarian and Imelda Padilla absent.

Under the proposed changes, hotel and airport employees will earn $22.50 an hour starting in July, with subsequent annual increases of $2.50 for three years. 

This will lead to workers earning $25 an hour by July 2026, $27.50 an hour by July 2027, and $30 an hour by July 2028. Additionally, a new $8.35 per hour healthcare payment will be implemented starting in July 2026. 

PREVIOUS COVERAGE: Wage increase for LA tourism workers gets preliminary approval

These policy changes will impact hotels with more than 60 rooms and private companies at Los Angeles International Airport, including airlines and concessions.

The city will also establish a public housekeeping training requirement of no less than six hours for hotel workers, covering topics such as worker rights, employer responsibilities, and identifying and responding to human trafficking or violent conduct.

Timeline:

• 2023: Councilman Curren Price initiated the proposal for the minimum wage increase.
• Early May 2025: The Los Angeles City Council gave initial approval to the measure with a 12-3 vote, authorizing updates to the city's Living Wage and Hotel Workers Minimum Wage ordinances.
• July 2025: Hotel and airport employees are expected to begin receiving $22.50 an hour.
• July 2026: Workers are expected to earn $25 an hour, and a new $8.35 per hour healthcare payment will begin.
• July 2027: Workers are expected to earn $27.50 an hour.
• July 2028: Workers are expected to reach $30 an hour.

What they're saying:

Councilman Curren Price, who initiated the proposal, emphasized the importance of the policy for workers: "For years, our hotel and airport workers have done the heavy lifting -- welcoming millions, keeping L.A. moving and powering the city's growth. This policy is about respect, recognition, and fair pay for the workers who've always been essential to L.A.'s success."

Carlos Singer, chief policy officer for the Los Angeles Area Chamber of Commerce, expressed strong concerns: "It is deeply troubling that an idea as unprincipled as this has gone on this far in our legislative process."

Mark Davis, president and chief executive of Sun Hill Properties Inc., which manages the Hilton Los Angeles Universal City Hotel, warned of potential consequences for development: "Our board was very adamant that if [council members] go forward with this nonsense, that it's dead. They're going to move the project somewhere else."

Kurt Petersen, co-president of Unite Here Local 11, a union supporting the measure, celebrated the potential impact: "Tourism workers have once again made history by winning the highest minimum wage in the nation! The Olympic and Paralympic Wage is the first step to ensure these mega events benefit hard working families and not just bosses and billionaires."

The other side:

While proponents argue the wage increase will benefit workers and the economy, hoteliers and airport concessionaires have voiced significant opposition. They contend that the increased labor costs could force some businesses to close, particularly at a challenging time for the tourism industry. 

Davis specifically noted that a planned $250 million expansion of the Hilton Los Angeles Universal City Hotel, which would add over 300 hotel rooms for the Olympics, could be canceled if the wage increase is finalized.