Citing state data that shows the city lost 11,000 hotel jobs in 2024 despite a growing population, the anti-union lobbying group Center for Union Facts sponsored a full-page ad pleading with the Los Angeles City Council to avoid enacting a $30 hotel minimum wage.
Hotels with 60 or more guest rooms and concessionaires at Los Angeles International Airport with more than 50 employees would be subject to the $30 minimum wage. In addition, employees at covered hotels would receive an additional health benefit payment of $8.35 per hour, which could be redeemed for cash wages for employees with separate healthcare, and concessionaires at covered LAX would receive $5.95 per hour.
The minimum pay at LAX is currently $19.28 per hour, whereas the minimum salary at the affected hotels is $20.32 per hour. The minimum wage in the city of Los Angeles is $17.28 per hour.
On July 1, 2025, the benefits payments and initial wage increase to $22.50 per hour would fully take effect; on July 1, 2028, the hourly salary would increase to $30.
“The proposed ordinance calls for a dramatic increase in hotel wages within 60 days of adoption. Increasing hourly wages to $24.40 with an additional $8.35 for health benefits would result in a 69% increase in payroll in just two months,” wrote the Hotel Association of Los Angeles in opposition. “No industry can afford that financial uptick in such a short period of time.”
According to a report released in April by the American Hotel and Lodging Association, Los Angeles is currently just 79% of its 2019 tourist levels, making it the least recovered major U.S. city following the COVID-19 pandemic.
The city lost 11,000 hotel jobs in 2024 as a result, according to a CUF analysis of state data. The city issued a full-page ad warning that “this new proposal will kill more jobs and raise costs for visitors” on Thursday, the day before the new wage and benefit ordinance is expected to be approved in a final vote.
The resolution was first proposed two years ago by Los Angeles City Councilman Hugo Soto-Martinez, a former employee of Unite Here! Local 11, the union supporting the pay boost in the restaurant industry. He stated that a salary increase is required to keep workers afloat due to constant inflation.
“Overall cost of living rose 6% in the US,” said his office in a news post. “Corporations have seen unprecedented profit growth – the S&P 500 increased by a whopping 43% since we originally introduced the motion.”
“Yet, despite soaring inflation and record corporate profits, low-wage workers were iced out. Not anymore,” continued Sot-Martinez.
Given last week’s 12-3 vote in favor of the legislation, the motion is expected to pass the final, procedural vote of the Los Angeles City Council on Friday.
