On Tuesday, a City Council committee moved forward with a plan aimed at boosting the minimum wage for employees working in hotels and airports, targeting to achieve $30 per hour by 2028.
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The Economic Development and Jobs Committee approved the proposal with some modifications, voting 3-1 in support. Councilwoman Traci Park, representing the 11th District which encompasses Los Angeles International Airport, cast the sole dissenting vote against raising wages. Meanwhile, Councilman Adrian Nazarian did not attend the meeting for this particular vote.
The matter will be presented to the complete City Council at a future meeting.
Councilman Hugo Soto-Martinez stated in favor of the proposal, saying now is the appropriate moment to act correctly for employees.
However, Park voiced worries regarding possible negative impacts on hotels and airport vendors.
“We are implementing a 50% rise in salaries and healthcare expenses at a time when our whole tourism sector is struggling, which is directly affecting our sales taxes, business taxes, and hotel taxes (TOT), as well as every other aspect impacting our city’s budget,” Park stated.
As per the proposal, starting in July, employees at hotels and airports will be paid $22.50 hourly, with this rate increasing by $2.50 each year over the next three years. By 2026, they will make $25 an hour; in 2027, their pay will rise to $27.50 an hour; and come 2028—when the area hosts both the Olympics and Paralympics—they will reach $30 an hour.
Employers would additionally have to offer an extra $8.35 hourly payment for healthcare; however, the committee decided to delay this mandate until January 1, 2026, rather than implementing it along with the initial wage increase scheduled for July.
The municipality anticipates implementing a public housekeeping training mandate as well, akin to the policies in place in Santa Monica and West Hollywood; however, this rule would apply exclusively to hotels boasting over 60 rooms.
This initiative would require at least six hours of training for hotel staff. The training would cover information about their rights and employers’ duties, as well as teach them how to recognize and react to incidents involving human trafficking, domestic abuse, or acts of violence, amongst other topics.
The Municipal Assembly would need to revise the city’sLiving Wage and Hotel WorkersMinimum Wage regulations.
The Living Wage Ordinance pertains to city contractors and guarantees that workers receive a designated living wage, which includes both a monetary wage and healthcare benefits. Meanwhile, the Hotel Workers Minimum Wage ordinance mandates that hotels with sixty or more rooms must compensate their staff according to the established minimum wage and grant them 96 hours of paid leave along with an extra 80 hours of unpaid vacation annually.
As per the proposed regulations, hotel proprietors might be eligible to seek an exemption from the housekeeping training mandate—provided they can show evidence of a significant threat of financial failure leading to closure, a staff reduction of at least 20%, or a cut in working hours for their employees exceeding 30%.
Concessionaires operating at airports with less than 50 staff members could qualify for a one-year hardship exemption allowing them to postpone any increments in wages and healthcare benefits.
Kim Nakashima, who leads policy and research at the city’s Department of Transportation, pointed out that although international visits to Los Angeles have not yet returned to pre-pandemic levels, current indicators remain consistent with those from the previous year.
“Given all the significant and worrying changes in federal trade and visitor policies, along with shifts in international attitudes and even concerns over domestic travel and consumer trust, there’s plenty to worry about,” Nakashima stated.
The director mentioned that it will require some duration before the present circumstances get mirrored in the city’s tax collection figures.
The CEO of Los Angeles World Airports, John Ackerman, attended the committee meeting and reiterated the stance he had earlier conveyed to the council’s Budget and Finance members: LAX continues to thrive robustly. However, he cautioned that increasing the minimum wage could impose extra fiscal strain on the airport’s business associates.
“I’m not passing judgment on costs, but current financial pressures could lead some partners to decide to withdraw from our market and invest their resources elsewhere,” Ackerman explained. “This would force us into one of two options: either close down the store space they vacate or find another entity to fill the void.”
In late April, Visit California announced that travel throughout the state decreased by 8.8% in February and 12.1% in March. The data also showed that air travel to California saw a decline of 15.5% from Canada, 24.2% from Mexico, and 22.1% from the United Kingdom.
The nonprofit creates and manages marketing initiatives aimed at increasing tourism in California.
“Flight books from Canada to the U.S. fell by over 70% in early 2025, prompting airlines to cut more than 300,000 seats from LAX through October,” Ackerman added.
The LA Tourism and Convention Bureau expects year-over-year decreases of 25% to 30% in total international tourists visiting Los Angeles.
On Monday, Governor Gavin Newsom stated that tourism in the state expanded last year, achieving a peak economic effect of $157.3 billion, which marks a rise of 3% from 2023. Additionally, he predicted a drop of about 1% in total visitors and approximately a 9.2% decrease in international travelers for 2025.
Hotel owners and airport vendors expressed opposition to the proposed wage increase, arguing that it would hike up labor expenses and might lead some enterprises to close down.
“Los Angeles hotel workers receive the nation’s highest salaries; however, they currently face job insecurity,” stated Rosanna Maietta, CEO of the American Hotel and Lodging Association, at a press briefing held at City Hall on April 29.
Municipal officials are contemplating a detrimental plan that could endanger these positions; this initiative might severely impact crucial tax income from tourism and result in the shutdown of hotels which are vital for hosting major events such as the 2026 FIFA World Cup, the 2027 NFL Super Bowl, and the 2028 Olympic Games.
In the meantime, Kurt Petersen, who is the co-president of Unite Here Local 11 — the union supporting the increase in the minimum wage — stated that the proposal would enhance the local economy and aid working families. He expressed his views in a statement, saying, “Local officials can seize the chance to make sure the Olympic and Paralympic Games bring advantages to diligent Angelinos, and this ordinance achieves precisely that.”
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