L.A. City Council Committee Moves Forward on Plan to Boost Pay for Hotel and Airport Workers

On Tuesday, May 6, a Los Angeles City Council committee moved forward with
a proposal
To boost salaries and enhance healthcare benefits for employees at hotels and airports—a step proponents argue is essential to adequately reward workers in the tourism sector before the 2028 Olympics—but
opponents
a warning could put pressure on an already struggling tourism sector.

The proposal would raise the hourly wages for hotel workers and workers at airports operated by Los Angeles World Airports to $30 by
2028
They would additionally get a new payment of $8.35 per hour aimed at covering healthcare costs.

The discussion arises as the city confronts an issue with
projected $1 billion budget shortfall for the upcoming fiscal year
And heightened stress on hotels and restaurants due to the latest wildfires, shifting federal regulations, and difficulties during the post-pandemic rebound.

The Los Angeles City Council’s Economic Development and Jobs Committee approved the proposal with three votes in favor and one against, advancing it to the full City Council along with some modifications. The changes involve postponing the implementation of healthcare benefits for hotel workers from July 1, 2025, to January 1, 2026, and specifying that this requirement will apply solely to hotels having 60 or more rooms.

The panel likewise asked for an additional report within half a year to examine how raising wages affects the tourism sector. This should cover information such as company shutdowns, employment reductions, requests for financial relief exceptions, forecasts related to taxes from short-term rentals, along with various other signs of economic performance.

We have tried to strike a balance between ensuring fair living wages and addressing the economic challenges we face, which are evident not only nationally but also locally,” stated Councilmember Curren Price, who heads the committee and backs the proposal. “However, we recognize the necessity of making adjustments and being deliberate about them.

However, not all council members agree. Councilmember Traci Park, who was against the proposal, stated that she backs the rights of workers from every sector—not only those in tourism—but cautioned that the city needs to proceed with care when enacting comprehensive workplace policies.

She contended that implementing a substantial raise in wages and healthcare benefits when the tourism industry is still struggling could exacerbate the damage.
city’s revenue and budget
.

We are implementing a 50% rise in wages and healthcare expenses even as our whole tourism sector is struggling,” she stated. “This is having a direct effect on our sales taxes, business taxes, transient occupancy tax, and every other aspect of our city’s budget.

Supporters, including workers who have
spent nearly two years
pushing for a wage increase, celebrated the committee’s decision.

“I am delighted; I’ve put in tremendous effort over an extended period for this victory,” stated Olga Tirado, a member of Unite Here! Local 11, representing over 32,000 employees at hotels, eateries, airports, stadiums, and conference venues across Southern California and Arizona.

Tirado makes $20.73 per hour at Flying Food Group, a catering firm, yet spends over $2,100 monthly on a single bedroom apartment. Additionally, she sends funds back to Colombia to support her mother’s care.

Through an interpreter, Tirado expressed her joy at seeing the proposal advance after almost two years of efforts—including a hunger strike in late 2024. “This will assist numerous working individuals like myself,” she stated.

However, business organizations and sector heads cautioned that the proposal might lead to significant economic repercussions.

“Today’s progression of the Los Angeles wage ordinance will likely worsen the city’s financial crisis and jeopardize employment stability throughout the broader tourism and hospitality sector,” stated Rosanna Maietta, who serves as both the president and CEO of the American Hotel & Lodging Association.

What is happening in Los Angeles isn’t just a minor fluctuation in travel,” she stated. “The city continues to face challenges in returning to the tourist levels seen before the pandemic, with recent figures showing a decline.

The organization faulted the City Council for proceeding despite “grave alerts” issued by municipal authorities and frontline enterprises.

Maietta stated that everyone has indicated this is the least suitable time to contemplate modifications for an already vulnerable travel, tourism, and hospitality sector within the city. He emphasized that supporting the ongoing recuperation and maintaining economic steadiness should be prioritized instead of implementing measures likely to result in hotel shutdowns and massive job cuts.

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