Key Takeaways
• Los Angeles City Council approved $30 hourly wage for hotel and LAX workers by 2028 in an 8-3 vote.
• Employers must provide $8.35 per hour healthcare benefit starting July 2026 with mandatory worker training.
• Opponents warn of job losses and tourism impact while supporters cite fairness and Olympic preparation.
On May 23, 2025, the Los Angeles City Council approved a major change for workers at hotels and Los Angeles International Airport (LAX). With an 8-3 vote, the council passed an ordinance that will raise the minimum wage for these workers to $30 per hour by 2028. This decision, which still needs Mayor Karen Bass’s signature, is set to impact thousands of employees and reshape the city’s approach to worker pay, especially as Los Angeles prepares to host the 2028 Summer Olympic and Paralympic Games.
Let’s break down what this means, why it matters, and how it could affect workers, businesses, and the broader community.
What Did the Los Angeles City Council Approve?
The Los Angeles City Council voted to increase the minimum wage for two main groups:
- Hotel workers at hotels with more than 60 rooms
- Airport workers employed by private companies at Los Angeles International Airport (LAX), including airlines and concession stands
The new law sets out a step-by-step wage increase over four years:
- July 2025: $22.50 per hour
- July 2026: $25.00 per hour
- July 2027: $27.50 per hour
- July 2028: $30.00 per hour
In addition, starting in July 2026, employers must provide an $8.35 per hour healthcare payment for their workers. This is a big jump from the current $5.95 per hour healthcare benefit under the city’s Living Wage Ordinance. For most hotel workers, this will be a new benefit.
Why Is This Wage Increase Happening Now?
The push for higher wages began in 2023, led by Councilman Curren Price. Supporters call it the “Olympic wage,” linking it to the upcoming 2028 Olympic Games in Los Angeles. They argue that workers who help keep the city running—especially those who welcome millions of visitors—deserve better pay and respect.
The measure amends two existing city laws:
- The Living Wage Ordinance (LWO), which covers airport workers
- The Hotel Worker Minimum Wage Ordinance (HWMO), which covers hotel employees
The City Council first approved the measure in early May 2025, but because the vote wasn’t unanimous, a second vote was needed. That final approval came on May 23, 2025.
How Does the New Minimum Wage Compare to Current Rates?
This wage increase is much higher than what workers currently earn:
- Hotel workers: $20.32 per hour now (will rise by 48% by 2028)
- Airport workers: $19.28 per hour now, or $25.23 with healthcare benefits (will rise by 56% by 2028)
- General minimum wage in Los Angeles: $17.28 per hour
– California fast-food workers: $20 per hour at large chains
By 2028, hotel and airport workers in Los Angeles will have one of the highest minimum wages in the United States 🇺🇸 for their job categories.
What Other Rules Are Included in the Ordinance?
The new law does more than just raise pay. It also includes:
- Hardship exemption: Small airport concession businesses (with 50 or fewer employees at LAX under existing leases) can ask for a waiver if the new wage would force them to lay off workers or go out of business.
- Housekeeping training: Hotel workers must get at least six hours of training. This covers worker rights, employer responsibilities, and how to spot and respond to human trafficking or violence.
- Healthcare benefit adjustments: Starting July 2026, the healthcare payment will be adjusted each year based on increases reported by the California Department of Managed Healthcare.
Who Supports the Wage Increase—and Why?
Labor unions and worker advocates have strongly supported the new law. They say it’s about fairness and recognizing the hard work of people who keep the city’s tourism and travel industries running.
Councilman Curren Price, who started the proposal, said:
“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.”
Councilmember Hugo Soto-Martínez, a former union organizer, celebrated with workers after the vote, saying:
“It’s been way too long, but finally, today, this building is working for the people, not the corporations.”
Workers themselves say the change will make a real difference. Sonia Ceron, a single mother who works as a dishwasher for an in-flight catering company, said:
“As a single mother, I will no longer be forced to choose between paying the bills or buying her healthy food. I’ll be able to save for college. This Olympic wage will be good for working families, like mine, the city and our overall economy.”
Union groups like Tourism Workers Rising, which includes Unite Here 11, SEIU-United Service Workers West, LAANE, and CLUE, called the vote a victory for working families.
Who Opposes the Wage Increase—and What Are Their Concerns?
Business groups and some city leaders have raised serious concerns about the new law.
Carlos Singer, chief policy officer for the Los Angeles Area Chamber of Commerce, said:
“It is deeply troubling that an idea as unprincipled as this has gone on this far in our legislative process.”
Councilmember Monica Rodriguez warned that the higher wages could lead to job cuts, saying:
“We are right now facing 1,600 imminent layoffs because the revenue is just not matching our expenditures. The same will happen in the private sector.”
Adam Burke, president and CEO of the Los Angeles Tourism and Convention Board, pointed out that tourism is already struggling. He noted that several countries—including Canada 🇨🇦, France 🇫🇷, Germany 🇩🇪, Ireland 🇮🇪, the Netherlands 🇳🇱, and the United Kingdom 🇬🇧—have issued travel advisories about visiting the United States 🇺🇸.
“The 2025 outlook is not encouraging,” he said.
The Center for Union Facts, an anti-union group, ran a full-page ad in USA Today warning that the new law could “kill more jobs and raise costs for visitors.” They pointed out that the hospitality industry lost 11,000 jobs last year and said the city is “ruining a golden opportunity” by making it more expensive to do business.
What’s the Economic Context?
The wage increase comes at a tough time for Los Angeles:
- The tourism industry has not fully recovered from the COVID-19 pandemic.
- There has been a 61% drop in tourism, partly blamed on trade policies during President Trump’s administration.
- Several countries have issued travel warnings for the United States 🇺🇸.
- Wildfires and entertainment industry strikes have hurt local businesses and caused some film production to move elsewhere.
- Some hotel owners have said they may cut back on restaurant operations or avoid new investments in the city.
These challenges have made some business leaders worry that higher wages could lead to more job losses or make Los Angeles less attractive to visitors and investors.
What Happens Next?
The ordinance now goes to Mayor Karen Bass for her signature. If she signs it, the first wage increase to $22.50 per hour will take effect in July 2025. Here’s the timeline:
- Mayor’s review and signature: Immediate
- First wage increase: $22.50/hour (July 2025)
- Second wage increase: $25.00/hour and $8.35/hour healthcare payment (July 2026)
- Third wage increase: $27.50/hour (July 2027)
- Final wage increase: $30.00/hour (July 2028)
Opponents are hoping for a veto, but so far, the mayor’s office has not said what she will do.
How Does This Affect Immigrants and International Workers?
Many hotel and airport workers in Los Angeles are immigrants or come from immigrant families. For these workers, the wage increase could mean:
- Better financial security: Higher pay can help families afford rent, food, and healthcare.
- More opportunities: With extra income, workers may be able to save for education, support family members, or even start small businesses.
- Improved working conditions: The required training on worker rights and safety can help protect vulnerable workers, including those who may not speak English fluently or know their rights.
However, there are also risks. If businesses cut jobs or reduce hours to offset higher costs, some workers—especially those with less experience or limited English—could be at risk of losing their jobs.
What Should Workers and Employers Do Now?
For workers:
- Stay informed: Watch for updates from your employer or union about when the new wages will take effect.
- Know your rights: The city will require training on worker rights and safety. Take advantage of these programs.
- Plan ahead: Higher wages can help you save or invest in your future, but be aware of possible changes in job availability.
For employers:
- Review your payroll: Make sure you’re ready to meet the new wage and healthcare requirements.
- Apply for exemptions if needed: If you run a small airport concession business, you may qualify for a hardship waiver.
- Prepare for training: Ensure that all hotel housekeeping staff receive the required training.
For more information on minimum wage laws in Los Angeles, you can visit the official City of Los Angeles Minimum Wage Ordinance page.
What Does This Mean for Los Angeles’s Future?
This wage increase puts Los Angeles at the forefront of worker pay in the United States 🇺🇸, especially for hotel and airport workers. Supporters say it will help working families, boost the local economy, and show respect for the people who keep the city running. They also believe it will help Los Angeles prepare for the 2028 Olympics by making sure workers are treated fairly.
Opponents worry that higher costs will drive away tourists, force businesses to cut jobs, and hurt the city’s economy. They point to recent declines in tourism and job losses in the hospitality industry as warning signs.
As reported by VisaVerge.com, the Los Angeles City Council’s decision is being watched closely by other cities and states. Some may follow Los Angeles’s lead, while others may wait to see what happens before making similar changes.
Key Takeaways
- The Los Angeles City Council approved a major minimum wage increase for hotel and airport workers, reaching $30 per hour by 2028.
- The law includes new healthcare payments, required training, and possible exemptions for small businesses.
- Supporters say the change will help working families and prepare the city for the Olympics.
- Opponents warn it could lead to job losses and hurt tourism.
- The ordinance awaits Mayor Karen Bass’s signature, with the first wage increase set for July 2025.
For workers, employers, and community members, it’s important to stay informed as the city moves forward with these changes. The coming years will show how this bold move by the Los Angeles City Council shapes the city’s economy, workforce, and reputation on the world stage—especially as the world’s eyes turn to Los Angeles International Airport and its hotels during the 2028 Olympics.
Learn Today
Minimum wage → The lowest hourly pay legally allowed employers to pay workers in a city or region.
Ordinance → A local law or regulation passed by a city council to govern specific issues.
Healthcare benefit → Additional payment from employers to cover workers’ medical insurance or health-related expenses.
Hardship exemption → A waiver allowing small businesses relief from wage law requirements under difficult economic conditions.
Living Wage Ordinance → A Los Angeles law ensuring minimum pay and benefits for certain city-related workers.
This Article in a Nutshell
Los Angeles plans to raise minimum wages for hotel and LAX workers to $30 by 2028. This ordinance includes healthcare benefits and training, aiming to support workers and prepare for the 2028 Olympics. It faces opposition citing economic risks. The mayor’s signature is pending, with phased increases starting July 2025.
— By VisaVerge.com
