Los Angeles’ approval of a $30 minimum wage for hotel and airport workers by 2028 marks a seismic shift in labor policy, pitting working-class victory against business backlash just ahead of the 2028 Olympics.
At a Glance
- L.A. minimum wage for hotel and airport workers to rise to $30/hour by 2028
- Immediate jump to $22.50 in 2025, impacting over 23,000 workers
- Policy applies to hotels with more than 60 rooms and LAX contractors
- Labor unions call it a landmark victory; business leaders warn of layoffs and closures
- Ordinance passed 12-3 and awaits formal ratification by City Attorney
A Win for Workers, a Warning for Businesses
With a 12-3 vote, the Los Angeles City Council approved a measure that will gradually raise the minimum wage for hotel and airport workers from $18.86 to $30 an hour by 2028. The first phase of the hike, set for 2025, will lift wages to $22.50. The ordinance, championed by labor powerhouse Unite Here Local 11, is seen as a major victory for tourism-sector employees who’ve long pushed for better compensation amid surging living costs.
Watch a report: L.A. Raises Minimum Wage for Hotel Workers
“This building is finally working for the people, not the corporations,” declared Councilmember Hugo Soto-Martínez, a former hotel worker himself, as jubilant union members celebrated in City Hall.
Yet for business leaders and hotel operators, the mood is far from celebratory. The city’s tourism economy—already recovering slowly from pandemic-era losses—is now bracing for a wave of cost hikes. Critics argue the policy risks triggering layoffs, curbing investment, and souring the city’s reputation among prospective developers.
Economic Fallout or Revival?
Some hospitality executives, like Mark Davis of the Southern California Hotel Association, predict the mandate will “likely kill” projects under development, noting the sharp wage increase may outpace inflation and revenue growth. Rodriguez, a hotel HR director, warned, “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.”
Watch a report: Business Reacts to L.A. Wage Ordinance
But L.A.’s Chief Economist sees a different picture. The wage boost could fuel local spending and stabilize a workforce that has been historically undervalued. Councilmember Ysabel Jurado echoed this optimism: “When we support low-wage workers, they can contribute to our economy and bolster the city.”
The ordinance includes a clause mandating annual wage reviews and inflation assessments, providing future councils flexibility to adjust if economic conditions shift.
Olympics Pressure and Policy Legacy
The 2028 Summer Olympics are central to both sides of the argument. Supporters say world-class events demand world-class labor standards; opponents warn the wage law could stretch hotel resources thin during a period of peak demand.
Now in the hands of the City Attorney for formal drafting, the policy stands as one of the boldest labor reforms in the city’s modern history. The real test will come as hotels and airport employers decide whether to adapt—or exit the market entirely.
As the dust settles, L.A.’s bold bet on wage justice will serve as a national bellwether for whether high-cost cities can balance economic growth with equity in the years to come.
