LA tourism workers could receive possible wage increase
LOS ANGELES - After delaying its vote on a proposal to increase the minimum wage for tourism workers, the Los Angeles City Council will make its decision Wednesday whether to approve the plan or side with hotel owners, who say the cost would impact their role in the 2028 Olympic Games.
In November, council members tabled the proposal after a lengthy and difficult discussion with city staff and a representative from Berkeley Economic Advising and Research, a consulting group that conducted an economic analysis for Los Angeles.
City Council members were left with more questions than answers, and some criticized the study, arguing it lacked sufficient information and failed to thoroughly detail potential impacts on local businesses.
Tourism workers represented by labor unions such as Unite Here Local 11 and SEIU-USWW have lobbied for wage increases and improved healthcare benefits.
To increase the minimum wage for tourism workers, the city would amend its Living Wage and Hotel Workers Minimum Wage ordinances.
Under the proposal, the ordinances would be amended to boost hourly wages to $25 an hour by Feb. 1, 2025, and provide a health care benefit payment of $8.35 for airport and hotel workers, respectively. Wages would then increase on a yearly basis through 2028 until reaching $30 an hour, among other mandates.
The LWO applies to city contractors and ensures that employees are paid a set living wage, setting a cash wage rate and health-related benefits, the other ordinance requires hotel employers with 60 or more guest rooms to pay their employees a minimum wage and provide 96 compensated hours of off time, and at least 80 additional hours of uncompensated time off per year.
Currently, airport and hotel workers earn $18.78 per hour and $19.73 per hour, respectively. Airport workers earn a healthcare payment of $5.95 per hour, while hotel workers do not.
Elected officials proposed a carve out for concessionaires with 50 or fewer employees, as well as for some hotel owners under specific conditions.
Meanwhile, hotel owners opposed the proposal, citing negative impacts to their business with some potentially shuttering down.
In a letter to Council President Marqueece Harris-Dawson, hotel owners listed potential consequences of the minimum wage increase. The Pebblebrook Hotel Trust, which operates nine hotels in L.A., West Hollywood and Santa Monica, anticipates closing hotel restaurants and scaling back operations, and converting hotel rooms to residential.
The operator of Embassy Suites LAX, Embassy Suites Los Angeles Downey and the Pierside Hotel Santa Monica would be unable to continue to provide anything other than entry level roles and wages.
The Hotel Association of Los Angeles has also warned that increasing higher wages for workers could impact contracts with LA28 and signatory hotels, which were negotiated back in 2020.
"These increases constitute an approximately 70% increase in wage and health benefits costs to hotels in 2025. By the time of the 2028 Olympics, the increase will be close to 100%," according to a letter from the Hotel Association of Los Angeles to the LA28.
"To put it plainly, this staggering increase in costs makes it infeasible for most if not all signatory hotels to participate in LA28's hotel room block," it added.
In anticipation of Wednesday's vote, some tourism workers are participating in a three-day fast in "hopes of inspiring" city leaders to stand with them, and approve the changes. The fasting workers plan to rally at 7:30 a.m. outside City Hall. They are expected to break their fast following the vote.