News Summary
Los Angeles is confronting a potential financial crisis as competing ballot measures regarding minimum wage increases for hotel and airport workers arise. With a recent ordinance targeting a pay rise to $30/hour by 2028, business groups are pushing to repeal this change. The city’s hotel workers’ union is advocating for higher wages amid rising living costs, while business leaders warn that such increases may lead to job losses. City officials fear that these propositions may jeopardize finances and upcoming events like the 2026 FIFA World Cup and 2028 Summer Olympics.
Los Angeles is facing a potential financial crisis as two competing ballot propositions regarding minimum wage for hotel and airport workers have emerged. A business group is currently gathering signatures to launch a referendum aimed at repealing a recent wage increase mandated by the City Council. This situation is being closely monitored as it may have significant implications for the local economy and upcoming major events in the city.
The City Council passed an ordinance earlier this year that sets a trajectory for raising the minimum wage to $30 per hour for hotel and airport workers by the year 2028. This increase marks one of the most substantial jumps in pay for hospitality workers in Los Angeles. The wage scale includes interim increases, which will see the minimum wage rise to $22.50 by July 2025, $25 by July 2026, $27.50 by July 2027, and finally reaching $30 by 2028. Additionally, the ordinance will require enhanced health benefits for the workers starting in July 2026.
The hotel workers’ union, Unite Here Local 11, has responded with its own proposals. These include a citywide minimum wage increase and the requirement for voter approval before any new hotel or event center developments can take place. The union argues that the wage increases are essential for workers experiencing the high cost of living in Los Angeles, which is particularly burdensome for those in the hospitality industry.
On the other hand, the business community has been vocal in its opposition. The coalition of business interests has filed a ballot proposition to repeal the city’s business tax, which currently generates hundreds of millions of dollars each year and is a crucial part of the city’s finances, especially during an ongoing fiscal crisis. Business leaders warn that the wage increases could lead to substantial job losses and reduced tax revenues for the city, further complicating financial stability.
City officials, including Councilmember Tim McOsker, have expressed concern that these competing propositions could disrupt the city’s finances. There are fears that the actions of both the union and business groups could compromise plans for significant upcoming events, including the 2026 FIFA World Cup and the 2028 Summer Olympics. McOsker described the standoff between the groups as a “game of brinksmanship” and urged all parties to reach a compromise.
Mayor Karen Bass has warned that repealing the business tax could lead to cuts in essential city services, ultimately affecting the business environment in Los Angeles. The L.A. Area Chamber of Commerce supports the repeal, citing that the business community feels overlooked by city government. This situation adds pressure to the discussions, as the hotel industry is significant in Los Angeles and plays a vital role in driving local tourism and the economy.
The California Hotel & Lodging Association, representing business interests, has claimed that the wage hike is unsustainable and could severely hinder employment opportunities within the sector. They argue that significant increases in wages may push businesses to reconsider hiring practices, potentially leading to layoffs or reduced hiring as employers attempt to adjust to increased labor costs.
Los Angeles’ hospitality workers, many of whom struggle to make ends meet, are currently grappling with rising living costs, economic fluctuations, and the lingering effects of the pandemic on tourism. The city council is now faced with determining the best path forward as it weighs the implications of the stakeholder referendum and competing proposals. The outcome will likely have long-lasting effects on both workers and the local economy in a crucial time for the city.
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Additional Resources
- Union Rayo: Minimum Wage for Los Angeles Hotel & Airport Workers
- The New York Times: Minimum Wage and the Olympics in Los Angeles
- Hotel Dive: LA Passed $30 Minimum Wage for Hospitality Workers
- NBC Los Angeles: LA City Council’s Tourism Wage Increase
- Google Search: Los Angeles Minimum Wage
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
