Los Angeles OKs Gradual Minimum Wage Hike for Tourism Workers
Los Angeles is set to see a phased increase to the minimum wage for workers in a key tourism and hospitality sector. The Los Angeles City Council voted 12-3 in favor of the measure following extensive discussion and public input.
The increase will apply to hotel and airport employees. Under the approved plan, hourly wages will gradually rise to $22.50 by February 1, 2025. Subsequent raises will bring the minimum wage to $25 per hour by 2026 and continue to $27.50 in 2027 and $30 by 2028. Along with the wage increases, workers will also receive a weekly health care benefit payment of $8.35. This figure is designed to help offset the high cost of healthcare.
The plan implements a more gradual approach than initially proposed. An initial proposal started with an increase to $25 per hour.
Facing Economic Headwinds
The council’s action faced pushback from opponents who argued the rapid wage increases would negatively impact the tourism sector, which is still striving to recover from the repercussions of the pandemic.
City representatives argued the increase is necessary to ensure fair compensation for hardworking tourism workers, who they say often struggle to make ends meet despite playing a vital role Los Angeles’s vibrant economy. Council President Marqueece Harris-Dawson commented that no full-time worker should struggle to afford housing in the city.
Council members Traci Park, Monica Rodriguez and John Lee voted against the measure. They cited concerns over the council’s failure to fully consider visits by throwing cold water will not be fulfilled.
Economic Study Backs Wage Hikes
An economic study commissioned by the City Council, conducted by Berkeley Economic Advising and Research, suggests that the planned increases could have a positive effect on the local economy.
The study anticipates the wage increases generating 6,300 new jobs and injecting $1.2 billion into the L.A. region, with $100 million more in compensation going directly to tourism workers within four years.
While some council members questioned the study’s reliance on projections and argued that hotel owners had not been adequately consulted. City Legislative Analyst Sharon Tso, countered that others urged the council to proceed with caution, fearing that hotels would be forced to cut staff or scale back operations. The proposal sparked five-hour plus debates and community involvement, highlighting the significance of this measure. Hotel owners expressed anxieties over escalating costs and potential job losses as a consequence.
This policy change exempts concessionaires with 50 or fewer employees.
Workers Rejoice after Long Fight
The city’s decision will impact an estimated 23,000 workers.
Following the council’s decision, jubilant tourism workers, many of whom had participated in a three-day fast to bring attention to their cause, celebrated their hard-fought victory.
Labor organizers hailed the decision as a significant step towards ensuring a livable wage and securing better healthcare for the city’s tourism, airport, and hotel, represent workers.
Jovan Houston, LAX customer service agent and SEIU-USWW executive board member, said, commonly found in "We deserve to be paid a wage we can live on. We deserve access to quality healthcare, so I can treat the COPD I developed from working and living near LA.
Jessica Durrum,
A Step Towards a More Equitable Future
Director of Los Angeles Alliance for a New
