Los Angeles just passed a law raising the minimum wage for hotel and airport workers to $30 an hour by 2028, ahead of the Olympic Games. Supporters say it’s a win for workers; critics warn it could crush jobs, tourism, and small businesses.
Key Facts:
- The Los Angeles City Council approved the wage hike in a 12-3 vote on Wednesday.
- The current minimum wage is $20 per hour; the increase starts July 1, 2025, and rises by $2.50 annually until reaching $30 in 2028.
- The ordinance applies to airport and hotel workers in the City of Los Angeles, ahead of hosting the 2026 World Cup, 2027 Super Bowl, and 2028 Olympics.
- Union leaders praised the move, but hotel industry officials warned it could lead to closures, layoffs, and higher consumer prices.
- Opponents say the policy ignores economic realities and may drive away tourism while worsening the city’s $1 billion deficit.
The Rest of The Story:
Los Angeles City Council members have voted to increase the minimum wage for hotel and airport workers to $30 an hour by 2028.
The measure is part of the new “Olympic Wage” ordinance, which schedules annual raises beginning in July 2025.
The current minimum wage is $20 per hour, but that will increase to $22.50 next year, with yearly boosts leading up to the 2028 Summer Olympics.
Supporters of the measure argue that tourism workers should be able to afford to live in the city they serve.
Councilman Hugo Soto-Martinez called the move a victory for dignity and fairness.
Jessica Durrum from LAANE said the wage hikes are necessary to prevent worker displacement from rising living costs.
However, opposition from within the council and the hospitality industry is strong.
Industry leaders and some council members believe the move will create an economic crisis in an already struggling sector.
Commentary:
The City of Los Angeles is repeating a dangerous economic pattern.
Instead of learning from the recent fallout in California’s fast food sector—where over 1,000 restaurants closed and 16,000 jobs disappeared after a minimum wage hike—the city is doubling down by targeting the hotel industry next.
A 48% wage increase, plus additional health benefits, isn’t a minor adjustment.
It’s a seismic shift that many hotels simply can’t absorb, especially in a city already facing a $1 billion deficit.
The result?
Higher hotel prices, fewer rooms, reduced staff hours, and potentially shuttered businesses.
All this comes as millions are expected to arrive for the Olympics, only to find that affordable lodging is scarce—or unavailable entirely.
It’s clear this move is more political theater than sound policy.
The council is tying wage hikes to the Olympics in an attempt to frame it as a celebration of working-class progress.
But the math doesn’t lie.
If hotels can’t sustain operations under the burden of these mandates, workers will be out of jobs, and the city will lose essential tax revenue.
Councilwoman Monica Rodriguez nailed it when she warned of creating “the highest-paid unemployed workforce in the country.”
Her concerns aren’t just economic—they’re practical.
Los Angeles hotels will be competing with venues just outside city limits that don’t face the same wage requirements.
This puts city businesses at a massive disadvantage.
The hard truth is that many workers cheering today may be looking for new jobs tomorrow.
Empty gestures can’t pay rent, and slogans don’t keep the lights on.
The Olympic dream could turn into an economic nightmare if the city’s leadership doesn’t wake up.
The Bottom Line:
Los Angeles is charging ahead with a $30 minimum wage for hotel and airport workers despite industry warnings of job losses and closures.
The decision ignores the lessons of recent wage hikes that devastated fast food employment.
With major events like the Olympics on the horizon, the city may soon find itself short on hotel rooms—and jobs.
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