The City Council Wednesday gave preliminary approval to an increase in the minimum wage for hotel and airport workers — reaching $30 an hour by 2028 — a plan hoteliers and some business owners warned will threaten an already unstable industry facing challenges due to declining visitors and federal policies.
In a 12-3 vote, council members authorized updates to the city’s Living Wage and Hotel Workers Minimum Wages ordinances, which regulate the minimum wage for such workers. Hotel and airport employees would receive $22.50 an hour starting in July under the amendments, followed by an annual $2.50 increase over three years.
The matter will return to the City Council on May 23 for a second vote.
But Wednesday’s preliminary approval moved the city a step closer to finalizing a proposal initiated by Councilman Curren Price in 2023, which five other council members originally supported.
“For years, our hotel and airport workers have done the heavy lifting — welcoming millions, keeping L.A. moving and powering the city’s growth,” Price said in a statement. “This policy is about respect, recognition, and fair pay for the workers who’ve always been essential to L.A.’s success.”
Workers are expected to earn $25 an hour beginning July 2026, $27.50 an hour in July 2027 and $30 an hour in July 2028, as well as receive a new $8.35 per hour healthcare payment, which will begin Jan. 1, 2026.
Council members introduced several amendments Wednesday to address some concerns with the overall plan.
For example, Councilwoman Nithya Raman called for city staff to monitor impacts of the minimum wage increase on the tourism industry six months prior to and after its implementation, as well as a one-year study. Councilwoman Imelda Padilla called for a measure to ensure hotel workers are not required to attend multiple sessions of a proposed public housekeeping training.
Under existing regulations, hotel workers earn $20.32 per hour and airport employees earn $19.28 with a $5.95 per hour healthcare payment, totaling $25.23.
Hoteliers and airport concessionaires criticized the wage increase, saying it will raise labor costs and could force some businesses to shut down at a time when the tourism industry faces challenges.
Meanwhile, Kurt Petersen, co-president of Unite Here Local 11 — the union backing the minimum wage hike — said the measure would boost the local economy and support working families.
“Tourism workers have once again made history by earning the highest minimum wage in the nation! The Olympic and Paralympic Wage is the first step to ensure these mega events benefit hard working families and not just bosses and billionaires,” Peterson said in a statement.
