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Los Angeles hotel owners push back against $30 minimum wage
Los Angeles hotel owners push back against $30 minimum wage

Yahoo

time27-06-2025

  • Business
  • Yahoo

Los Angeles hotel owners push back against $30 minimum wage

Los Angeles hotel operators have criticised a newly approved ordinance that will raise the minimum wage for staff at hotels of 60 rooms or more to $30 per hour by mid‑2028. The change, aimed at helping workers afford high living costs, has sparked concern from industry groups who warn it could strain an already fragile local hospitality sector. Hotel executives report that many renovation plans are on hold and some services, including valet parking and restaurant options, are being reduced. Pebblebrook Hotel Trust's CEO Jon Bortz said attempts to sell properties have failed, while boutique operator Mark Beccaria postponed a £8 million refurbishment originally scheduled before the 2028 Olympics. Operators warn that lower upkeep and fewer staff could harm guest experience during key events such as next year's World Cup, the Super Bowl, and the Olympics. The move to a $30 minimum wage has been championed by Unite Here Local 11, representing over 32,000 hospitality workers. The union argues that soaring rents—averaging around $2,383 a month for a two‑bedroom—and high living costs necessitate the pay raise. Organisers are now seeking to extend the wage increase citywide via ballot initiatives, hoping to build support and counter efforts to block the law. Industry bodies such as the American Hotel & Lodging Association have initiated a referendum campaign that could pause implementation if they collect around 93,000 signatures by late June. If successful, the wage hike would be suspended for one year and put to a vote in June 2026. Meanwhile, unions have launched their own petition drives to secure the measure and advance a broader proposal for a citywide $30 minimum wage. The debate over the hotel minimum wage in Los Angeles underscores broader tensions between efforts to improve worker pay and concerns over economic impacts on a tourism‑dependent industry that has yet to fully recover from the pandemic. "Los Angeles hotel owners push back against $30 minimum wage" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

L.A. hotels threaten to withdraw from Olympics deal over minimum wage hike
L.A. hotels threaten to withdraw from Olympics deal over minimum wage hike

Yahoo

time23-05-2025

  • Business
  • Yahoo

L.A. hotels threaten to withdraw from Olympics deal over minimum wage hike

Los Angeles hotel operators are threatening to withdraw from agreements to provide discounted rooms for the 2028 Olympic Games over a city ordinance that will significantly boost the minimum wage for hotel and airport workers. On Friday, the L.A. City Council will vote for a second and final time to hike the minimum wage for tourism workers to reach $30 an hour by July 2028. The ordinance passed the first round of voting on May 14 but did not get unanimous support. At least eight hotels say they will back out of the room block agreement if the measure passes. That agreement includes discounted rates for officials, sponsors, and even the media at hotels across the city. The hotel operators, including Hilton, Hotel Angeleno, Hotel Per La and Hollywood Roosevelt, argue that the increased labor costs are financially unfeasible. In-N-Out raises prices in response to California's minimum wage increase 'Common sense says you cannot raise wages over 30% in less than a year when revenue is flat,' argued Mark Beccaria of Hotel Angeleno. If this increase in labor costs passes, we will be forced by the City to consider converting this hotel in the heart of residential Brentwood into a homeless shelter.' 'If the City continues down this path and only listens to one side of the equation, there will be hotel closures, lost jobs and lost opportunities for all,' said Kara Bartelt, General Manager of Hoxton Los Angeles. Under L.A.'s Olympic Wage ordinance, the minimum wage for airport and hotel workers will increase incrementally. It is set to rise to $22.50 an hour in July 2025, followed by annual increases of $2.50 each July. This phased approach will see the wage reach its peak at $30 an hour by July 2028, coinciding with the start of the Olympic Games. Supporters, including labor unions, argue the wage boost will help keep workers in the city and benefit the local economy. 'City leaders have an opportunity to ensure the Olympic and Paralympic Games benefit hard-working Angelenos, and this ordinance does just that,' Unite Here Local 11 co-president Kurt Petersen told the city council. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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