Los Angeles Union Pushes for Citywide $30 Minimum Wage for Hospitality Workers
A significant movement is underway in Los Angeles as Unite Here Local 11, a union representing 32,000 hospitality employees, seeks to expand its recently secured minimum wage initiative from hotel and airport workers to all employees citywide. This effort comes on the heels of a landmark decision that raised wages for tourism-related positions to $30 an hour by 2028.
Current Wage Legislation
As per the latest legislation approved by the Los Angeles City Council, the minimum wage for hospitality workers will rise incrementally from $22.50 an hour in July 2024, increasing by $2.50 each July until it reaches $30 in 2028. The law was notably dubbed the "Olympic Wage" due to its timing ahead of the 2028 Olympic Games.
Explaining the Wage Increase
- July 2024: Minimum wage set to $22.50
- July 2025: Minimum wage to increase to $25
- July 2026: Minimum wage to rise to $27.50
- July 2028: Final figure of $30
The push for this increase is driven by the California Housing Partnership, which highlights that renters in Los Angeles County must earn nearly three times the city’s current minimum wage of $16.04 to afford average rent of $2,498 a month.
Industry Response: Concerns and Opposition
However, the hospitality sector is not taking this development lightly. Leaders from the American Hotel & Lodging Association (AHLA) are warning that this unprecedented wage increase could lead to what they describe as an "economic tsunami."
Key Concerns:
- Job Losses: The AHLA predicts up to 15,000 tourism jobs may be at risk due to rising labour costs.
- Financial Strain: A staggering $342 million in upcoming hotel developments could be revoked.
- Impact on Travel: The tourism industry has already been facing hurdles:
- International travel has decreased by 13.5%.
- Canadian visitation has plummeted by over 70%.
- Airlines have reduced 320,000 seats from LAX.
Rosanna Maietta, AHLA President and CEO, emphasized the current economic uncertainty in her message to Mayor Karen Bass, stating, “City officials have described the current economic environment as one of ‘unprecedented uncertainty’ and ‘full of red flags.’”
Referendum and Next Steps
In response to the newly established wage law, the Los Angeles Alliance for Tourism, Jobs and Progress has initiated a referendum to repeal this legislation. They are aiming to gather 93,000 signatures by the end of the month to pause the wage increases for a year, leading to a potential public vote in June 2026.
Lessons from Other Sectors
Critics of the hospitality wage increase often cite the challenges faced after California instituted a $20-an-hour minimum wage for fast food workers. According to an analysis from the Employment Policies Institute:
- Nearly 14,000 fast food jobs were lost in California.
- 93% of restaurants raised their menu prices shortly after the wage increase was implemented.
Conclusion
With the deadline for the referendum approaching, the debate over the wage increase illustrates the broader challenges facing Los Angeles’s economy. As the union pushes for an expanded minimum wage, concerns from the hospitality industry reveal a contentious divide between worker rights and business viability. The outcome could have lasting implications for both employees and employers alike as the city gears up for the 2028 Olympics.
Learn more about minimum wage laws in California.
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