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 Wage 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 was originally supported by five other council members.
"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 July 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.
Two other amendments required more attention from council members.
Councilman Adrin Nazarian sought to ensure hotel and airport workers could recoup in cash their healthcare payment, if they already receive healthcare through a partner, spouse or veteran plan. With assistance from a city attorney deputy, his amendment advanced.
Council members Monica Rodriguez and Traci Park, who opposed the minimum wage increase, sought an amendment to the proposal that would allow hoteliers to differentiate hotel employees from so-called variable-hour workers, or employees under contract for services such as marble polishing. The amendment was sent back to committee for further discussion after concerns were raised that it could impact restaurant workers located within a hotel.
Councilman John Lee, who also opposed the policy, sought to raise the 60-room requirement to 150 rooms, in a move to support limited-service hotels. It did not garner enough support to move forward.
The policy changes impact hotels with more than 60 rooms, and private companies at Los Angeles International Airport, like airlines and concessions. The city will also establish a public housekeeping training requirement, similar to policies in Santa Monica and West Hollywood.
The program will mandate no less than six hours of training for hotel workers. It would inform them of their rights and employer responsibilities, how to identify and respond to human trafficking, domestic violence or violent conduct, among other things.
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.
"It is deeply troubling that an idea as unprincipled as this has gone on this far in our legislative process," Carlos Singer, chief policy officer for the Los Angeles Area Chamber of Commerce said.
Mark Davis, the president and chief executive of Sun Hill Properties Inc., which manages the Hilton Los Angeles Universal City Hotel, has previously warned of investors choosing to do businesses elsewhere if the elected officials sign off on the wage increase.
On Tuesday, Davis told the Los Angeles Times that a future $250 million expansion of the hotel site, which would add a second 18-story tower, could be lost unless the proposal is reworked. The tower would open in time for the Olympics, adding more than 300 hotel rooms that would be available as part of a room block agreement with LA28.
"Our board was very adamant that if [council members] go forward with this nonsense, that it's dead," Davis told The Times. "They're going to move the project somewhere else."
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 winning 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.