Los Angeles’s Democratic leaders are banking on a tourism boom — but a planned $30 minimum wage for hotel staff has owners seeing red. As the city gears up to host the 2026 FIFA World Cup and the 2028 Summer Olympics, a new law aimed at raising hotel workers’ pay has sparked a high-stakes clash between unions and the travel industry.
Mayor Bass led the way for the City Council.
The Los Angeles City Council has approved a measure to raise the minimum wage for hotel and airport workers to $30 per hour by 2028. This decision was made despite warnings from hotel executives about potential job losses and economic impacts. The ordinance mandates annual wage increases starting in July, with the current hotel minimum wage in Los Angeles being $20.32.
Paying higher wages would prompt the businesses to retrench, downsize operations and abandon projects in and around the city. Unskilled labor will now make $30 an hour.
The Hotel Association of Los Angeles warned the local Olympic organizing committee that it might not be able to honor contracts to furnish rooms for the 2028 L.A. Games. One property company said its investors would kill a planned expansion of a Hilton in Universal City if the higher wage kicked in. Another chief executive asserted that the city “has been crossed off the map by investors” in hotel projects.
Passed by the Los Angeles City Council in May 2025, the new law:
- Raises the minimum wage for workers at hotels with 60+ rooms and for LAX workers
- Begins at $25/hour in 2026, increasing to $27.50 in 2027, and $30/hour in 2028
- Includes healthcare benefit requirements or compensation if not provided
The proposal, known informally as the “Olympic Wage,” is tied to the city’s preparation for the 2026 World Cup and the 2028 Summer Olympics—two events expected to generate billions in tourism revenue.
“Fast food chains in California have cut approximately 18,000 jobs since the $20 minimum wage was enacted.”
Many franchises are turning to automation, shrinking staff, or closing entirely. The concern is that the hospitality industry could see similar job losses—or worse—if the $30/hour requirement is upheld.
Just add 1,000$ a night to the hotel cost.
What could POSSIBLY go wrong?