The Los Angeles City Council has voted to raise the minimum wage for airport and hotel workers to $30 per hour by 2028, drawing praise from union leaders but sparking sharp warnings from the hospitality industry. The measure, passed 12-3 on Wednesday, is part of the so-called “Olympic Wage” ordinance, aimed at boosting wages ahead of the 2028 Summer Games.
Under the plan, hourly wages will rise by $2.50 annually starting July 1, 2025, moving from the current $20 per hour to $22.50 next year, and culminating in a $30 hourly rate in 2028. The city’s move is part of a broader push to match the high cost of living in Los Angeles with higher wages for service workers.
Union officials celebrated the passage as a victory for workers. Councilman Hugo Soto-Martinez said the measure ensures that those who “make this city run” can afford to live there with dignity. Jessica Durrum of the Los Angeles Alliance for a New Economy called it a “common sense” approach to address displacement due to housing costs.
However, industry leaders are raising red flags. Rosanna Maietta, CEO of the American Hotel and Lodging Association, warned that the policy could trigger mass layoffs, hotel closures, and a sharp drop in tourism-related tax revenue. She emphasized that the measure could jeopardize Los Angeles’ ability to successfully host major upcoming events, including the 2026 World Cup, the 2027 Super Bowl, and the 2028 Olympics.
Councilwoman Monica Rodriguez, who voted against the ordinance, criticized the decision as lacking fiscal foresight. She warned that the move will inflate hotel rates, reduce hours, and cut jobs—not only in hotels but across related tourism sectors.
Rodriguez added that tying the wage increase to the Olympics was misleading, as many of those events will take place outside city limits. With Los Angeles already facing a $1 billion deficit and preparing for layoffs, she cautioned that the city could end up with the “highest-paid unemployed workforce in the country.”
California’s last minimum wage hike to $20 per hour led to more than 10,000 layoffs in the restaurant industry alone. Business leaders fear this new increase could result in a repeat scenario, with small businesses bearing the brunt of politically motivated wage mandates.
