Los Angeles has become ground zero for a battle over wages, tourism, and the city’s future. The City Council’s decision to raise the minimum wage for hotel and airport workers to $30 an hour by 2028 – a move supporters have dubbed the “Olympic Wage” – has sparked a fierce backlash from hotel owners.
With the 2026 World Cup and 2028 Olympics on the horizon, union leaders say the raise is essential for workers priced out by soaring rents. But business groups warn it could cripple L.A.’s hospitality sector, with one hotelier calling it “a direct threat to our survival.”
Inside the Controversial Wage Law
In May 2025, the Los Angeles City Council approved Ordinance No. 188610, requiring annual pay hikes for hotels with 60 or more rooms and airport employers. The rate will climb until it reaches $30 by July 2028, a timeline intentionally tied to the Olympic Games.
The hotel industry associations oppose the move, warning that the law could destabilize the sector as it recovers from the pandemic.
How the Pay Hikes Roll Out
The increases begin at $22.50 an hour in July 2025, followed by $25 in 2026, $27.50 in 2027, and $30 in 2028. Employers must also provide health benefit contributions, pushing total compensation even higher.
“It’s not just wages – it’s the full cost package,” one hotel operator explained.
Workers Say It’s Long Overdue
Union groups, led by Unite Here Local 11, argue the hikes are vital for thousands of employees struggling to survive in a city where the median rent has soared past $3,000. “Too many of our members work two or three jobs and still can’t cover rent,” co-president Kurt Petersen said, adding that hospitality workers deserve to live in the city they help attract visitors to.
Hotels Warn of an Economic Tsunami
Owners argue the mandate will drive up operating costs so sharply that layoffs, closures, and higher guest rates are inevitable. “This isn’t sustainable for small, independent hotels,” one owner warned, predicting some will shut down entirely if the law stands.
Olympic Lodging Could Be in Jeopardy
At least eight major hotels have threatened to pull out of agreements with the LA28 Olympic organizing committee. Without relief from labor costs, they say they can’t provide discounted rooms for athletes and officials, potentially throwing Olympic lodging plans into chaos.
Billions in Tourism Dollars at Stake
City economists estimate the 2026 World Cup will generate $594 million for Los Angeles, while the Olympics could pump $18 billion into the local economy and create nearly 100,000 jobs. “Those numbers vanish if we can’t house visitors affordably,” a business coalition spokesperson said.
Hotel Owners Launch Petition Drive
In response, hotel owners and business groups gathered nearly 93,000 signatures to suspend the ordinance and force a public vote. “We want voters, not politicians, deciding this,” said a coalition representative.
If the signatures hold, the measure will land on the June 2026 ballot, potentially stalling the pay hikes for at least a year and setting the stage for a high‑stakes citywide vote.
Pay Hike Put on Pause
As of July 2025, the $30 wage plan is on hold while city officials verify the petition signatures. For now, hotel and airport workers will stay at $21.01 an hour – not the $22.50 boost originally set for July 1.
The review process could take months, extending the uncertainty for employees counting on the raise and businesses bracing for higher labor costs.
Industry Says Costs Could Spiral
Hotel operators cite razor-thin margins, inflation, and soaring insurance premiums as reasons the wage is unworkable. “If this passes, renovations stop, hiring freezes, and the city’s tax revenue takes a hit,” warned one downtown hotel manager.
Unions Double Down
Labor groups are staging strikes and rallies to keep momentum. “This is our floor, not a ceiling,” Petersen said, insisting anything less than $30 ignores the crushing costs of living in Los Angeles.
City Council Still Split
The measure passed 12–3. Councilmember Traci Park, who opposed it, said business leaders fear a slow recovery and declining international travel could further weaken L.A.’s tourism hub.
Setting a National Record
If upheld, Los Angeles will have the highest local minimum wage for hospitality workers nationwide. Santa Monica has already signaled plans to match it, putting regional pressure on hotels to adapt, or lose staff to higher-paying neighbors.
The Countdown to a Public Vote
The City Clerk is verifying each signature, a step that could decide Los Angeles’ economic future. If the petition qualifies, the wage battle will head to the June 2026 ballot, leaving hotel workers, business owners, and Olympic planners in limbo.
If the petition fails, the $30-an-hour raises take effect immediately, locking the city’s hospitality industry into higher costs and forcing hotels to brace for impact.