Los Angeles boosts tourism workers’ wages: what it means for the city’s future

Los Angeles City Council Approves $30 Minimum Wage for Tourism Workers

In a landmark decision, the Los Angeles City Council has voted to increase the minimum wage for approximately 23,000 tourism workers, including those employed at hotels and Los Angeles International Airport (LAX), to $30 per hour by 2028. This decision, passed with a 12-3 vote, marks a significant victory for labor unions and workers who have long struggled with the rising costs of living in Los Angeles. The wage increase is set to coincide with the city hosting several major international sporting events, such as the 2026 FIFA World Cup, the 2027 Super Bowl, and the 2028 Summer Olympics, collectively referred to as the “Olympic Wage.”
The legislation outlines a gradual wage increase, starting at $22.50 per hour on February 1, 2025, and incrementally rising to $25 in 2026, $27.50 in 2027, and finally reaching $30 by 2028. In addition to the wage increase, workers will receive a healthcare benefit of $8.35 per hour, a significant improvement over the current $5.95 provided to airport workers, with hotel employees previously receiving no such benefit.

Economic Implications and Industry Reactions

The decision to raise the minimum wage has sparked a heated debate among city officials, business leaders, and workers. Proponents argue that the wage increase will stimulate the local economy by enabling workers to spend more, thereby creating thousands of new jobs. Councilmember Ysabel Jurado emphasized, “When we support low-wage workers, they can contribute to our economy and bolster the city.” An economic study commissioned by the City Council supports this view, predicting the creation of 6,300 jobs and an injection of $1.2 billion into the L. A. region.

However, critics warn of potential negative impacts on the tourism and hospitality industries, which have not fully recovered to pre-pandemic levels. Chad Maender, president and CEO of the LAX Coastal Chamber of Commerce, expressed concern that the ordinance could have a “crippling effect beyond just the hotels and LAX.” Hotel owners fear that the increased labor costs might lead to closures or scaling back of operations, with some considering converting hotel rooms to residential units or withdrawing from Olympic-related agreements.

Voices from the Workforce

The wage increase has been met with jubilation among workers, many of whom have shared personal stories of hardship and perseverance. Lorena Mendez, a single mother of three and an employee at LAX’s airline catering company LSG Sky Chef’s, expressed her relief, stating, “With the $20 I make, it’s not nearly enough to help me live in Los Angeles. I am proud that city leaders are taking concrete steps to help better the lives of thousands of working families like mine ahead of the Olympics and Paralympics.”

Jovan Houston, an LAX customer service agent, also voiced her satisfaction, highlighting how the wage increase would ease the financial burden of her chronic obstructive pulmonary disease treatment. The decision has been a culmination of efforts by labor unions such as Unite Here Local 11 and the Service Employees International Union, which organized rallies, marches, and a three-day fast to advocate for the wage increase.

Our Advice on the City

For those planning to visit Los Angeles, the city offers a vibrant mix of cultural, culinary, and entertainment experiences. As the city gears up for the 2028 Olympics, travelers can expect enhanced infrastructure and services. For occasional travelers, a visit to the iconic Griffith Observatory or a stroll along Venice Beach provides a quintessential L. A. experience. For seasoned travelers, exploring the lesser-known neighborhoods like Silver Lake or the Arts District can offer a unique glimpse into the city’s diverse culture.

In conclusion, the decision to raise the minimum wage for tourism workers in Los Angeles is a significant step towards addressing income inequality and improving the quality of life for thousands of workers. As the city prepares for major international events, this move reflects a commitment to ensuring that those who contribute to the city’s vibrant tourism industry are fairly compensated. Whether you’re a first-time visitor or a seasoned traveler, Los Angeles continues to offer an ever-evolving landscape of opportunities and experiences.