Los Angeles is delaying a $30 minimum wage for hotel workers amid fears of layoffs
Los Angeles is delaying a hotel bill mandate that would raise wages to $30 an hour by 2028 after industry leaders warned that an increase from $22.50 would create job cuts and a hiring freeze, according to Rebekah Paxton of the Employment Policy Institute.
Los Angeles officials have delayed implementation of a controversial plan to raise the minimum wage for hotel and airport workers to $30 an hour after the tourism industry warned the mandate could lead to layoffs, job cuts and increased redundancies.
The measure, often referred to as the “Olympic Wage,” was originally designed to raise wages to $30 an hour by 2028 as Los Angeles prepares to host the Summer Olympics.
But city leaders recently voted to delay full operation until 2030 amid concerns about rising labor costs as hotels prepare for a surge in visitors tied to the 2026 FIFA World Cup and the 2028 Olympics.
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Supporters say a $30 minimum wage would help hotel workers in Los Angeles keep pace with the city’s high cost of living, while opponents warn it could cut jobs. (Marcus Brandt/photo alliance/Getty Images/Getty Images)
Rebecca Paxton, director of research at the Employment Policies Institute, said city leaders began considering the timeline after concerns arose in the tourism industry ahead of several major international events.
“There was concern from the hotel community,” Paxton told Fox News Digital. “There is information that came out that the hotels were struggling before the Olympics, as we are close to the World Cup this summer.”
The proposal also comes as New York City officials are considering a separate plan to raise the city’s minimum wage to $30 an hour over several years, an idea that echoes ongoing efforts to increase wages in high-cost areas.
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Los Angeles will host athletes from around the world for the 2028 Summer Olympics as city leaders weigh policies aimed at preparing for the global event. (Frederic J. Brown/AFP/Getty Images / Getty Images)
Paxton noted that hotel workers currently earn a minimum wage of about $22.50 an hour, meaning the proposal would raise wages by nearly a third in just a few years. He said hotel owners have warned that high labor costs are already affecting hiring decisions as Los Angeles prepares for the World Cup and the Olympics.
Citing a report from the Los Angeles hotel industry, Paxton said some hotels have cut back on hiring because they can’t absorb expected labor costs.
City officials eventually voted to push back the $30 wage requirement from 2028 to 2030, a move Paxton said gives hotels “a little breathing room as we move up to the Olympics.”
Still, he said the delay doesn’t address the industry’s fundamental concerns.
“A $30 minimum wage is still $30,” Paxton said. “Stopping is a step in the right direction, but it won’t solve the bigger problem, which is that many people say they can’t sustain that level of wage increases.”
Paxton said supporters of the wage increase say workers deserve higher wages, especially as Los Angeles prepares to welcome millions of visitors for upcoming international sporting events.
“For supporters of this $30 minimum wage, this is the kind of guideline where they can make an emotional appeal to the public,” Paxton said. “Well, who doesn’t want to give workers more money?”
However, Paxton said the demand for higher wages could put pressure on an industry already experiencing hiring challenges.
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Los Angeles officials delayed a plan to raise the minimum wage for hotel and airport workers to $30 an hour until 2030. (Allen J. Schaben / Los Angeles Times via Getty Images / Getty Images)
“My team at EPI has done some work looking at the hotel industry since 2015,” he said. “And even before this happened, hiring was stagnant. There are few jobs available for people who want to be in the tourism industry.”
“So, by raising this kind of minimum wage for a large-scale hotel on top of what’s already there, you’re going to increase those negative economic impacts.”
The debate over the so-called Olympic Wage is expected to continue as Los Angeles prepares for a series of major international events while city leaders weigh the competing priorities of worker pay, business costs and economic growth.
