The Los Angeles City Council passed an ordinance in May 2025 that gradually raises the minimum wage for hotel and Los Angeles International Airport (LAX) employees, with the goal of reaching $30 per hour by July 2028. The measure passed 12-3 and is now awaiting Mayor Karen Bass’s final signature.
The initiative aims to improve working conditions in key sectors of the Los Angeles economy, particularly in preparation for the city’s hosting of the 2028 Olympic Games.
What will the salary increase be like?
The increase will be gradual, beginning in July 2025 at a wage of $22.50 per hour. From there, annual increases of $2.50 will be applied until the hourly wage reaches $30 in 2028. The official schedule is as follows:
July 2025: $22.50 per hour
July 2026: $25.00 per hour
July 2027: $27.50 per hour
July 2028: $30.00 per hour
Furthermore, beginning in July 2026, employers will be required to pay an additional $8.35 per hour to employees who do not receive company-provided health insurance, replacing the current payment of $5.95.
Who does this new regulation apply to?
The ordinance applies to hotels with more than 60 rooms as well as private companies operating at the airport, such as airlines, concessionaires, and ancillary services. This means that thousands of employees in the hospitality and tourism industries will benefit directly from the increase.
A mandatory six-hour training program for hotel employees will also be implemented, with a focus on labor rights, domestic violence prevention, human trafficking, and other forms of inappropriate workplace behavior.
Reactions for and against
Labor unions and advocates have hailed the decision as a step toward economic justice, claiming that essential workers deserve a living wage, particularly in a high-cost city.
However, hotel and tourism industry representatives have expressed concerns about the measure’s economic impact. Some warn that it could result in layoffs, reduced working hours, or even lower the sector’s competitiveness in comparison to other cities.
Comparison with other salaries in California
The current minimum wage in Los Angeles is $17.28 per hour, while fast food workers in California earn $20 per hour at chains with at least 60 locations. With this new ordinance, hotel and airport employees will have one of the highest minimum wages in the state and country.
A key step towards better working conditions
The passage of this ordinance marks a significant shift in Los Angeles labor policy. The wage increase to $30 per hour is intended not only to improve the quality of life for thousands of workers, but also to prepare the city for large-scale international events such as the Olympics.
Although the debate continues, this measure clearly puts Los Angeles at the forefront of labor rights in the hospitality industry. The true impact will be felt in the coming years, as the increases are implemented and the effects on the local economy are assessed.
