- L.A. council moved to delay the $30 hotel wage to 2030.
- AAHOA backed the delay over hotel operating costs.
- Members own more than 1,100 hotels in Greater Los Angeles.
THE LOS ANGELES City Council advanced an ordinance that could delay implementation of the Citywide Hotel Worker Minimum Wage Ordinance, pushing the $30 hourly threshold from 2028 to 2030. Industry groups, including AAHOA, supported the delay, saying the wage increase timeline should reflect economic conditions faced by hotel operators.
The action follows concerns from hotel owners and businesses about the ordinance’s economic impact, which would raise hotel worker wages from $22.50 in 2025 to $30 by 2028 and add mandatory healthcare benefit payments starting in 2026, AAHOA said in a statement. The 9 to 6 vote advances a proposal described by officials as a “placeholder” to allow continued negotiations among city leaders, labor organizations and hospitality stakeholders.
“AAHOA members support fair wages and strong career opportunities for hotel employees, but policies of this magnitude must reflect the economic realities facing hotel owners,” said Rahul Patel, AAHOA chairman. “Many hotel owners, particularly small business and family-owned operators, continue to face rising labor costs, increased insurance premiums, higher taxes and ongoing operational challenges. Delaying implementation provides an opportunity for meaningful discussions that can lead to a more balanced and sustainable solution for workers, hotel owners and the city.”
The council’s action follows concerns from hotel owners and businesses about the ordinance’s economic impact, the statement said. However, the measure is not final and requires another vote before any delay takes effect. AAHOA members own more than 1,100 hotels in Greater Los Angeles.
Laura Lee Blake, AAHOA president and CEO, said the hospitality sector is a major economic driver for Los Angeles as the city prepares for global events, including the 2028 Olympics.
“This pause creates an important opportunity for policymakers and stakeholders to work together toward solutions that protect workers while ensuring hotels can continue operating, investing in their properties and sustaining local jobs as Los Angeles prepares to welcome the world in 2028,” she said.
Supporters of the ordinance say rising living costs require stronger wage protections, while opponents say rapid increases could strain small hotel operators and lead to reduced services or closures. The council’s action keeps the law in place while negotiations continue.
Opponents of the wage increase, including AAHOA, gathered enough signatures to place a Nov. 3 ballot measure seeking to repeal the city’s gross receipts tax. City officials said the measure could reduce about $740 million from the general fund in its first year, affecting funding for police, firefighters, homelessness programs and other services. Supporters of the measure, including airline and hotel industry groups, said they would withdraw it if the city delays or halts the $30 wage timeline.
