THE AMERICAN HOTEL & Lodging Association has joined AAHOA in welcoming the Los Angeles City Council’s decision to delay a $30 an hour minimum wage raise for hotel workers in the city from 2028 to 2030. Negotiations continue over implementation of the city’s Citywide Hotel Worker Minimum Wage Ordinance.
Hotel owners and businesses raised concerns about the ordinance’s economic impact after it was passed in 2025. It 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 recent 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.
Rosanna Maietta, AHLA president and CEO, said in its statement that the delay was absolutely necessary.
“The city council took an important step to provide the hotel industry with the relief it desperately needed. While not perfect, this bill slows rapidly increasing operating costs amid declining travel demand,” Maietta said. “This action represents a shift in the political dynamics at city hall, with city leaders finally demonstrating a willingness to engage directly with the businesses powering the local economy and the hotel industry that supports nearly 65,000 local jobs.”
Maietta also said the city is still a difficult market for hotels to operate. She said AHLA has already raised concerns about the policies that strain hotels’ workforce, operations and ability to remain competitive.
AAHOA’s recent statement on the council’s decision made similar points.
“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.”
Because the vote was not unanimous, the new pay schedule will head to a second vote next week, according to the L.A. Times. City officials, hotel and airport businesses and labor unions had been in continuous negotiations since last Wednesday, The Times said, when the council narrowly approved an initial postponement of the wage increase to allow time to reach an agreement.
Kurt Petersen, president of Unite Here Local 11, which represents the hotel workers, accused city officials of giving “into blackmail.”
“They now have a playbook. The next time workers win something, they’ll threaten to blow up the city,” Petersen said of the business coalition. “It’s a bad day for workers.”
