Los Angeles is considering a proposal to raise the minimum wage for hotel and airport workers to $30 per hour by 2028. This initiative is driven by efforts to address the high cost of living and to ensure fair compensation for workers in the tourism sector, especially with the upcoming 2028 Summer Olympics in mind.
The proposal, known as the “Olympic wage,” was approved by the Los Angeles City Council in December 2024. It aims to incrementally increase the minimum wage for over 23,000 tourism workers, starting at $22.50 in July 2025 and reaching $30 by July 2028. The measure was championed by labor unions such as Unite Here Local 11 and United Service Workers West, who argue that the wage hike is necessary to keep up with rising living costs in Los Angeles.
Proponents believe that higher wages will boost the local economy by increasing workers’ spending power. Councilmember Ysabel Jurado stated that supporting low-wage workers enables them to contribute more significantly to the economy. However, some council members and business leaders express concerns that the increased labor costs could lead to job cuts or deter business investments. For instance, plans for a $250 million expansion of the Hilton Los Angeles Universal City Hotel are reportedly in jeopardy due to the proposed wage increase, said reports.
This move is part of a broader trend in California to raise wages for low-income workers. In April 2024, the state implemented a $20 minimum wage for fast-food workers at large chains, following a legislative agreement between labor and industry groups. The formation of the California Fast Food Workers Union further exemplifies the growing momentum for labor rights and wage increases across the state.
The proposed wage increase in Los Angeles reflects ongoing debates about economic equity, the cost of living, and the role of labor in the tourism industry, especially as the city prepares to host a global event like the Olympics.
