A new minimum wage law in Los Angeles, signed by Mayor Karen Bass on May 27, 2025, mandates a phased increase in hotel worker pay, culminating in a $30 per hour rate by July 2028. The ordinance, referred to as the 'Olympic Wage' due to its connection with the 2028 Olympic Games, applies to hotel and LAX airport workers and has already resulted in a pay hike to $22.50 per hour as of July 2025 [1].
According to Dr. Jackie Filla, President of the Hotel Association of Los Angeles (HALA), the wage and benefits package imposed by the city is 'utterly unaffordable' for hotels, especially during a period when affordability is a major concern for Californians and Americans [1]. HALA commissioned a study revealing that hotels have eliminated or expect to eliminate 6% of positions, amounting to roughly 650 jobs, since the ordinance took effect in September 2025 [1]. The job losses are primarily in labor-intensive roles such as food and beverage, housekeeping, and parking [1].
Filla noted that hundreds of hotel workers have already lost their jobs, with more seeing reduced hours. The industry is also experiencing restaurant closures within hotels, increased parking costs, and delays or cancellations in improvements and new building projects. These impacts are causing alarm among local policymakers, with Filla urging city officials to amend the ordinance to ease the burden on the hospitality sector [1].
The law's effects are particularly pronounced among working-class and blue-collar individuals, with fewer opportunities for advancement through executive training programs due to financial constraints. The negative consequences for the hotel industry are expected to continue as the wage increases are phased in over the coming years [1].
CONCLUSION
The phased minimum wage hike for hotel workers in Los Angeles is already resulting in significant job losses, reduced hours, and operational challenges for the hospitality industry. With further increases scheduled through 2028, industry leaders are calling for amendments to the ordinance to mitigate its impact. The market takeaway is a high level of concern regarding affordability and employment within the sector.