LA City Council Seeks Financial Impact of Hotel Worker Wage Increase

Group of hotel workers wearing facemask

Photo: Getty Images

LOS ANGELES (CNS) - The Los Angeles City Council voted 12-0 Tuesday to request a report on the financial impact of increasing the minimum wage for hotel workers to $25 an hour this year, with the goal of reaching $30 an hour by 2028.

Council members approved the recommendations from its Economic and Community Development Committee to instruct the chief legislative analyst to report on the economic impacts to amending the city's Living Wage Ordinance and Hotel Workers Minimum Ordinance.

"The tourism industry is a major economic engine in Los Angeles, yet many workers at LAX and in hotels are struggling to keep a roof over their heads and support their families," according to the motion introduced by Councilman Curren Price.

The CFA's report would include details on the feasibility of raising the minimum wage for hotel and tourism workers; adjusting health care coverage and requirements, paid time off and sick days; include a Public Housekeeping Training requirement to the city's HWMO; and lastly, clarify that the city's Office of Wage Standards would enforce the proposed amendments.

Stakeholders on both sides of the issue filled many seats in the Council Chamber.

Council President Paul Krekorian took a moment to clarify that the council would not be taking extensive public comment because the Economic and Community Development Committee had taken public comment that "satisfied" the matter. In addition, the committee had a "very thorough discussion" when the item was before them for recommendation, he said.

"We, in fact, already voted on it when we took up our agenda first thing today," Krekorian said. "What we approved was an economic study that will come back to the committee, as well as the ordinance changes."

"It's my expectation that the economic study will be back before this council with plenty of time before we take up the ordinance itself, so that the public and the members of council have a complete opportunity to examine and consider the economic study before any change is made in the ordinance," Krekorian added.

Still, some Angelenos provided general comments on the issue.

Javon Houston, a customer service worker at LAX, said she's a single mom who worked through the height of the coronavirus pandemic. Houston urged council members to raise the minimum wage for workers like herself.

Manash Patel, a representative of the Southern California Hospitality Network, said small businesses are the "backbone" of communities.

"When you look at the hospitality industry, the limited service is the small business," Patel said. "... We sell sleep. That's the only revenue source that we have. Other than that, everything is free."

Patel asked the council to "carve out" the limited service hotels from the proposed hotel minimum wage increase.

Council members Monica Rodriguez and Kevin de León were absent for Tuesday's vote.


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