LA lost 11K hotel jobs in 2024, new $38.35 minimum wage risks more, group says – Washington Examiner
In 2024, Los angeles experienced the loss of 11,000 hotel jobs amidst discussions of implementing a new minimum wage of $30 for hotels with 60 or more guest rooms. This proposed wage, supported by unions advocating for hospitality workers, includes supplementary health benefit payments, effectively raising hourly wages considerably over three years. Currently, the minimum wage at these hotels is $20.32, while Los Angeles International Airport (LAX) workers earn $19.28. Critics, including the Hotel Association of Los Angeles, argue that such a steep wage increase in a short time frame could lead to further job losses and increased costs for visitors. They cite concerns over the city’s slow recovery from the pandemic, with current visitor levels at only 79% of pre-pandemic figures. Despite this pushback, proponents highlight rising living costs and corporate profit growth as justifications for the increase, asserting that it is essential for supporting low-wage workers. The Los Angeles City Council is expected to finalize the vote on the ordinance soon.
LA lost 11K hotel jobs in 2024, new $38.35 minimum wage risks more, group says
(The Center Square) – The Center for Union Facts, an anti-union advocacy group, ran a full-page ad imploring the Los Angeles City Council to not adopt a $30 hotel minimum wage, citing state data showing the city lost 11,000 hotel jobs in 2024 despite a growing population.
The $30 minimum wage would apply to hotels with 60 or more guest rooms, and Los Angeles International Airport concessionaires with more than 50 employees, with an additional health benefit payment — redeemable as cash wages for employees with separate healthcare — at $8.35 per hour for employees at covered hotels, and $5.95 per hour for covered LAX concessionaires.
The current minimum wage at impacted hotels is $20.32 per hour, while the minimum wage at LAX is $19.28 per hour. The Los Angeles citywide minimum wage is $17.28 per hour.
The benefits payments and first wage hike to $22.50 per hour would come into effect in full on July 1, 2025, rising to $30 per hour on July 1, 2028.
“The proposed ordinance calls for a dramatic increase in hotel wages within 60 days of adoption. Increasing hourly wages to $24.40 with an additional $8.35 for health benefits would result in a 69% increase in payroll in just two months,” wrote the Hotel Association of Los Angeles in opposition. “No industry can afford that financial uptick in such a short period of time.”
According to an April report from the American Hotel and Lodging Association, LA ranks last among major U.S. cities in post-COVID recovery, and with current visitor levels at just 79% of what they were in 2019.
A CUF analysis of state data found the city lost 11,000 hotel jobs in 2024 as a result, and warned in a full-page advertisement on Thursday, the day before an anticipated final vote approving the new wage and benefit ordinance, that “this new proposal will kill more jobs and raise costs for visitors.”
Los Angeles City Councilman Hugo Soto-Martinez, a former employee of Unite Here! Local 11, the hospitality industry union backing the wage hike, first introduced the motion two years ago and said persistent inflation means a wage increase is necessary to keep workers afloat.
“Overall cost of living rose 6% in the US,” said his office in a news post. “Corporations have seen unprecedented profit growth – the S&P 500 increased by a whopping 43% since we originally introduced the motion.”
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“Yet, despite soaring inflation and record corporate profits, low-wage workers were iced out. Not anymore,” continued Sot-Martinez.
Los Angeles City Council is holding a final, likely procedural vote on the motion Friday that is likely to succeed given last week’s 12-3 vote in favor of the ordinance.
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