Los Angeles Hotel and Airport Workers Set to Receive Minimum Wage Boost

Starting July 1, 2025, hotel and airport workers will begin seeing increases in their minimum wage up to 2028. This is after the Los Angeles City Council approved the changes in December 2024. The initial rise is set to increase hourly pay to $22.50 and steadily to $30.00 by mid-2028, just in time for the 2028 Summer Olympics and Paralympic Games scheduled to be held in the city. 

This decision came after a 12-3 vote directing the city attorney to draft legislation amending both the Living Wage Ordinance (LWO) and the Los Angeles Citywide Hotel Worker Minimum Wage Ordinance (HWMO). This wage hike is in response to mounting pressure from worker advocacy groups and unions demanding better and fairer compensation for workers as we near the global event, which is expected to put significant strain on service industry workers.

Planned Minimum Wage Increases

Currently, L.A. airport workers earn $19.28 per hour if they receive health benefits or $25.23 without the benefits. On the other hand, hotel workers covered under the HMWO earn $20.32 per hour, while the minimum wage rate for other employees in Los Angeles currently stands at $17.28 per hour. With the planned wage increases, below is a breakdown of what these workers can expect to earn:

• $22.50 per hour starting July 1, 2025
• $25.00 per hour on July 1, 2026
• $27.50 per hour on July 1, 2027
• $30.00 per hour on July 1, 2028

The planned wage increases apply to hotel workers employed at properties with 60 or more guest rooms and to airport workers covered under the LWO. For concessionaires with 50 or fewer employees operating at LAX under existing leases, a hardship exemption clause will be added to allow businesses to apply for relief if complying with the new wage laws would lead to layoffs or bankruptcy.

With the new legislation in place, it will mark a 56% wage increase for airport workers and 48% for hotel employees over the next three and a half years. Additionally, healthcare benefits will increase from the current employer contribution of $5.95 per hour to $8.35 per hour as of July 1, 2025. From 2026, this health benefits rate will be adjusted annually based on state-reported data, ensuring the amount stays in line with rising healthcare costs. If an employer doesn’t meet the required benefit contribution, they must make up the difference in the employee’s paycheck.

What Does This Mean for Hotel and Airport Workers?

The planned wage increases ensure better pay for workers driving L.A.’s tourism industry and offer better legal protection. If an employer fails to comply with the new wage rules, an employee or their representative can file a civil lawsuit for a violation of the LWO or HMWO. However, before doing so, you must give written notice and allow your employer 30 days after receipt of the notice to correct the issue.

While the L.A. city attorney has yet to finalize legislation for the minimum wage increases, it’s expected that it will be done before the first increase on July 1, 2025.

Contact a California Employment Lawyer Today

If you have further questions or concerns about the planned wage increases or need help understanding your employment rights, contact an experienced California employment lawyer today for further expert legal guidance.