Los Angeles’ Proposed Minimum Wage Increase for Airport and Workers in Large Hotels (60+ rooms) Remains Suspended

Many Los Angeles residents have heard that airport workers and large hotel workers may receive a significant minimum wage increase this year. This potential increase applies to airport workers and hotel workers who work in a hotel with 60 rooms or more. In fact, it is important to note that small hotels, which means any properties with 59 rooms or less, are not affected by this new proposed ordinance and will continue to pay its workers the standard minimum wage ($17.87/hour). This small hotel exemption includes boutique hotels, bed-and-breakfast inns, mom-and-pop motels, etc.

In December of 2024, the Los Angeles City Council approved their Living Wage Ordinance and Hotel Worker Minimum Wage Ordinance to increase the minimum wage for both airport workers and hotel workers. In May of 2025, the Los Angeles City Council amended both ordinances. This wage increase for airport and hotel workers is meant to increase minimum wage for these specific workers to $30 an hour just weeks before Los Angeles is set to host the 2028 Summer Olympic and Paralympic Games. However, a referendum filed in June of this year has put these new minimum wage increases on hold- at least for now. Regardless, employers and employees should be aware of these new ordinances and how they may affect workers in airports and hotels.

First, these ordinances intended to increase the minimum wage for both airport and hotel workers beginning on July 1, 2025. Under the current ordinance, hotels with 60 or more rooms were required to increase their workers’ minimum wage to $21.01 on July 1, 2025. If the new ordinance is implemented, these hotel workers will see their current minimum wages increase to $22.50 an hour.

With regard to airport workers, under the proposed new ordinance, all airport workers would receive the increase in their minimum wage. Under the current ordinance, airport workers’ minimum wage were raised to $19.87 on July 1, 2025.

Under the new proposed ordinance for covered airport and hotel workers, the minimum wage increase would be incremental on a yearly basis as follows:

• $22.50 per hour on 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

Thus, in a span of four years, the hotel and airport worker’s minimum wage would increase from $21.01 to $30.00 an hour.

Second, both airport and hotel workers receive more health benefits under the new proposed ordinance. For airport workers whose employers do not provide health benefits, employers must increase the workers’ hourly rate by $7.65 per hour beginning on July 1, 2025. For every year after 2025, annual increases in this health benefit payment will be reliant on the California Department of Managed Healthcare’s Large Group Aggregate Rates. Likewise, covered hotel workers whose employers do not provide health benefits must receive health benefit payments beginning on July 1, 2026 that match the benefit rates for employers servicing the Los Angeles International Airport (LAX).

Finally, the new proposed ordinance set forth mandatory training for hotel workers that is set to begin on December 1, 2025. Covered employees must participate in at least six hours of live, interactive “Public Housekeeping Training.” This training would cover the following issues:

• Hotel worker rights and employer responsibilities;

• How to identify and respond to suspected human trafficking, domestic violence or threatening behavior;

• Cleaning techniques that help prevent the spread of disease;

• How to detect and avoid insect and vermin infestations; and

• How to recognize and respond to other potentially criminal activity.

Despite the fact that a referendum filed this past June has put this new proposed minimum wage increase on hold, employers and employees should be aware of what the city of Los Angeles has been considering and what was actually approved by the city. Employers need to be aware of what new potential rules they may have to follow, and employees will need to be aware of what new rights and wages they may be entitled to. This is especially important because the potential increase in minimum wage will be significant, the costs will be significant to employers, and employees will have more rights against employers. In fact, California recently passed a new law significantly increasing minimum wage specifically for fast food workers (the California Food Accountability and Standards Recovery Act). It seems that doing business in California will likely become more expensive for employers in across all industries.