Update: Los Angeles’ Citywide Hotel Minimum Wage Ordinance Is Already Having Disastrous Effects on the Local Economy

The implementation of the City of Los Angeles’ Hotel Worker Minimum Wage Ordinance (“Ordinance”), which was adopted in May of 2025 and became effective in September of 2025, has already had disastrous effects in the first six months. Employers have been forced to cut costs and the hotel industry, its employees, and its partners are paying dearly for this implementation: they are paying with their entire livelihood. Instead of smaller, incremental, merit based hourly wage increases, the minimum wage mandate forced an entire industry and those who rely on this industry to absorb extraordinary increases in costs nearly overnight.

Bar Owners and Nightclub Owners Are Now Required to Offer Drink Lids

As of July of 2025, bar owners and nightclub owners are now required to provide a lid with a customer’s drink upon request. Bar owners and nightclub owners are not required to have lids that fit all containers in which alcoholic beverages are served. However, bar owners and nightclub owners must be able to provide lids for at least one of the containers used on the premises. Again, the bars and nightclubs can charge customers a reasonable amount based on the wholesale price.

Bars, Business Owners, Employers, Liquor License, Nightclubs, RestaurantsKathleenFebruary 5, 2026bars, nightclub, drink cups with lids

California Employees Who are Caring for a “Designated Person” Can Receive Paid Family Leave Benefits.

California has expanded paid leave and wage replacement laws again under its Paid Family Leave Program (PFL). Starting on July 1, 2028, California’s PFL will include “designated persons” who are not legally or biologically related to the employee. This means that eligible employees can now receive 8 weeks of partial wage replacement when the employee takes time off of work to care for extended family and any “designated person” who has a “family-like” relationship with the employee.

L.A. Airport Workers and Hotel Workers Will Be Earning $30 An Hour by July 2028

The City of Los Angeles’ Ordinance requiring a $30 minimum wage for hotel and airport workers is no longer suspended, meaning the ordinance became effective on September 8, 2025. The referendum petition that had kept the new ordinance in suspension has failed due to insufficient signatures in support of the referendum.

Newport Beach, California Business Owners: You Must Accept Cash!

The city of Newport Beach in Orange County, California has made it mandatory for brick-and-mortar businesses to accept payments in cash when the customer is physically present at the business. This means that the businesses can no longer decide to go “cashless” and can no longer require payment from online services such as ApplePay, Venmo, Zelle, etc. In addition, these businesses are not allowed to charge a fee or place any other condition on its acceptance of cash. This city-wide requirement begins on March 31, 2025.

Employers Cope with the Implementation of California’s $20 Fast Food Minimum Wage.

California’s mandatory $20 minimum wage for fast food workers is already changing the way fast food chains operate. Business owners could have predicted the immediate outcome of California’s infamous $20 fast food minimum wage: rapidly rising prices of fast food and the mass layoff of fast food workers was no surprise. The fallout in the California fast food industry has begun and we are only seeing inklings of the fast food industry’s future. For fast food restaurants and their owners, the simultaneous increase in the 1) worker’s hourly rate, 2) manager’s salary, 3) price of menu items, and 4) price in groceries can be a difficult (if not fatal) balancing act.

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