Los Angeles, CA, Increases Minimum Wage for Airport and Hotel Employees

What happened?

On December 11, 2024, the Los Angeles City Council approved an order for the City Attorney to prepare legislation for a gradual increase in the minimum wage.  

Overview:

The Los Angeles City Council approved a plan to increase the minimum wage for tourism workers to $30 per hour by 2028, along with enhanced health care benefits. This update impacts airport and hotel employees within the city and healthcare benefit payment.  

• The changes will necessitate updates to the LWO and the Hotel Workers Minimum Wage Ordinance (HWMO), with further revisions expected from the City Attorney’s Office.  
• The wage increases will be implemented 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 
• The plan includes enhanced health care benefits, with a health payment of $8.35 per hour starting July 1, 2025.  
• The motion allows employees or their representatives to file a civil action for violations of the LWO or HWMO if the employer does not address the alleged violations within 30 days of receiving written notice. 
• Employers at LAX and covered hotels should prepare for these changes and anticipate further legislative action before the first wage hike on July 1, 2025. 

Additional Details:

• Currently, Los Angeles city airport workers earn $19.28 per hour with health benefits, or $25.23 per hour without health benefits.  
• For Airport workers, the motion introduces a “hardship exemption clause” for concessionaires with 50 or fewer employees at Los Angeles International Airport (LAX) under a lease in effect at the time of the ordinance’s passage, similar to the Los Angeles Hotel Worker Protection Ordinance. 
• Workers at hotels with 60 or more rooms earn $20.32 per hour. 
• Under the Living Wage Ordinance (LWO), hotel workers’ health care benefits will be governed by the same system as airport workers’: if an employer’s health benefit payment falls short, the difference must be added to the employee’s hourly wage. 
  • The new minimum wages will apply to hotels with 60 or more guest rooms under the HWMO.  
  • The healthcare benefit payment will be adjusted annually. 

Source References

• LA Living Wage Ordinance (LWO) Amendment
• LA Meeting, Agenda, Video of Session, and More

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.