By: Olympic Wages Approved by Los Angeles City Council
As a present to organized labor, the Los Angeles City Council voted to approve a draft of the “Olympic Wage Ordinance” that, when finalized, will have a profound impact on the City’s hotel industry–an industry experiencing an unexpected spike in demand resulting from the tragic realities of persons recently displaced by the wildfires.
The ordinance is designed to incrementally increase minimum wages for certain hotel (and other) workers by $2.50 per year until a $30/hour wage is achieved by July 2028, when the Olympics are set to begin:
- $22.50/hour eff. July 1, 2025
- $25.00/hour eff. July 1, 2026
- $27.50/hour eff. July 1, 2027
- $30.00/hour eff. July 1, 2028
In addition to wage increases, the ordinance also will increase healthcare benefit payment entitlements.
The ordinance will cover employees at Los Angeles hotels with 60 or more rooms, as well as other workers in the tourism industry, concessions, airport workers, and various others. It will also include a right-to-cure provision that requires employees to give employers advance written notice of violations of the ordinance and 30 days to cure the alleged violation before filing an administrative charge or court complaint.
Presumably, the City Council’s plan was to finalize the draft into formal law in early 2025 before the planned July 2025 wage increase. It is unclear if the impact of the wildfires will change those plans or change the ordinance in any way. Los Angeles employers in the hotel and tourism industries should keep an eye on the Olympic Wage Ordinance and the City Council’s related actions over the next few months to make sure they are prepared and compliant when the inevitable changes do come. Of course, you may contact the author of this blog or any CDF attorney for up-to-date information and guidance.