On May 23, 2025, the Los Angeles City Council approved an ordinance that will raise the minimum wage for hotel and airport workers to $30 an hour by July 2028. As reported by NBC4 Los Angeles’ Jonathan Lloyd, the plan will begin with a jump to $22.50 in July 2025 and increase annually by $2.50 until it hits the final target. The bill passed with an 8-3 vote and now awaits Mayor Karen Bass’s signature. While labor advocates celebrated, hotel operators warned the change could bring devastating consequences for local businesses.
Historic Victory for Workers
Supporters of the wage hike, including labor unions like Unite Here Local 11, called the ordinance a major win for working-class Angelenos. “City leaders have an opportunity to ensure the Olympic and Paralympic Games benefit hard-working Angelenos,” co-president Kurt Petersen told KTLA’s Marc Sternfield. Many workers expressed relief and joy, having pushed for the increase for nearly two years. “It’s like a weight lifted off,” one worker said. The $30 milestone will be the highest minimum wage in the country for this sector.
Employers Warn of Collapse
But behind the scenes, employers are panicking. Hoteliers say they’re already stretched thin, and that the city’s decision could put them over the edge. KTLA’s Marc Sternfield reported that at least eight hotels, including the Hollywood Roosevelt and Hilton, are threatening to withdraw from their agreements to provide discounted rooms for the 2028 Olympics. These deals had been locked in to accommodate Olympic officials, sponsors, and media. Now, business owners claim rising labor costs are simply “financially unfeasible.”
Olympic Dreams in Danger
The timing of the wage hike is also sparking controversy. The law’s final $30 mark is scheduled to take effect just before the 2028 Summer Olympics, which are expected to draw millions to the city. According to Sternfield, hotel operators say the city may be undermining its own Olympic strategy by raising wages so close to the event. “If the city continues down this path… there will be hotel closures, lost jobs and lost opportunities for all,” warned Kara Bartelt, general manager of Hoxton Los Angeles.
The Math Behind the Mandate
Financial analyst and YouTuber John Williams broke down the numbers in his recent video. According to Williams, a $30/hour wage plus the new $8.35/hour healthcare payment means a single full-time worker will cost an employer over $79,000 annually, before taxes and benefits. “That’s $62,400 in wages and $17,000 in health care per worker,” he said. For large hotels employing hundreds, the price tag quickly reaches into the millions.
Automation: The Inevitable Response?
Williams also warned that higher wages could fast-track automation in the hospitality industry. “Robots don’t ask for raises, and they don’t go on strike,” he noted. Already, some hotels in Japan and New York use automated luggage handlers, check-in kiosks, and robotic cleaning crews. With LA’s wage law now in motion, business owners are reportedly investing in the same technologies or moving their operations to more affordable states like Texas or Nevada.
Canceled Projects and Quiet Departures
In the weeks following the council vote, at least one major hotel project was canceled. Williams reported that a Hilton near Universal Studios scrapped its $250 million expansion plan and began pulling out of Olympic-related deals. More developers are rumored to be reconsidering investments in Los Angeles. “Orlando, Dallas, and Vegas are quietly scooping up hospitality dollars that would’ve gone to LA,” Williams said, warning that the city may soon face a wave of economic flight.
Workers Celebrate, But Know the Risks
Still, many workers see the wage hike as long overdue. “If we want people to work at these hotels and at the airport, we need to pay them enough to live here,” one supporter told NBC4. In a city where rents continue to skyrocket, advocates say the wage increase is necessary just to survive. However, Williams raised an uncomfortable truth: many low-wage workers now hold two or even three jobs to make ends meet. “Raising the minimum wage doesn’t guarantee a single job will be enough,” he said.
Generational Divide Over Fair Pay
This battle is becoming generational. Older hotel executives, still recovering from the pandemic and recent wildfires, say the increases are unrealistic. Younger workers and activists argue that stagnant wages are no longer acceptable in a city as expensive as LA. As Williams noted, this is more than a wage debate – it’s a fight over what the future of work should look like in the age of AI and automation.
Will Other Cities Follow?
Seattle and Chicago are already exploring similar wage increases for hospitality workers. If Los Angeles succeeds in pulling off this policy before the Olympics, it could set a national precedent. But if it fails – through business closures, staffing cuts, or skyrocketing room prices – other cities may back away. “This could become a blueprint, or a warning sign,” Williams said. “Either way, the country is watching.”
A Well-Intended Gamble
There’s no denying the heart behind this decision. LA’s city leaders want to make sure those who serve the city – housekeepers, bellhops, airport staff – aren’t left behind. And for once, these workers are getting a seat at the table. But noble intentions don’t always lead to perfect results. The costs may be greater than expected, especially if tourism revenue doesn’t match labor demands. It’s one thing to raise pay. It’s another to make sure the jobs still exist when the dust settles.
A Ticking Clock to 2028
As the Olympics approach, LA is racing to modernize – high-speed trains, new housing, and now, a higher minimum wage. But some businesses may not make it to the finish line. As John Williams puts it, we’re walking the line between valuing people and replacing them. LA’s $30/hour gamble could reshape how cities handle wage laws – or it could be the spark that accelerates job loss in the very industries it’s meant to protect.
Mark grew up in the heart of Texas, where tornadoes and extreme weather were a part of life. His early experiences sparked a fascination with emergency preparedness and homesteading. A father of three, Mark is dedicated to teaching families how to be self-sufficient, with a focus on food storage, DIY projects, and energy independence. His writing empowers everyday people to take small steps toward greater self-reliance without feeling overwhelmed.