Employment

Raises for tourism workers in LA: What we know about the $30-an-hour minimum wage in Los Angeles

LA plans to raise tourism worker wages to $30/hr by 2028, despite industry pushback and short-term tourism dip; recovery expected by 2026.

Gary Cameron | REUTERS
Maite joined the AS USA in 2021, bringing her experience as a research analyst investigating illegal logging to the team. Maite’s interest in politics propelled her to pursue a degree in international relations and a master's in political philosophy. At AS USA, Maite combines her knowledge of political economy and personal finance to empower readers by providing answers to their most pressing questions.
Update:

Leaders in Los Angeles are weighing a proposal to raise the minimum wage for certain tourism and hospitality workers to $30 an hour.

As of January 1, 2025, the minimum wage for hotel and airport workers in LA increased to $22.50. Thanks to a city ordinance, that rate is set to rise gradually, reaching $30 an hour by 2028.

The ordinance was passed after the city broke tourism records and anticipated continued growth, especially with LA set to host several 2026 FIFA World Cup matches and the Summer Olympics in 2028. However, business associations have voiced strong opposition to the planned wage hikes. Their concerns are backed by research from the nonprofit Visit California, which released forecasts in May projecting a 9.2% drop in statewide tourism this year.

Still, Visit California expects tourism levels to rebound in 2026, return to pre-Trump-era levels by 2027, and continue climbing through 2028. Of course, not all of these tourists will visit Los Angeles, but they provide critical insights into overall travel trends within the Golden State. The forecasts suggest that while the private sector may face short-term challenges, the industry is likely to recover before the full $30 wage takes effect. Additionally, although the number of visitors is not expected to surpass that seen in 2024, the amount of money they will spend in 2025 is projected to be greater.

Which workers will be impacted by the minimum wage increase?

For airport and hotel workers, the steady increase in the minimum wage applies to workers whose employer offers healthcare benefits. They will see the following increases:

  • Beginning on July 1, 2025, the wage rate for an Employee shall be no less than $22.50 per hour.
  • Beginning on July 1, 2026, the wage rate for an Employee shall be no less than $25.00 per hour
  • Beginning on July 1, 2027, the wage rate for an Employee shall be no less than $27.50 per hour.
  • Beginning on July 1, 2028, the wage rate for an Employee shall be no less than $30.00 per hour
  • Inflation adjusted after 2029

Airport workers who don’t receive healthcare benefits through their employer will also see a pay bump, with the ordinance granting a $7.65 per hour increase this year. Moving forward, annual adjustments will be tied to various state-level economic indicators. Hotel workers without employer-provided healthcare will also see their hourly rate rise, with increases determined according to the guidelines outlined in the ordinance.

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When passing the new wage requirements, city officials noted that wages in these sectors had not kept pace with inflation. They also cited studies showing that raising the minimum wage often leads to increased productivity within the industry. Leaders pointed to rising housing insecurity among workers, with a growing number unable to afford healthcare due to low wages.

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