The Los Angeles City Council voted 11-3 on Tuesday to amend the Olympic Wage Ordinance, effectively delaying scheduled pay increases for specific hotel and airport workers. The move comes as part of a high-stakes compromise to secure the withdrawal of a ballot initiative that sought to eliminate the city’s business tax.
Under the revised schedule, workers are now slated to reach a $30 per hour wage by July 1, 2030. The original ordinance had targeted that same $30 hourly rate to be reached by the time of the 2028 Olympic and Paralympic Games. The new timeline sets intermediate increases at $25 per hour on July 1, 2027, $27.50 on July 1, 2028 and $29 on July 1, 2029.
A Contentious Compromise
The decision to delay the raises was met with significant internal opposition. Council members Eunisses Hernandez, Hugo Soto-Martinez, and Ysabel Jurado voted against the measure. Councilman Tim McOsker was absent for the vote, which proceeded without prior council discussion.
Members of Unite Here Local 11, who had championed the original wage ordinance, expressed strong disapproval of the delay. Some union members described the council’s decision as a “betrayal,” arguing that the pay increases were hard-won protections.
Business groups, however, framed the delay as a necessary adjustment. The LA Alliance for Tourism, Jobs and Progress, a coalition including the Central City Association, the LA Chamber of Commerce, and the Valley Industry Commerce Association, had successfully qualified their initiative for the ballot after submitting over 73,000 signatures. Proponents of the delay argued that the original wage ordinance could have forced businesses to cut jobs, reduce hours, or raise prices, potentially harming the local tourism industry.
What Comes Next
With the business tax initiative formally withdrawn, the immediate threat of a voter-led elimination of the city’s revenue source is removed. However, the labor-management divide remains deep. Future labor negotiations will be shaped by the frustration expressed by union members regarding this delay. While the wage schedule is now set through 2030, the city’s economic performance—specifically the status of hotels and tourism—may continue to influence the discourse surrounding worker benefits and business tax burdens.
Frequently Asked Questions
What is the new wage schedule for affected workers?
Workers are now expected to earn $25 per hour starting July 1, 2027, $27.50 by July 1, 2028, $29 by July 1, 2029, and $30 by July 1, 2030.
Why did the City Council agree to delay the wage increases?
The delay was part of a deal to ensure the withdrawal of a ballot initiative that sought to eliminate the city’s business tax, a measure that top city analysts warned would have devastated Los Angeles.
Which organizations supported the ballot initiative?
The effort was led by The LA Alliance for Tourism, Jobs and Progress, which included the Central City Association, the LA Chamber of Commerce, the Valley Industry Commerce Association, United Airlines, and the American Hotel and Lodging Association.
How do you think the city should balance the needs of labor groups with the concerns of local business owners in future negotiations?
