Los Angeles Passes New $30 Minimum Wage For Hotel And Airport Workers

Los Angeles is implementing a $30 minimum wage for hotel and airport workers by 2028, including $8.35 in mandated benefits, resulting in a nearly $40 effective wage. This significant increase is projected to eliminate 15,000 jobs and cause substantial economic losses, including decreased tax revenue and halted construction spending. Eight hotels have withdrawn from Olympic room agreements due to the unworkable economics. A hotel development creating 395 rooms was canceled, further impacting the city's Olympic preparations and tourism revenue. Los Angeles already faces a $1 billion budget deficit, exacerbated by reduced tourism and job cuts. The hotel union dismisses concerns, despite losing 10,000 members last year, and threatens a strike before the Olympics. Investors are avoiding Los Angeles's hotel market due to the new law's economic impact. The article suggests conditioning federal aid on a moratorium on such mandates to protect taxpayer dollars. The author concludes that cities often misuse funds and continue harmful practices regardless of assistance. The escalating minimum wage debate, now reaching $30 plus benefits, is likely to spread beyond Los Angeles.