'Utterly unaffordable': Study reveals how deep blue city's minimum wage law is ravaging key industry

'Utterly unaffordable': Study reveals how deep blue city's minimum wage law is ravaging key industry

Source: Fox News

Summary

Los Angeles Mayor Karen Bass signed a law that will raise the minimum wage for hotel and LAX airport workers to up to $30 per hour by 2028. The Hotel Association of Los Angeles (HALA) commissioned a study that found hotels have eliminated or expect to eliminate 6% of positions, roughly 650 jobs, since the law took effect in September 2025. HALA President Dr. Jackie Filla stated that the law has resulted in job losses, reduced hours, and increased costs for hotels.


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As expected, the matter has reached another stage.

The law has already resulted in a pay increase to $22.50 per hour in July 2025, and will continue to increase incrementally until it hits $30 in July 2028. Dr. Jackie Filla is urging elected officials to make “amendments” to the ordinance to ease the burden on the hospitality industry. The study found that a significant number of the jobs lost have been labor-intensive positions like food and beverage, housekeeping, and parking. The impact extends beyond hotel payrolls to subcontractors operating on hotel properties. Hotels reported that two-thirds of third-party providers plan to raise prices to offset wage increases, and one in five plan to cancel hotel contracts altogether.

The ritual of wage hikes and job losses continues, with each side playing their familiar roles.


Author: Evan Null