Los Angeles Council Delays $30 Minimum Wage for Hotel and Airport Workers

The vote postpones the final increase until January 2030 and blocks a business-backed ballot measure that would have repealed the city's gross receipts tax. Officials estimated the repeal would have removed $740 million from the general fund in the first year and an average of $860 million annually over five years.

Under the new timeline, wages will rise to $25 an hour in July, then increase in steps to $30 by January 2030. The council also delayed the start of higher healthcare payments, setting them at $4.25 an hour for hotel workers beginning July 1 and $8.15 an hour for airport workers in July 2027.

The council created a committee to examine possible changes to the business tax structure. The measure heads to a second vote next week because the 11-4 tally was not unanimous.

Business leaders and city officials reached the agreement after negotiations that began last week. The business coalition had gathered signatures for a November ballot measure targeting the gross receipts tax, which applies to many industries including entertainment, healthcare, and professional services.

“Imposing wages and benefits without bringing business to the table is not reasonable." — Nella McOsker, president and CEO of the Central City Association A labor leader representing hotel workers said the city had yielded to pressure from businesses.”

“They now have a playbook. The next time workers win something, they’ll threaten to blow up the city." — Kurt Petersen, president of Unite Here Local 11 Council President Marqueece Harris-Dawson said the outcome left no one fully satisfied but improved the city's position overall. Mayor Karen Bass stated the deal protects both fair pay for workers and the ability of businesses to continue operating and hiring.”

Four council members voted against the delay, including former labor organizer Hugo Soto-Martínez, who said he could not support taking money away from workers. Councilmember Imelda Padilla warned that repealing the gross receipts tax would leave the city without revenue for essential services.

A janitor at Los Angeles International Airport said workers would continue pressing for the original wage increase in 2028.