Committee approves amended hotel-worker wage package, delays health benefits start and narrows training rule

The Los Angeles City Economic Development and Jobs Committee on Tuesday received and filed reports from the Chief Legislative Analyst, Bureau of Contract Administration and Los Angeles World Airports and asked the city attorney to amend the draft hotel-worker ordinance to delay the start of employer-provided health benefits and to limit a housekeeping training requirement to hotels with 60 or more rooms.

The committee, chaired by Councilmember Hugo Price, voted 3-1 (one member absent) to approve the package as amended and instructed the CLA to return a six-month report on the ordinance’s effects on the tourism industry, including available data on business closures, job losses, hardship-exemption applications and transient-occupancy-tax projections.

The action sends an amended draft back to full City Council for consideration. The committee’s motion, introduced by Price, asked the city attorney to change the health-benefits start date in the draft ordinance from July 1, 2025, to Jan. 1, 2026, and to revise the ordinance’s definition of “hotel” so that certain training requirements apply only to properties with 60 or more rooms.

Why this matters: The ordinance—often described in public testimony as an "Olympic wage" measure because of upcoming major events—would raise wages and provide health benefits for hotel and tourism workers in Los Angeles. Supporters said the change will reduce poverty and vulnerability among largely immigrant workers; opponents warned the package could push small hotels and airport concessionaires into layoffs or closures amid weak international travel and a city budget shortfall.

Workers, union representatives and some clergy packed the hearing to urge passage. Sandra Diaz, vice president of UNITE HERE/United Service Workers West, told the committee, “When I think of the toughest moments of this city, I think of our members. ... They’ve been heroes of this city, and I think today marks a path towards justice for them.” Angelina Jimenez, a leader with ACE, warned that hotel workers are essential to the city’s hospitality economy and urged a yes vote. Several airport and hotel employees described difficulty affording rent, health care and other basics and said the wage and benefit increases would materially help their families.

Industry representatives and business groups cautioned the committee that the local tourism economy is still recovering. Jackie Fila, CEO of the Hotel Association of Los Angeles, said occupancy at many properties has not returned to pre-pandemic levels and warned the proposal could increase costs for operators that have not recovered. Greg Plummer, CEO of Concord Collective, said his airport concession business had already laid off staff and that rising costs could further strain small operators’ ability to provide health benefits.

City officials and analysts described the local tourism picture as mixed to weak. Kim Nakashima, director of policy and research for City Tourism, said major hotel and visitation metrics remain below pre-pandemic levels and that transient-occupancy-tax collections are below budget for the current year. John Ackerman of Los Angeles World Airports said bookings from Canada, China and parts of Europe are down and that LAX does not expect a return to pre-pandemic traffic levels until 2028 or 2029. Henry Flatt, the CLA staffer who led stakeholder outreach, said he met “between 30 and 50” industry representatives and relayed concerns that the Responsible Hotel Ordinance and new requirements have increased operating costs.

Committee members debated timing and program design. Councilmember Tracy Park voted against the amended motion, saying the ordinance in its current form should not move forward given recent data showing a fragile tourism recovery and a nearly $1 billion budget shortfall. Other members, including Chair Price, said a measured amendment and a six-month review gives the council a chance to monitor outcomes and adjust policy if harms appear.

The committee’s instructions require the city attorney to return an amended draft ordinance to full Council and require the CLA to report to the committee within six months on measurable tourism impacts, including any market analyses, closures, job losses, hardship-exemption filings and TOT projections. The committee also clarified its intent that the public-housekeeping training requirement be limited to hotels with 60 or more rooms; the city attorney and staff agreed to revise the draft language accordingly.

The item was taken from the special meeting agenda amid an extended public-comment period; the committee approved consent items 2 through 9 before returning to the hotel-worker item. With the committee’s approval, the amended ordinance and related reports will now go to the full Los Angeles City Council for further action.