Los Angeles City Council approves hotel and airport worker wage package as amended; second reading set for May 23

The Los Angeles City Council on Wednesday approved an amended package of measures updating wage and health-benefit rules for hotel and airport workers, concluding a day of extended public comment and multiple floor amendments. The measure passed 12-3 and will return for a mandatory second reading on May 23, 2025.

Councilmembers and labor and business representatives framed the debate around two competing concerns: raising wages and health coverage for tourism-sector workers before major international events, and sustaining a fragile tourism economy that several industry witnesses said is already showing declines.

The Council heard more than an hour of public comment focused on the item. Jessica Durham, director of the Tourism Workers Rising coalition, urged passage: “It's because it's good for our city and it's good for our economy,” Durham said, noting studies she said show higher worker pay circulates in the local economy. Dozens of hotel and airport workers who said they earn low hourly pay and have difficulty affording housing and medical bills also addressed the chamber.

Industry witnesses and the city's tourism contractor described a different picture. Adam Burke, president and CEO of the Los Angeles Tourism and Convention Board, said the sector faces multiple headwinds including wildfire-related misperceptions and drops in international travel: “Research conducted by VISIT California found that the average American traveler believes that 41% of Los Angeles was damaged by the fires. The real number is less than 2%,” Burke said, adding that lower visitation and longer visa wait times are already reducing hotel occupancy and related spending.

Burke cited an Oxford Economics analysis presented to the Council that city staff and industry representatives summarized on the record: a $30-per-hour ordinance, as modeled in the study, could reduce annual local business sales by about $2.3 billion, lower local tax revenue by about $55 million and eliminate nearly 15,000 jobs on an annualized basis. Council members cited those figures in arguing for amendments intended to reduce near-term budgetary and economic shock.

Council action and amendments

Councilmembers approved a package of amendments and substitute motions that changed the ordinance's timing, health-benefit language and some implementation details. Key steps taken on the floor included: - Amendment 5e (Padilla, McCosker, Yaroslavsky) — changed rules on the public housekeeping certificate and training; passed, 15-0. - Amendment 5d (Hutt, Price) — passed, 12-3. - Amendment 5c (Lee, Rodriguez, Park) — referred to committee for further refinement (authors requested further drafting and study of definitions affecting restaurant/contracted workers inside hotels). - Substitute motion 5b (Harris-Dawson, Grama for Yaroslavsky) — passed, 15-0; it adjusted timing and some cost phases from earlier proposals. - Amendment 5a (Lee) — failed, 5-10 (would have changed the limited-service/hotel-room threshold). - Amendment 5f (Rodriguez, Padilla, Lee, Price, Yaroslavsky) — added directed reportbacks on industry impacts; passed, 15-0. The Council instructed the City Administrative Officer/CLA to report before and after implementation (6- and 12-month milestones) on the tourism industry impacts. - Amendment 5g (Nazarian) — as amended on reconsideration, inserted a cash-in-lieu waiver structure for employees who can demonstrate alternative health coverage; passed on the amended language, 13-2.

After those changes, the assembled ordinance package was approved by the Council 12-3. Council staff and the city attorney will finalize the ordinance text and post the updated version; because the vote was not unanimous the item will return for second reading on Friday, May 23, 2025.

Discussion highlights and enforcement capacity

Supporters of a higher wage said additional pay and employer-provided benefits would reduce hardship for tens of thousands of tourism workers and increase local spending. Testimony from hotel and airport employees described long hours, low pay and reliance on public benefits; several speakers noted they had lost housing or were supporting sick family members.

Opponents — including representatives of the Los Angeles Area Chamber of Commerce, BizFed and the Los Angeles Tourism and Convention Board — warned that higher labor costs amid declining visitation could force cuts, layoffs or closures. Alec Mastropian of BizFed said the city faces a nearly $1 billion budget gap and more than 1,600 proposed layoffs, and cautioned about adding enforcement obligations the city lacks resources to fulfill.

John Riemer, director of the Bureau of Contract Administration (BCA), told the Council that the amended ordinance expands enforcement responsibilities for BCA and that staff requested funding and positions: one compliance program manager, three management analysts and one data analyst to administer waivers, investigate complaints and run educational and certification programs.

Health benefit and waiver language

One floor amendment added a cash-in-lieu option for workers who prove they have alternative health coverage (for example, enrollment through a spouse, parent, Medicare or VA benefits). Under the amendment, full-time employees (as defined under the Affordable Care Act) who opt out would be eligible for the specified cash amount; part-time workers would receive a smaller cash amount. The Council also approved language preserving the authority of the designated administrative agency to process waivers and to maintain enforcement steps.

Next steps

City attorneys and staff will prepare the final ordinance language reflecting the approved amendments and the waiver mechanics; the council president said the item will return for second reading and final adoption on May 23, 2025. Council members also asked for periodic CLA/CLA and BCA reports in the months before and after implementation to track industry metrics, jobs, revenue and enforcement workload.

Votes at a glance: selected roll calls included on the record

- Amendment 5e (Padilla/McCosker/Yaroslavsky): PASSED, 15-0. - Amendment 5d (Hutt/Price): PASSED, 12-3. - Amendment 5a (Lee) — threshold change for limited-service hotels: FAILED, 5-10. - Substitute 5b (Harris-Dawson/Grama): PASSED, 15-0. - Amendment 5f (Rodriguez et al.) reportbacks: PASSED, 15-0. - Amendment 5g (Nazarian) final amended waiver language: PASSED on amended text, 13-2. - Final vote on Item 5 as amended (ordinance package): APPROVED, 12-3; item to return for second reading May 23, 2025.

Why it matters

The ordinance would reshape pay and benefit expectations for workers in hotels and at Los Angeles International Airport and other tourism sectors the city identifies as covered. Proponents say it will raise incomes for low-paid workers and generate local economic activity; opponents warn it risks job losses or business closures if cost increases outpace demand. Council direction to study impacts and the second reading will give members additional opportunity to revise details before final adoption.

— Reporting by the Los Angeles City Council chamber transcript and staff reports; quotes and attributions are drawn from council proceedings on May 14, 2025.