On May 27, 2025, Los Angeles Mayor Karen Bass signed a set of amendments to local wage and employment ordinances impacting Hotel Workers in preparation for the 2028 Olympic Games being hosted in Los Angeles. These amendments, collectively referred to as the “Olympic Wage Ordinance” provide sweeping new requirements for employers in the hotel industry, most critically a graduated increase in the minimum wage from July 1, 2025, through July 1, 2028, topping out at $30.00 per hour for Hotel Workers in the City of Los Angeles. In addition, the new law imposes a requirement that Hotel Employers provide health benefits to Hotel Workers. Those who fail to provide sufficient benefit expenditures on behalf of their employees must pay further increased wages to make up the difference.
Minimum Wage Increase
The amended Minimum Wage Ordinance includes a marked increase to Hotel Workers’ minimum wage, which will increase annually on July 1 of each year, as follows:
Date
Hourly Wage (with Health Benefits)
July 1, 2025
$22.50
July 1, 2026
$25.00
July 1, 2027
$27.50
July 1, 2028
$30.00
July 1, 2029+
Indexed to CPI-W (Los Angeles area)
This legislation includes broad definitions and applies to hotel contractors, as well as direct hotel owner/operators. Critically, it defines a “Hotel Worker” as
“any person whose primary place of employment is at one or more Hotels and who is employed directly by a Hotel Employer or by a person who has contracted with the Hotel Employer to provide services at a Hotel.”
It goes on to define “Hotel Employer” as
“…any person who owns, controls, or operates a Hotel in the City and includes any person or contractor who, in a managerial, supervisory, or confidential capacity, employs or directs Hotel Workers to provide services at a Hotel….”
Employers who contract to provide services on-site at Hotels (such as private security services) within Los Angeles City limits are impacted by this legislation.
Minimum Healthcare Expenditure
These amendments also impose a requirement for Hotel Employers to provide healthcare benefits to their Hotel Employees at fixed amounts. These rates are scheduled to adjust for inflation each year in April. They are currently set at $7.65 per hour. Employers who do not provide health benefits, or whose total benefit contribution on behalf of their Hotel Employees is less than this amount must make up the difference in the form of additional wages.
Citywide Minimum Wage Increase
In addition to the Olympic Wage Ordinance, the City of Los Angeles has also announced its annual increase to the minimum wage for all Los Angeles employers operating within City limits. The new minimum wage will increase to $17.87 per hour effective July 1, 2025.
Employer Takeaway
These increases to the minimum wage and the imposition of benefit requirements on employers will represent substantial increases in labor costs across Los Angeles for employers involved in the Hotel industry, including those who contract to provide services on-site at hotels like private security companies. This legislation imposes significant civil penalties and fines, in addition to prevailing party’s attorney’s fees to enforce. If you have any questions about how this new law may affect your business or need assistance preparing compliant policies or revising your practices or policies, please contact your attorneys at Bradley, Gmelich + Wellerstein LLP. We are here to help.
About the Author
Jaimee K. Wellerstein, Esq. is a Partner and the firm’s Employment Team Head. Representing employers in all aspects of employment law, Ms. Wellerstein collaborates with her clients to develop proactive business and legal strategies to try to avoid workplace conflict and employment disputes. She provides legal advice and counsel to numerous businesses, including conducting individualized training programs for both management and employees. Ms. Wellerstein performs internal audits of her client’s employment practices to ensure compliance with the rapidly-changing world of employment laws and guides investigations of employee allegations regarding harassment, discrimination, and employee misconduct.
When litigation is unavoidable, Jaimee K. Wellerstein aggressively defends her clients against employment law claims in the state and federal courts, as well as at administrative hearings, arbitrations, and mediations. Having defended numerous representative and individual lawsuits on behalf of her clients, Ms. Wellerstein is a skilled litigator and negotiator with a broad spectrum of experience upon which to draw.
A frequent speaker on numerous topics, including employment law and contract law, Ms. Wellerstein regularly conducts training seminars and programs for managers and employees in all areas of employment practices and policies.
About the Author
Michael J. Bruskin, Esq. is Special Counsel for the firm’s Employment Team Advice & Counsel Practice Group. Advising employers in all aspects of employment law, Mr. Bruskin develops deep relationships and working knowledge of his clients’ operational preferences and devises forward-thinking strategies to align business needs with risk mitigation and legal compliance. Mr. Bruskin performs internal audits of his client’s employment practices to ensure compliance with the rapidly changing world of employment laws and guides their employment and business strategies to create successful and lasting relationships with their employees.
About the Author
