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Minimum wage hike for LA hotels another step closer
A contentious bill to almost double minimum wages in Los Angeles hotels has been given the go-ahead by a City Council committee.
The council’s Economic Development Committee have motioned that the state minimum wage of $8 per hour should be increased to $15.37 for non-unionized workers in the city’s hotels.
The proposal calls for the increase to be implemented in two stages, depending on the size of hotel affected.
The raise will come into effect for workers at hotels with a minimum 300 rooms by July 1, 2015 and for workers at hotels with 125 or more rooms the following year.
The proposal passed after a 21-12 vote in favor and will now go to the Assembly for approval.
California’s minimum wage across all industry sectors goes up to $9 an hour in July and increases again to $10 in 2016.
LA Mayor Eric Garcetti has said he would sign the law if the council approves it but industry groups have voiced concerns such as the Hotel Association of Los Angeles and Los Angeles Area Chamber of Commerce, predicting some hotel managers would have to lay off up to 20% of their workforce.
One LA councilman, Curren Price also called for a ‘hardship waiver’ for hotels which would find it difficult to pay the increased wages.
Data from the Economic Development Department says 43% of local hotel staff take home wages that officially puts them well below the federal poverty line.
If passed, the rule would affect around 60 hotels and 5,000 low-wage employees in the city, according to a 2013 report by nonprofit research group Economic Roundtable.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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