On Friday, Hot Air posted an article about a new minimum wage in Los Angeles.
The article reports:
Los Angeles is hosting the 2028 Summer Olympics. The games were awarded to the city back in 2017 and since then it is preparing for the arrival of tens of thousands of visitors. They city was already struggling a bit because of the deadly wildfires which destroyed significant portions of two neighborhoods in January. The quote below is from The New York Times:
No one is suggesting that the Games be postponed or canceled in response to the fires. But there is rising concern that an already difficult endeavor for both Los Angeles, the main host city, and LA2028, the private committee in charge of raising most of the money and running the Games, has become staggeringly complicated.
Mike Bonin, a former City Council member who voted in support of the Olympics when the effort came before the Los Angeles governing body for approval in 2017, said the wildfires posed a “nightmare scenario.”
“It calls into question the city’s ability to deliver the Olympics,” he said in an interview. “This is cause for elected officials to ask themselves the question: Is this something we can handle?”
But there is another wrench in the works concerning hotel workers and the new minimum wage.
NBC Los Angeles reports:
The Los Angeles City Council gave final approval Friday to an ordinance that will increase the minimum wage for Los Angeles hotel and airport workers…
The vote authorized updates to the city’s Living Wage and Hotel Workers Minimum Wage ordinances, which regulate the minimum wage for such workers. Hotel and airport employees would receive $22.50 an hour starting in July under the amendments, followed by an annual $2.50 increase over three years…
Workers are expected to earn $25 an hour beginning July 2026, $27.50 an hour in July 2027 and $30 an hour in July 2028, as well as receive a new $8.35 per hour healthcare payment, which will begin July 2026.
How many hotels will be able to stay in business without serious increases in the price of rooms with the new minimum wage?
The article at Hot Air notes:
And that brings us back to the 2028 Olympics. In a last ditch effort to warn the city against this, a group of hotels have threatened to pull out of an agreement to provide discounted rooms for the Olympics.
…The city obviously can’t expect hotels to stick to rates negotiated when labor costs were half of what they will now be by 2028. If Bass approves this, she’s effectively asking the hotels to lose money on one of the biggest events in the city’s recent history.
…Presumably other hotels are now doing the math and could decide to back out of the deal. Will this lead to new negotiations for higher room rates? That seems like the most likely outcome but you never really know what might happen in LA.
That is not a reasonable minimum wage if you want hotels to stay in business.



