Seyfarth Synopsis: The 2028 Los Angeles Olympics is already bringing change to the city. On December 11, 2024, the Los Angeles City Council voted 12-3 to approve a draft ordinance to amend the Living Wage Ordinance and the Hotel Worker Minimum Wage Ordinance in 2025. If the City Council approves of the City Attorney's draft ordinance, the proposed wage increases will make a splash across the tourism industry leading up to the Games.
The ordinance, dubbed the "Olympic Wage Ordinance," would amend the Los Angeles Living Wage Ordinance (LWO) and the Hotel Worker Minimum Wage Ordinance (HWMO) to increase minimum wages for eligible employees incrementally each year up to $30 per hour by July 2028, just in time for the 2028 Los Angeles Olympics.
Who On The Team Is Covered?
The proposed Olympic Wage Ordinance would cover many Los Angeles tourism workers, including concessionaires, skycaps, and cabin cleaners, among others. Employees at hotels with at least 60 rooms would also benefit from the Ordinance.
Minimum Wage Timeline
Under the proposed ordinance, eligible employees will take the gold with a minimum wage of $30 by 2028.
The Olympic Wage Ordinance would increase hotel and airport workers' minimum wage by $2.50 each year as follows:
- $22.50 an hour on July 1, 2025
- $25.00 an hour on July 1, 2026
- $27.50 an hour on July 1, 2027
- $30.00 an hour on July 1, 2028
Healthcare Benefits
Beginning July 1, 2025, eligible airport workers would also receive an increase in healthcare payments from the current $5.95 per hour to $8.35 per hour. Eligible hotel workers would be granted the same healthcare payment. The healthcare benefit payment will increase each year on July 1 with new rates announced on April 1. Under the draft Ordinance, the healthcare benefit payment will increase proportionately by the percentage increase in the California Department of Managed Healthcare's Large Group Aggregate Rates report of each year, if at all.
Hardship and Right-to-Cure
The Olympic Wage Ordinance includes a hardship exemption clause to the LWO for concessionaires with 50 or less employees at LAX who already have a lease at the time of the passage of the ordinance. However, there is currently no exemption for covered hotels.
The proposed Ordinance also includes a right-to-cure provision. An employee can only file a complaint if (1) the employee first provided written notice to the employer outlining the alleged violations; and (2) the employer takes no action to cure the alleged violation within 30 days of receipt of the written notice. If the employer does not take sufficient timely action, the employee can then file an administrative complaint with the Los Angeles Office of Wage Standards or in court.
Workplace Solutions
While there is not a formal Olympic Wage Ordinance yet, it is anticipated that it will be finalized in early 2025—in time for the July 1, 2025 increase. If approved, the Ordinance will have a significant impact on Los Angeles' tourism workforce. Employers should reach out to their favorite Seyfarth attorney to help prepare to comply with the new wage and benefits rules by July, and check back with us here at CalPeculiarities for more developments in this area.
Edited by: Cathy Feldman
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