In response to the Los Angeles City Council approving an increase of the minimum wage for hotel and airport workers, bowing again to the pressure from organized labor unions. The Los Angeles County Taxpayers Association, LATax, condemns this council action and calls on Mayor Bass to reverse the decision. LATax released this statement:
The Los Angeles City Council’s 12–3 vote to raise the minimum wage for hotel and airport workers to $30 per hour by 2028 is a reckless move that threatens to destabilize the city’s already fragile economy. The Los Angeles County Taxpayers Association (LATax) condemns this decision as a short-sighted political gesture that prioritizes union interests over the long-term health of our tourism and hospitality sectors.
“This is not economic justice—it’s economic malpractice,” said LATax Chairman Aidan Chao. “At a time when international travel is down, hotel occupancy is uncertain, and the city faces a $1 billion deficit, the Council has chosen to impose a 48% wage hike on one of LA’s most vulnerable industries. This will cost jobs, stall investment, and drive hospitality businesses out of the city.”
The ordinance mandates that hotels with 60 or more rooms and private employers at LAX raise wages to $22.50 this July, then incrementally to $30 by 2028. It also requires an additional $8.35 per hour in healthcare payments starting in 2026. This comes as hotel operators report declining tourism from key international markets like Canada and the UK, exacerbated by federal trade tensions and visa restrictions.
Already, the fallout is evident. Sun Hill Properties, owner of the Hilton Universal City, has announced it will cancel a $250 million expansion and withdraw from its Olympic room block agreement if the ordinance proceeds. Other hotel operators are preparing to shutter restaurants, eliminate valet services, and lay off staff. Some are considering exiting the LA market entirely.
“This is a warning shot to every investor: LA is closed for business,” Chao said. “When you punish job creators with unsustainable mandates, you don’t lift workers up—you push them out.”
LATax urges the City Council to reverse course before the damage becomes irreversible. We call on Mayor Karen Bass to veto this ordinance and convene a task force of business leaders, economists, and labor experts to develop a sustainable path forward. The city cannot afford to gamble its economic future on policies that sound good in press releases but fail in practice.