LA’s Minimum Wage Hike Could Destroy One Of Its Biggest Industries

Los Angeles’ minimum wage hike for workers in the tourism industry could potentially do more harm than good.

In May, the Los Angeles City Council approved minimum wage increases for employees in the tourism industry. The municipal ordinance requires hotels in Los Angeles to gradually increase their hourly minimum wage each year until it reaches $30 in 2028.

The move has drawn significant pushback from Los Angeles businesses, including a coalition of hotel owners announcing a petition in June to fight back against the minimum wage hike, citing concerns over job losses and other “dire” economic consequences, Fox Business reported. The petition has collected over 140,000 signatures, surpassing the 93,000 signatures needed to put the initiative on California’s 2026 ballot, so residents will now have the ability to vote to revoke the ordinance in 2026, according to the outlet.

Will Swaim, president of the California Policy Center, told the 🏢Daily Caller News Foundation that if the minimum wage increase is implemented, it could result in problems such as hotels reducing hours for their employees, layoffs and rising labor costs.

“The misconception — advanced by the union that backed this initiative — is that hotels will pay this out of their profits,” Swaim told the DCNF. “They won’t. Hotel owners and operators will follow the familiar path blazed by all businesses in the face of arbitrary increases in the minimum wage: They’ll raise their rates – and that will drive away lower-income visitors and reduce the need for labor. Hoping to reduce labor costs, they’ll turn to automation and find other labor-saving efficiencies. That will lead to reduced hours for employees and even layoffs. Finally, unable to bear the sudden rise in labor costs, many hotels will become rundown, or will close or sell off to larger corporations – a centralization of ownership that will make the industry less competitive.”