LA hotel workers will make $30/hour by '28 Olympics — thanks to new law that employers call 'economically disastrous.' Will LA be too pricey to visit?

Hotel workers hailed the law, signed by Mayor Karen Bass in May, as a long-overdue step toward fair pay in one of America’s most expensive cities, especially for the housekeepers and janitors who’ve struggled to keep up with skyrocketing living costs.

Supporters say the measure ensures workers can share in the profits from LA’s tourism boom, but opponents warn it could push hotel prices even higher, just as visitors pour in for some of the world’s biggest events.

Some say that higher pay for hotel workers is overdue

LA is preparing for nearly 180,000 out-of-town visitors for the 2026 World Cup and millions are anticipated for the 2028 Olympic Games. Tourism industry professionals expect profits to soar, but critics say the new wages will eat much of the revenue and could spark layoffs, drive up room rates and push tourists away during two of the most high-profile sporting events on the planet.

While the hotel minimum wage may sound high to Americans living in other cities, supporters of the increase say the law is a necessity. According to the MIT Living Wage Calculator, a single adult with no children in LA County needs nearly $28 to cover basic needs, a figure that far eclipses the state’s regular minimum wage.

“Hotel workers often live paycheck to paycheck and are frequently forced to work two or three jobs to provide food and shelter for their families. In many instances, they cannot take time to spend with their children or care for themselves or family when sick,” the ordinance reads. “They also rely on the public sector as a provider of social support services and, therefore, the City has an interest in promoting an employment environment that protects government resources.”

Critics push back

The law’s opponents and hospitality professionals say the wage hike could devastate the city’s tourism industry. Rosanna Maietta, CEO of the American Hotel & Lodging Association, called the law “economically disastrous” in a letter to Mayor Bass.

Those against the bill, many of whom formed a coalition to collect signatures to pause the increase, claim the new wages will raise already pricey room rates, cut deeply into tourism profits, force hotels to close and hurt businesses at tourism-adjacent venues, such as restaurants and bars.

Big events like concerts, conventions and festivals typically trigger dramatic price increases in nearby lodging. At the 2024 Super Bowl in Las Vegas, hotel prices surged 38% nine days out from the game, and during the 2024 Summer Olympics, Paris hotel rates soared 226%.