Los Angeles, California – A significant labor initiative aimed at substantially increasing the minimum wage for hotel workers in the City of Los Angeles has been put on hold. The suspension follows the successful submission of a referendum petition to the City Clerk’s office on June 27, 2025.
Ordinance Details and Initial Passage
The ordinance, which had received approval from the Los Angeles City Council, mandated a $30 minimum wage for employees in the city’s hotels. This new wage floor was not a one-time change but was structured to increase incrementally by $2.50 annually until it reached its full implementation level in 2028. Beyond just the wage, the ordinance also incorporated crucial provisions for healthcare benefits and required training for hotel workers, aiming to improve overall compensation and working conditions within the sector.
Provisions of the ordinance were initially scheduled to commence on July 1, 2025. However, with the suspension now in effect, certain aspects planned for that date are currently stalled.
The Referendum Effort
The challenge to the ordinance emerged in the form of a referendum petition. Reports indicate that the American Hotel and Lodging Association (AHLA) spearheaded the petition drive. This effort proved successful, reportedly gathering over 140,000 signatures. This figure significantly cleared the threshold required under city law to qualify the measure for a public vote.
Upon successful certification of the petition signatures by the City Clerk, the ordinance will be formally placed on the ballot. This is anticipated to occur during the 2026 elections. The suspension means that the approved ordinance will remain inoperative until it is either approved by the voters in an election called by the City Council or, conversely, if the submitted petition is ultimately deemed insufficient upon verification.
Immediate Impact on Wages
While the more ambitious $30 minimum wage increase and related benefits are on hold due to the referendum process, hotel workers in Los Angeles are still set to see a wage adjustment. According to the original ordinance, the hotel worker minimum wage is scheduled to increase to $21.01 effective July 1, 2025. Furthermore, there is a potential for this rate to rise further to $22.50 for employees at hotels with 60 or more rooms, provided that related amendments discussed in the context of the original ordinance take effect as planned.
The Path Forward
The future of the $30 minimum wage and the associated healthcare and training requirements for Los Angeles hotel workers now largely rests with the electorate. If the City Clerk’s office certifies that the petition contains the requisite number of valid signatures, the measure will proceed to a public vote in 2026. Should voters approve the ordinance, it would then take effect. Conversely, if the petition is deemed insufficient – failing to meet the signature threshold upon verification – the ordinance would automatically take effect the day following such a determination.
This development highlights the dynamic interplay between legislative action by the Los Angeles City Council and direct democratic challenges initiated by stakeholders impacted by new regulations. For hotel workers, it introduces uncertainty regarding a previously anticipated significant improvement in wages and benefits, while for the hotel industry, it represents a successful initial step in challenging the implemented measure.
