Los Angeles, CA – A significant planned increase to the minimum wage for hotel workers within the City of Los Angeles has been abruptly put on hold, following a successful push by hospitality and tourism groups to potentially overturn the measure through a public referendum.
The ordinance, which would have raised the minimum hourly rate for hotel employees from the current $20.32 to $22.50, was originally slated to take effect on July 1, 2025. It had received final approval from the Los Angeles City Council on May 14, 2025, and was subsequently signed into law by Mayor Karen Bass on May 27, 2025, setting the stage for a substantial pay increase for thousands of hotel staff across the city.
Referendum Challenge Launched
The momentum towards the wage hike was halted last Friday (presumably June 27, 2025) when a coalition representing interests in the hospitality and tourism sectors submitted a petition seeking to place a referendum on the ballot. This action triggers an automatic suspension of the new wage law pending the outcome of the petition verification process and a potential future vote.
The coalition delivered over 140,000 signatures to city officials, aiming to force a public vote on the ordinance and potentially overturn the wage increase altogether.
Verification Process Underway
The validity of the submitted signatures is now under review. According to Santa Monica’s Interim City Clerk Petty Santos, the petitions are being processed to determine if they meet the required threshold of 92,998 valid signatures. If deemed sufficient, the measure will be placed before voters on the June 2026 ballot.
While this verification process is active, the Los Angeles City wage ordinance is formally suspended. This means the scheduled increase will not take effect on July 1, 2025, as originally planned.
Regional Wage Landscape
The suspension of the Los Angeles hotel worker wage hike creates a mixed picture across neighboring municipalities, where minimum wage rates are evolving along different trajectories.
In Santa Monica, the local minimum wage increased by 54 cents to $17.81 per hour on July 1, 2025. This standard increase is tied to the consumer price index. However, Santa Monica’s specific hotel worker wage rate, which is set by Santa Monica Municipal Code Section 4.36.015(b)(2) to match the Los Angeles City rate, will not see an increase in tandem with the general minimum wage hike. Its rate remains tied to the outcome of the Los Angeles referendum process; it will only increase if the LA law takes effect following the failure of the referendum or a “no” vote from the public.
Meanwhile, West Hollywood is proceeding with its planned wage increases for hotel workers. Effective July 1, 2025, the minimum wage for hotel workers in West Hollywood will rise to $20.22 per hour. Employees at businesses operated by hotels in West Hollywood will see their minimum wage reach $21.01 per hour on the same date.
Further west, the City of Malibu has taken a different approach. Malibu has suspended its previously scheduled minimum wage increase for a period of one year. The minimum wage in Malibu will therefore remain at $17.27 per hour.
What Lies Ahead
The fate of the Los Angeles City hotel worker minimum wage increase now rests squarely on the outcome of the signature verification and the potential referendum. Businesses and workers in the city face uncertainty as the legal challenge unfolds.
The coalition’s effort highlights ongoing tensions between labor advocates pushing for higher wages and industry groups concerned about the economic impact of such mandates on businesses. The lengthy process of signature verification and a potential ballot campaign leading up to June 2026 mean the resolution of this wage dispute is still many months away, leaving the planned pay raise for hotel workers in Los Angeles in legislative limbo.
