The Los Angeles City Council voted Wednesday to approve a sweeping package of minimum wage increases for workers in the tourism industry, despite objections from business leaders who warned that the region is already facing a slowdown in international travel.

The proposal, billed by labor leaders as the highest minimum wage in the country, would require hotels with more than 60 rooms, as well as companies doing business at Los Angeles International Airport, to pay their workers $30 per hour by 2028.

Jessica Durrum, a policy director with the Los Angeles Alliance for a New Economy, a pro-union advocacy group, said business leaders also issued dire warnings about the economy when previous wage increases were approved — only to be proved wrong. Durrum, who is in charge of her group’s Tourism Workers Rising campaign, told the council that a higher wage would only benefit the region.

  • ArbitraryValue@sh.itjust.works
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    17 hours ago

    That works out to an annual salary of about $62,500 for a full-time employee and my intuition is that the marginal value of the lowest-paid hotel employees to their employers is a lot less than that, but the nice thing about this being a local law is that LA can experiment on itself and the rest of the country can watch and learn. If this works well, other cities can do the same thing and if this doesn’t then the harm is relatively limited.

    (I noticed that the law only applies to hotels with over sixty rooms. I already stay exclusively in Airbnbs when I travel because that’s cheaper. Is LA also one of those cities making it difficult to run an Airbnb or is this going to make large hotels even less competitive in that regard?)