Los Angeles Delays Hotel Worker $30 Wage to 2030

On May 26, 2026, the Los Angeles City Council approved Ordinance No. 188944 (Council File 25-1466), amending the Citywide Hotel Worker Minimum Wage Ordinance (CHMWO) to slow the phased implementation schedule and revise health benefit payment obligations for covered hotel and airport employers.

The amendment delays the $30-per-hour minimum wage threshold from July 1, 2028, to January 1, 2030, introduces a revised phased wage schedule from 2026 through 2030, and establishes new health benefit payment rates for hotel employers before aligning them with the airport worker rate in 2028.

This update applies to covered hotel employers in Los Angeles, including hotels with 60 or more guest rooms and certain hotels with 50 or more guest rooms located within the Airport Hospitality Enhancement Zone (AHEZ), as well as airport worker wage provisions. The amendment took effect on June 29, 2026.

Legal Requirements

• Pay covered hotel workers the revised minimum wage on the following schedule:
  • $25.00/hour beginning July 1, 2026
  • $25.50/hour beginning July 1, 2027
  • $28.50/hour beginning July 1, 2028
  • $29.00/hour beginning July 1, 2029
  • $30.00/hour beginning January 1, 2030
  • Beginning July 1, 2030, the rate will be adjusted annually per the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

• Provide the required health benefit payment: $4.25/hour beginning July 1, 2026; $6.00/hour beginning July 1, 2027; and beginning July 1, 2028, the hotel worker health benefit obligation is tied to the health benefit payment applicable to airport workers.

• If the required health benefits are not provided, pay the equivalent amount as additional hourly wages. If the employer’s hourly health benefit payment is less than the required rate, the difference must be paid to the hotel worker as additional wages.

Continue to comply with existing CHMWO obligations, including service charge distribution rules, time off requirements (96 compensated hours and 80 uncompensated hours per year for full-time workers), notice posting, payroll recordkeeping, and anti-retaliation protections.

Practical Considerations

• Review payroll systems and budgets to ensure the July 1, 2026, wage and health benefit adjustments are properly implemented, and plan for the subsequent scheduled increases through January 1, 2030.
• Reassess whether providing qualifying health benefits or paying the equivalent as additional wages is the more practical compliance approach, since the amendment narrows the categories that count as qualifying health benefits.

• Update workplace postings to reflect the revised CHMWO wage and health benefit rates, using the Office of Wage Standards (OWS) updated Wage Chart.
• Coordinate with contractors and vendors that provide services at covered hotels, because hotel workers employed by a contractor providing services at the hotel are also covered by the ordinance.

Overview

Revised Wage Schedule: The amendment revises the previously adopted schedule to spread the increase to $30/hour over a longer period. The new phased schedule is:

• July 1, 2026: $25.00/hour
• July 1, 2027: $25.50/hour
• July 1, 2028: $28.50/hour
• July 1, 2029: $29.00/hour
• January 1, 2030: $30.00/hour
• July 1, 2030, and annually thereafter: adjusted per CPI-W

Revised Health Benefit Payment

• Hotel employers must pay a health benefit rate of $4.25/hour beginning July 1, 2026, increasing to $6.00/hour beginning July 1, 2027.
• Beginning July 1, 2028, the hotel worker health benefit obligation is tied to the health benefit payment applicable to airport workers.
• If the employer does not provide the required health benefits, the equivalent amount must be paid as additional hourly wages.
• If the employer’s health benefit contribution is less than the required rate, the difference must be paid to the hotel worker as additional wages.

Covered Employers and Workers

• The CHMWO applies to hotel employers operating covered hotels (residential structures containing 60 or more guest rooms that may be rented for 30 consecutive calendar days or less).
• Hotels with 50 or more guest rooms located within the Airport Hospitality Enhancement Zone (AHEZ).
• Covered hotel workers include individuals whose primary place of employment is at one or more covered hotels, employed either directly by the hotel employer or by a contractor providing services at the hotel.

Enforcement Authority

• The Office of Wage Standards (OWS) is the Designated Administrative Agency that enforces the CHMWO.
• OWS may investigate violations, inspect workplaces, interview employees, review payroll records, and impose restitution, penalties, and administrative fines.

Why This Matters

The amendment slows the previously adopted “Olympic wage” implementation schedule, giving hotel and airport employers more time to reach the $30/hour rate, but still requires a substantial increase to $25.00/hour on July 1, 2026, followed by scheduled increases every year through 2030. Combined with the revised health benefit payment obligations and CPI-W-based annual adjustments beginning July 1, 2030, hotel employers should treat the amendment as a multi-year compensation and benefits planning issue rather than a one-time change. The amendment also narrows what qualifies as a health benefit, which may prompt some employers to shift from benefits to equivalent wage payments.

Key Risks for Employers

• Review payroll systems and budgets to ensure the July 1, 2026, wage and health benefit adjustments are properly implemented, and plan for the subsequent scheduled increases through January 1, 2030.

• Reassess whether providing qualifying health benefits or paying the equivalent as additional wages is the more practical compliance approach, since the amendment narrows the categories that count as qualifying health benefits.

• Update workplace postings to reflect the revised CHMWO wage and health benefit rates, using the Office of Wage Standards (OWS) updated Wage Chart.

• Coordinate with contractors and vendors that provide services at covered hotels, because hotel workers employed by a contractor providing services at the hotel are also covered by the ordinance.

Additional Information

Covered hotel employers also remain subject to the Public Housekeeping Training Ordinance (PHTO) under LAMC Chapter XVIII, Article 2.1 (Ordinance No. 188610). Beginning December 1, 2025, covered hotel employers must contract with a certified training organization to provide at least 5.5 hours of public housekeeping training to room attendants on topics designated in the ordinance. The hotel employer is responsible for paying the cost of the training and for compensating employees for the time spent attending it. The OWS maintains a list of currently approved training providers on its website. This is a separate compliance requirement from Ordinance No. 188944 but is part of the broader Los Angeles hotel worker regulatory framework.

Source References

• City of Los Angeles – Press Release – Hotel Worker Ordinances (May 26, 2026)
• Los Angeles Ordinance No. 188944 (Council File 25-1466)

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