LA Hotels Cut Jobs, Raise Prices Due to Wage Law
Annapolis News Today | 2 Min News | The Daily News Now! · The Daily News Now!
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Show Notes
New study reveals Los Angeles hotels have reduced jobs by six percent since the citys minimum wage law for hotel workers took effect last September. The research from the Hospitality Education and Research Organization links the job cuts directly to the ordinance, which raises wages above the state level to match local living costs. Mayor Karen Bass signed the law in May 2025, with wages increasing to $22.50 per hour by July 2025 and reaching $30 per hour by July 2028. Hotels are struggling to cover labor costs, leading to increased room rates and fees for extras. Travel experts worry this could negatively impact tourism. Looking ahead, sixty-two percent of hotels plan to reduce staff hours in 2026, and fourteen hotel restaurants could close soon. Fifty-eight percent expect to operate at a loss by the end of next year, with some turning to technology to cut labor needs. The debate continues over balancing better pay for workers with the strain on businesses and travelers in a high-cost city.
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