Los Angeles City Revises Wage and Health Benefits Requirements for Hotel, Airport Workers
On May 26, 2026, the Los Angeles City Council voted to amend its hotel and airport worker minimum wage ordinance, which was originally adopted in 2025. Taking effect on June 29, 2026, the amended ordinance extends the $30-per-hour wage increase timeline from 2028 to 2030 and revises hotel employer health benefit payment obligations.
Revised Minimum Wage Schedule for Hotel and Airport Workers
Under the amended ordinance, by January 1, 2030, minimum hourly wage rates will increase to $30, giving more time than under the original ordinance which required the minimum wage to reach $30 in 2028.
Below is the revised minimum wage schedule for hotel and airport workers with health benefits working within Los Angeles City:
- $25 per hour on July 1, 2026.
- $25.50 per hour on July 1, 2027.
- $28.50 per hour on July 1, 2028.
- $29 per hour on July 1, 2029.
- $30 per hour on January 1, 2030.
- Starting July 1, 2030, annual adjustments are based on the Consumer Price Index (CPI).
Santa Monica hotel employers should note that the city of Santa Monica matches the Los Angeles City’s hotel workers’ minimum wage rate. Accordingly, Santa Monica’s hotel worker minimum wage rate is expected to follow the above schedule.
Revised Health Benefit Payments Requirement
Under the original ordinance, covered hotel employers not offering health benefits had to add an amount to the required hourly wage equal to the health benefit rate already required for employers servicing the Los Angeles International Airport (LAX). Simply put, employers not providing the required health benefits must pay additional wages.
The amended ordinance maintains this requirement but sets a health benefits payment amount for hotel employers that is lower than the LAX rate for the next two years. Starting in 2028, hotel employers must match the LAX health benefits payment rate.
The amended health benefits requirements are below:
Effective Date | Airport Workers | Hotel Workers |
July 1, 2026 | $7.65/hour | $4.25/hour |
July 1, 2027 | $8.15/hour | $6/hour |
July 1, 2028 | $8.35 hour | Same as airport workers |
July 1, 2029 (and annually thereafter) | TBD, but not less than $8.35/hour | Same as airport workers |
Starting July 1, 2029, Los Angeles City adjusts this rate by an amount equal to the percentage increase (if any) in the California Department of Managed Healthcare’s Large Group Aggregate Rates (LGAR) report for the prior year.
The amended ordinance specifies what qualifies as a health benefit, narrowing the categories that can be counted toward an employer’s obligations. Covered employers who are unsure whether they are providing health benefits as required under the ordinance should consult with legal counsel.
Hotel and airport employers with workers in Los Angeles City should consider reviewing their wage and benefit obligations now to prepare for the ordinance’s upcoming changes.
Shannon N. Claire, J.D., Employment Law Subject Matter Expert, CalChamber
CalChamber members can read more about Los Angeles City’s Minimum Wage Ordinance and Los Angeles City’s Hotel Workers Minimum Wage Ordinance (HWMO) in the HR Library, and use the Local Ordinance Wizard to help determine the local ordinances and labor law posters that apply to your business or location(s). Not a member? Learn how to power your business with a CalChamber membership.