A campaign to overturn Los Angeles' Olympic Wage Ordinance has failed to gather enough signatures, ensuring the law will move forward and gradually raise hotel workers' minimum wage to $30 per hour by 2028.
The ordinance is nicknamed the "Olympic Wage," as it coincides with Los Angeles' hosting of the 2028 Summer Olympics.
The Los Angeles County Registrar-Recorder confirmed on September 8 that the referendum petition collected 84,007 valid signatures, falling short of the required 92,998. The ordinance, which passed the Los Angeles City Council in May and applies to hotels with more than 60 rooms, will bump wages from the current $22.50 to $25 in 2026, $27.50 in 2027 and $30 in 2028.
The wage increase will also apply to airport workers.
The failed referendum's backers included airlines Delta and United as well as hotel companies represented by the American Hotel and Lodging Association (AHLA).
Both the AHLA and the Asian American Hotel Owners Association (AAHOA) warned the wage increases could devastate hotel operators. In a statement, AAHOA chairman Kamalesh Patel called the ordinance "well-intentioned but misguided," asserting it represents a 70% wage increase above California's 2025 minimum wage and will force hotels to cut staff or raise rates.
"This mandate raises the risk of closures, layoffs and a weaker Los Angeles," said AAHOA president Laura Lee Blake.
Likewise, the AHLA had previously cited an Oxford Economics analysis suggesting the ordinance's knock-on effects could eliminate 14,000 hotel jobs and cost $169 million in tax revenue.
Despite the referendum's failure, AHLA president Rosanna Maietta called on Los Angeles mayor Karen Bass to intervene, stating that "the mayor has made a clear commitment to broker a solution that averts these severe consequences. We call on her to proceed quickly."
The Defend the Wage LA Coalition, led by unions Unite Here Local 11 and SEIU-United Service Workers West and other allies, celebrated the vote's outcome. Labor groups have argued that the wage increase is necessary to help tourism workers afford the high cost of living in Los Angeles.
"Workers defeated a $3 million billionaire-backed campaign designed to cut wages and deceive Angelenos," said Kurt Petersen, co-president of Unite Here Local 11. "We thank the people of Los Angeles for standing with us. Together, we will not only defend the Olympic Wage, we will ensure that the Olympics and Paralympics lift up our city, not line the pockets of greedy CEOs."