Under pressure from hotels and airlines, the Los Angeles City Council has voted to delay the implementation of a minimum hourly wage of $30 for hotel and airport workers from 2028 to 2030.
A coalition of Delta, United and city hotels had gathered enough signatures for a voter referendum to repeal the city's gross receipts tax, which would strip an average of $860 million per year from the city's general fund over the first five years after repeal, according to the Los Angeles Times.
The L.A. Times also reported that the airlines and hotels indicated they would abandon their campaign if the council halted or delayed the $30 hourly minimum.
The city council delayed implementation with a 9-6 vote.
Under a new schedule, the minimum wage will increase to $25 in 2027, $27.50 in 2028 and $30 in 2030. The current minimum wage is $22.50.
The original ordinance setting a $30 minimum wage had passed last year and was nicknamed the "Olympic Wage Ordinance," as it was to coincide with Los Angeles' hosting of the 2028 Summer Olympics.
The American Hotel & Lodging Association was pleased that the city council voted to delay the $30 minimum wage, with AHLA CEO Rosanna Maietta calling it "an important step to provide the hotel industry with the relief it desperately needed."
"While not perfect, this bill slows rapidly increasing operating costs amid declining travel demand," said Maietta, adding that "Los Angeles still remains an exceptionally challenging operating environment for the hotel industry."