What happened?

On December 11, 2024, the Los Angeles City Council approved the “Olympic Wage Ordinance draft.” The ordinance is expected to be finalized soon since there are a few remaining steps and considerations.

Overview:

The “Olympic Wage Ordinance” aims to incrementally increase the minimum wage for certain workers before the 2028 Summer Olympics. This Ordinance will impact hotel workers, airport employees, and others in the tourism industry.

• Wage Increases: The minimum wage will rise incrementally each year:
  • $22.50/hour starting July 1, 2025
  • $25.00/hour starting July 1, 2026
  • $27.50/hour starting July 1, 2027
  • $30.00/hour starting July 1, 2028

• Healthcare Benefits: Starting July 1, 2025, healthcare payments for eligible airport and hotel workers will increase from $5.95 to $8.35 per hour, with annual adjustments based on state rates.

• Coverage: The ordinance applies to Los Angeles tourism workers, including concessionaires, skycaps, and cabin cleaners, among other employees at hotels with at least 60 rooms

• Right-to-Cure Provision: Employees must give employers advance written notice of violations and 30 days to address the issue before filing a complaint.

• Hardship Exemption: The Olympic Wage Ordinance includes a hardship exemption for concessionaires with 50 or fewer employees at LAX who already have a lease. However, there is no exemption for covered hotels.

• While there is not a formal Olympic Wage Ordinance yet, it is anticipated to be finalized in early 2025—in time for the July 1, 2025, increase.

Additional Details

• Remaining Steps and Considerations: The ordinance is not yet finalized due to a few remaining steps and considerations:
  • Legal Review: The draft ordinance needs to undergo a final legal review by the City Attorney to ensure it complies with all relevant laws and regulations.
  • Public Input: Additional opportunities for public comment and input may exist before the final version is adopted.
  • Administrative Details: Specific administrative details, such as enforcement mechanisms and implementation guidelines, must be finalized.
  • Impact of Recent Events: The recent wildfires in the area have caused unexpected challenges, which might affect the finalization timeline and potentially lead to adjustments in the ordinance.

• Impact on the Tourism Workforce: The ordinance, dubbed the “Olympic Wage Ordinance,” would amend the Los Angeles Living Wage Ordinance (LWO) and the Hotel Worker Minimum Wage Ordinance (HWMO) to increase minimum wages for eligible employees incrementally each year up to $30 per hour by July 2028, just in time for the 2028 Los Angeles Olympics.

“Please mark the effective date on your calendar as a reminder to be fully prepared and ready to ensure compliance with applicable laws and regulations.”

Source References

• LA Olympic Wage Ordinance

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