Tipsheet

Los Angeles Raised the Minimum Wage for Hotel Workers. Guess What Happened Next.

Amy Curtis
Amy Curtis  |  March 19, 2026 10:00 AM

California doesn't learn. In 2023, legislation signed by Newsom raised the state's minimum wage for fast food workers to $20 an hour (except for Panera Bread, because Newsom is buddies with an owner). What followed that minimum wage hike was not the economic prosperity that Democrats always promise with minimum wage hikes. Instead, businesses started laying off employees, cutting hours, and shuttering businesses altogether.

That didn't stop California Democrats in Los Angeles from repeating the same mistake in Los Angeles, where they jacked up the minimum wage for hotel workers. That law, passed last year, incrementally increases the wage to $30 by 2028. In July of last year, pay went up to $22.50 an hour.

Now more than 600 of those workers are without jobs at all, and it's a stark reminder that the real minimum wage — thanks to Democratic Party policies — is always zero. What's even more insulting is that the union celebrated this, calling it a "victory for working famililes."

"650 hotel workers in LA just lost their jobs," said Ramin Ekhtiar, a California-based real estate and mortgage expert. "Not because of the economy, not because of COVID, because Karen Bass signed a wage law — and here's the best part — the union threw a party when she signed it. They called it 'historic.' They called it a 'victory for working families.' Tell that to the 650 people filing for unemployment right now. It's not a victory. It's a press release stapled to a pink slip. And they haven't even hit 25 bucks yet."

Here's more:

The media outlet also noted that the ordinance already resulted in a pay increase of $22.50 per hour in July 2025, adding that it will continue to increase incrementally until it reaches $30 by July 2028.

With minimum wage rates in Los Angeles now among the highest in the nation, many properties -- especially smaller and independent hotels -- said they are struggling to absorb the additional labor costs without cutting hours, reducing staff, or raising prices, per the survey.

The study found that many hotels have already raised room rates and ancillary service prices to offset higher labor costs. Researchers note that while some price increases reflect broader inflationary trends, the wage hike is a significant contributing factor, especially at budget and mid-price properties.

Travel industry analysts said higher hotel prices could ultimately affect tourism demand, particularly among cost-sensitive visitors.

To manage rising payroll costs, some hotels are accelerating investments in automation and technology, such as mobile check-in kiosks, self-service food and beverage options, and digital concierge services. While these changes are aimed at improving efficiency, critics argue they may reduce employment opportunities for entry-level workers.

Everyone saw this coming. Except the Democrats.

These wage hikes help the unions while workers get laid off. Which is why unions love them.

Yes.

These actions have economic consequences.

Math was never their strong suit.

Keep in mind, this wage hike is going to reach its max in 2028, right when Los Angeles is slated to host the Summer Olympics. What could possibly go wrong in a city facing a shortage of hotel workers, closed hotels, and stressed-out staff when the entire world shows up for the Games?