By CalChamber - June 19, 2023
The California Chamber of Commerce has joined a broad, diverse coalition supporting a resilient tourism economy in the Los Angeles Area.
The Alliance for Economic Fairness coalition, led by the Los Angeles Area Chamber of Commerce, opposes a Los Angeles city proposal to increase the minimum wage for hospitality workers to $30 per hour by 2028.
The proposed increase would add to the city’s ongoing cost-of-living crisis affecting all workers, small business, families and the community. The increase also targets the tourism industry, which still is recovering from the pandemic.
Statewide Implications The proposed Los Angeles city minimum wage increase continues the patchwork of minimum wage and other local requirements.
The state minimum wage went to $15.50/hour on January 1. Some Los Angeles area minimum wages, however, are set to increase starting July 1 to levels ranging from $16.78/hour (Los Angeles city) to $19.08/hour (West Hollywood).
Proposed Los Angeles City Ordinance If passed, the city ordinance would increase the minimum wage for hotel workers and workers at Los Angeles International Airport (LAX) to $25 per hour in 2023, with yearly increases of $1 until the minimum wage reaches $30 per hour in 2028.
Projected losses of nearly 15,000 jobs will extend far beyond the hospitality industry and risk $55 million in local tax revenue that funds key priorities like homelessness services.
Coalition Efforts The coalition is urging Los Angeles city policy leaders to engage in constructive dialogue with stakeholders to find a solution that strikes a strategic yet effective balance.
The Alliance for Economic Fairness aims to foster this dialogue and work toward an equitable approach that supports workers, protects jobs, and maintains the economic vitality of Los Angeles.
According to a new study by Oxford Economics, released June 8 by the Los Angeles Area Chamber, the $30 Wage Ordinance would lead to the loss of approximately 14,870 jobs across the Los Angeles economy and a $1.1 billion decrease in visitor spending.
The construction sector, which historically has been an important source of jobs for union workers, would be particularly hard-hit, with more than 2,000 jobs at risk due to reduced hotel construction spending.
Furthermore, the study estimates a $169 million decrease in state and local tax revenue, including $55 million in local tax revenue, which directly funds essential public services like fighting homelessness, public safety, education, and other social safety net initiatives — just as the city is facing future budget deficits.
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