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Los Angeles Council Approves Slower Path to $30 Wage for Hotel and Airport Workers

The deal aims to head off a ballot drive to scrap the city’s gross receipts tax.

Overview

  • The City Council, which voted 11–4 Tuesday, approved a phased plan that lifts pay to $25 in 2026, $26.50 in 2027, $28.50 in 2028, and $30 in 2029.
  • The measure now heads to Mayor Karen Bass for approval after last week’s 9–6 placeholder vote opened room for talks.
  • Business groups that put a November ballot measure to repeal the city’s gross receipts tax, a levy on business revenue, said they will withdraw it if the ordinance is signed.
  • City budget officials warned repealing that tax could strip about $860 million a year from Los Angeles and force layoffs and deep cuts to services.
  • Labor unions and workers opposed the delay because many had planned for 2028 raises and now face another year before reaching $30.