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Annenberg School of Communication and Journalism University of Southern California
Politics Local

Industry Groups Gather to Criticize Hotel Minimum Wage Hike

Businesses worry the increase could lead to job losses.

Representatives of several business and commerce organizations expressed their disagreement Tuesday with the proposed ordinance of raising the minimum wage to $15.37 for non-unionized hotel workers in Los Angeles.

The proposed minimum wage increase was brought up three months ago. The current minimum wage is $9. City Council members are scheduled to vote on Wednesday.

However, representatives from different trade organizations and business advocacy groups object to wage increase due to economic issues and public review.

Katherine Lugar, president of the American Hotel and Lodging Association, said in a statement that the hotel-only proposal is a bad idea since it would unfairly disrupt their industry. She said the industry has paid well and provided benefits for its employees.

“The hotel industry pays its employees above minimum wage in eight out of ten hotel jobs.”

Lugar cited a report released by PFK Consulting USA, which indicates that if the proposal were implemented today, there would be a negative impact on job creation and future development.

Other groups have urged the City Council to play by the rules and follow the law. They have denounced the Council for trying to schedule the committee vote without seriously considering the negative impact the wage mandate could bring, and for ignoring public opinion.

They have asked the City Council to reschedule the vote.

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