Understanding the Impact of the Proposed Tourism Worker Wage Increase
A proposed minimum wage increase for tourism workers in the City of Los Angeles could have wide-reaching effects.
What You Need to Know
The proposed minimum wage increase for tourism workers aims to raise the hourly rate to $25, with annual increases reaching $30 by 2028.
This is a significant jump from the current minimum wage of around $20.
This will mainly affect employees in the hospitality and tourism sectors, such as hotel staff.
It will most impact buildings like hotels, resorts, and mixed-used properties where many of these workers are employed.
Property managers of these types of commercial real estate will need to navigate potential cost increases, wage adjustments, and associated operational impacts.
How It Impacts You
For our members, this proposed wage increase could have significant implications:
- Increased Operating Costs: Property managers may face higher costs for contracted services, as service providers adjust their rates to accommodate the new minimum wage.
- Staffing Challenges: The wage disparity between tourism workers and other sectors could lead to staffing difficulties for non-tourism related positions within managed properties.
- Economic Ripple Effects: The broader economic landscape could shift, with higher wage expectations across all sectors. This might affect property investment decisions, tenant retention, and rental rates as businesses react to increased costs and uncertainties about future operating expenses in Los Angeles.
Stay Connected
The Los Angeles City Council will hold a special Economic, Community Development and Jobs Committee meeting to review the economic feasibility study of this proposed minimum wage increase on Wednesday, October 16th at 3:30 PM.
This is the next step for this proposal to gain traction and public comments will only be taken in-person.
You are welcome to visit City Hall for this meeting to express your concerns about the possible unintended effects of this wage increase on the broader real estate and service industries.
Stay connected with BOMA on the Frontline for updates.
