Los Angeles Olympic Wage Ordinance to Take Effect After Referendum Effort Falls Short

AAHOA Warns of Consequences for Small Business Hoteliers

LOS ANGELES, September 8, 2025 — The Los Angeles County Registrar-Recorder confirmed that the referendum to delay the city’s Olympic Wage Ordinance fell short of the required valid signatures. The ordinance will now take effect, raising hotel worker wages from $22.50 in 2025 to $25 in 2026, $27.50 in 2027, and $30 in 2028. A mandatory healthcare benefits payment will also begin in 2026.

"This ruling is a major setback for Los Angeles' small business hotel owners, who will shoulder the burden of this well-intentioned but misguided mandate," said AAHOA Chairman Kamalesh (KP) Patel. "Instead of working meaningfully with industry leaders, the city rushed forward with a policy that ignores economic realities and jeopardizes the very jobs and businesses that keep this city's hospitality sector strong and driving the city’s economic growth. Family-owned hotels now face impossible choices—cutting staff, halting hiring, or raising rates—just as Los Angeles should be preparing to welcome millions of visitors from around the world in celebration of the World Cup and 2028 Olympics. You can't build a world-class city by breaking the backs of the small businesses that make it run."

 "AAHOA Members are proud to create jobs and opportunities in their communities, but this ordinance imposes an unsustainable cost increase that will ripple across the entire city," said AAHOA President & CEO Laura Lee Blake. "Even with a delayed rollout, the mandate represents a 70 percent wage hike above California's 2025 minimum wage. This approach threatens to strip more than $114 million each year from hotels, funds that should be invested instead into keeping workers employed and ensuring Los Angeles remains a competitive, thriving global destination. This mandate raises the risk of closures, layoffs, and a weaker Los Angeles."

AAHOA represents nearly 20,000 hotel owners nationwide, including more than 1,100 hotels in Greater Los Angeles. The association has consistently called on policymakers to engage with small business owners and craft balanced solutions that protect workers while ensuring long-term economic growth for the city's hospitality industry.

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About AAHOA

AAHOA is the largest hotel owners association in the nation, with Member-owned properties representing a significant part of the U.S. economy. AAHOA's 20,000 members own 60% of the hotels in the United States and are responsible for 1.4% of the nation's GDP. More than 1 million employees work at AAHOA member-owned hotels, earning $51.3 billion annually, and member-owned hotels support 4.2 million U.S. jobs across all sectors of the hospitality industry. AAHOA's mission is to advance and protect the business interests of hotel owners through advocacy, industry leadership, professional development, member benefits, and community engagement.