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L.A. City Council Delays $30 Minimum Wage for Hospitality Workers
The 11-4 vote keeps the raise at $25 in July and $30 in January 2030 as leaders seek to avert a tax repeal measure.
On Tuesday, the Los Angeles City Council approved an 18-month delay to a $30 minimum wage for hotel and airport workers, postponing the increase until after the 2028 Olympics.
Business leaders threatened to repeal the city's gross receipts tax, which officials claimed would strip $740 million from the general fund over the first year, forcing negotiations.
Mayor Karen Bass brokered the agreement, calling the proposed tax repeal "an existential threat to the city budget and the services it supports." Business groups agreed to withdraw the ballot measure.
Finalizing the schedule, the 11 to 4 vote raises wages to $25 in July and reaches $30 by January 2030, though a second approval is required next week.
Economists remain divided on wage impacts; the Employment Policies Institute found 96% of 166 surveyed economists oppose a $20 minimum wage. Activist Saru Jayaraman counters that workers cannot survive on less than cost-of-living wages.