News Summary
Unite Here Local 11 is engaged in legal and political struggles advocating for a minimum wage hike to $30 for hospitality workers in Los Angeles by 2028, following a recent ordinance. The proposed increases have met with opposition from business groups, leading to a referendum petition. Concerns arise about job losses and the impact on the city’s reputation amidst major upcoming events. The union’s efforts also extend to Arizona, aiming to influence local labor policies, amidst rising costs of living for workers.
California – Labor Union Unite Here Local 11 is actively engaged in both legal and political battles over minimum wage increases in Los Angeles and Arizona, highlighting ongoing tensions between hospitality workers’ rights and local business interests. The union seeks to increase the minimum wage to $30 for hospitality workers in Los Angeles by July 1, 2028, following the recent approval of the Citywide Hotel Worker Minimum Wage Ordinance.
On May 27, the Los Angeles City Council adopted the ordinance, mandating annual wage hikes for hotel workers from $22.50 in July 2026 to $30 by July 2028. Additionally, hotel employers will be required to contribute a minimum of $8.35 per hour towards health benefits starting next year. However, the ordinance faced immediate backlash as the LA Alliance for Tourism, Jobs and Progress filed a referendum petition aiming to suspend its enforcement until voters can weigh in on the issue.
Unite Here Local 11 has vehemently opposed the petition, alleging that those gathering signatures for the referendum misled potential signers about its intentions. In light of these claims, the union has filed a complaint with the attorney general, alleging intimidation and dishonest tactics employed by the signature gatherers. Despite these issues, the LA Alliance managed to collect over 140,000 signatures, surpassing the needed 93,000 signatures to qualify the referendum for the June 2026 ballot, effectively putting the ordinance on hold.
Concerns regarding the referendum have been voiced by some city council members, particularly in regard to its potential impact on Los Angeles’ reputation as it anticipates hosting major events, including the 2026 World Cup and the 2028 Olympics. The controversy surrounding wage increases may alter the city’s image as a premier destination for tourism and business.
Unite Here Local 11’s influence is extending beyond California, as the union is involved in organizing ballot measures in Arizona that could adversely affect local businesses. In Glendale, Arizona, they supported Proposition 499, aimed at imposing strict mandates on the hospitality industry. The union has also challenged the new Axon corporate headquarters development in Scottsdale, which was expected to generate thousands of jobs. They are actively pursuing aligned candidates in city council elections in Tucson and Phoenix to support their labor agenda.
Proponents of the wage increase argue that the enhanced minimum wage is necessary to keep pace with escalating healthcare and housing costs. However, there are significant concerns from local business leaders who warn that such increases could result in job cuts and business closures. The California Hotel & Lodging Association estimates that the excessive wage requirements could lead to the loss of over 15,000 hospitality jobs. On top of this, insurance costs for California hotels have risen by 28.1% year-on-year, further complicating the situation for hotel owners struggling with labor costs.
While numerous business leaders advocate for repealing the minimum wage ordinance to ensure economic survival and avert potential service cuts within the city, some economists project a potentially positive outcome. Analysts suggest that wage increases may stimulate economic growth, leading to the creation of new jobs by 2028.
Frustration among hospitality workers regarding the wage increase delay is palpable, as the escalating costs of living through healthcare and housing continue to impact their financial stability. Many workers feel that timely wage adjustments are crucial to meet their essential needs in an economically challenging environment.
As the legal and political skirmish over wage increases continues, Unite Here Local 11 remains steadfast in its pursuit of better pay and working conditions for hospitality workers across California and Arizona. The ongoing developments within this controversial issue will serve as a critical area of focus for both business leaders and labor advocates in the months leading up to the polls.
Deeper Dive: News & Info About This Topic
- Hotel Dive: LA Passed a $30 Minimum Wage for Hospitality Workers
- Wikipedia: Minimum Wage
- LAist: Los Angeles Hospitality Workers
- Google Search: Los Angeles hospitality workers
- LA Times: Minimum Wage for Tourism Workers
- Google Scholar: Minimum Wage in California
- Politico: Business-Labor Battle Over Olympics
- Encyclopedia Britannica: Minimum Wage Laws
- New York Times: Minimum Wage and the Olympics
- Google News: Los Angeles Minimum Wage Controversy
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
