I’m thrilled to sit down with Katarina Railko, a seasoned expert in the hospitality industry with a deep background in travel and tourism. Katarina has honed her expertise through years of working in the sector and has become a prominent voice in entertainment and events, often speaking at expos and conferences. Today, we’re diving into the hotly debated “Olympic Wage” ordinance in Los Angeles, which aims to raise the minimum wage for hospitality workers to $30 by the 2028 Olympic Games. Our conversation will explore the details of this policy, the reactions from various stakeholders, its potential impact on workers and businesses, and what it could mean for LA as a tourist destination.
Can you walk us through what the “Olympic Wage” ordinance in Los Angeles entails for hospitality workers?
Absolutely, William. The “Olympic Wage” ordinance, officially known as Ordinance No. 188610, is a groundbreaking policy that mandates a gradual increase in the minimum wage for hospitality and tourism workers in Los Angeles, with the goal of reaching $30 per hour by the time the 2028 Olympic Games roll around. It’s designed to ensure that workers in this vital industry are fairly compensated, especially with major global events on the horizon that will bring a surge of visitors to the city. The ordinance lays out a tiered schedule of wage hikes each year until July 1, 2029, and even sets guidelines for annual raises beyond that to keep pace with economic changes.
How are these wage increases planned to be implemented over the coming years?
The rollout is structured to be incremental, which is meant to give businesses time to adjust. Each year, starting from the ordinance’s effective date, there will be a step-up in the minimum wage for hospitality workers, culminating at that $30 mark by 2029. This phased approach is intended to balance the needs of workers for better pay with the operational realities of hotels and other tourism-related businesses, though it’s not without controversy, as we’ll likely discuss.
What can you tell us about the referendum petition filed by the L.A. Alliance for Tourism, Jobs and Progress to challenge this ordinance?
The L.A. Alliance for Tourism, Jobs and Progress, which represents a coalition of hotel associations and other tourism industry stakeholders, filed a petition in June to put a referendum on the city ballot to overturn the Olympic Wage ordinance. They gathered over 140,000 signatures, which initially seemed enough to temporarily suspend the ordinance’s enforcement. However, the Los Angeles County Registrar ruled that the petition didn’t qualify for the ballot because a significant portion of the signatures—around 56,000—were deemed insufficient due to issues like duplication or withdrawal requests. As a result, the ordinance is moving forward.
How have different groups responded to the decision to proceed with the Olympic Wage?
The reactions are quite polarized. On one side, the Defend The Wage L.A. coalition, made up of regional unions and advocacy groups, celebrated the Registrar’s decision as a “historic victory” for workers. They see it as a long-overdue step toward fair pay in an industry that often relies on low-wage labor. On the other hand, the L.A. Alliance for Tourism, Jobs and Progress was deeply frustrated, accusing the Registrar of a lack of transparency and even claiming the results were released late in violation of the City Charter. They’ve vowed to keep fighting, arguing that the policy could harm the affordability of living and working in LA.
Why do supporters believe this wage increase is so crucial for hospitality workers, especially with events like the Olympics coming up?
Supporters argue that the Olympic Wage is essential to ensure hospitality workers aren’t left behind during the economic boom expected from events like the 2026 FIFA World Cup and the 2028 Olympics. They point out that these events will drive a massive influx of tourists, increasing demand for hotel staff, food service workers, and others in the sector. Higher wages, they believe, will provide financial stability for these workers, many of whom struggle to make ends meet in a high-cost city like LA. Personal stories from workers, like one union member who expressed frustration at industry pushback after fighting so hard for this raise, highlight the real human impact of the policy.
What are some of the key concerns raised by critics of the Olympic Wage ordinance?
Critics, including major industry groups, are worried about the economic fallout. They argue that a $30 minimum wage could lead to significant job losses—some estimates suggest up to 15,000 jobs could be cut as businesses struggle to absorb the cost. Small business owners, in particular, feel squeezed, as they’re already dealing with rising inflation, higher insurance rates, and other operational expenses. There’s a fear that many will either have to shut down or pass these costs onto consumers through higher hotel rates and service fees, which could make LA a less competitive destination for travelers.
How do you think the Olympic Wage could shape Los Angeles as a tourist destination in the long run?
It’s a double-edged sword. On one hand, higher wages could improve the quality of service in the hospitality sector by attracting and retaining better talent, which might enhance LA’s reputation as a world-class destination. However, there’s a real risk that increased labor costs will drive up prices for accommodations and other tourist services, potentially making LA less affordable for visitors. If hotel rates soar, it could deter some budget-conscious travelers, especially during peak events like the Olympics. The challenge will be finding a balance where workers are fairly paid without pricing LA out of the market.
What is your forecast for the future of wage policies in the hospitality industry, particularly in cities hosting major global events?
I think we’re at a turning point for wage policies in hospitality, especially in cities like LA that are in the global spotlight with events like the Olympics. There’s growing pressure to address income inequality in industries that rely heavily on low-wage workers, and I expect more cities to follow suit with similar ordinances, particularly as they prepare for high-profile events that expose these disparities. However, the pushback from businesses will likely intensify, and we might see more legal battles or creative compromises, like tax incentives or subsidies, to offset costs. The next few years will be critical in shaping how these policies evolve and whether they can sustainably support both workers and the industry.
