living wage ordinance for workers employed in hotels near LAX, and in 2009 passed an ordinance that raised the wages for airport employees. In recognition of the commensurate need for fair wages for hotel workers throughout the City, the Hotel Worker Minimum Wage Ordinance went into effect in 2014. The rapid increase in the cost of living in recent years has made income inequality one of the most pressing economic, social and civil rights issues facing Los Angeles. While major events such as the 2026 World Cup and 2028 Olympics will likely result in record profits for employers in the tourism industry, the workers that keep the tourism industry functional, safe, and profitable are left languishing behind. Wages and health benefits have not kept up with steep inflation and the rising cost of living, and workers continue to face persistent wage disparities, worsened by inconsistent benefits. The ill effects of low wages and benefits have had a greater impact on hotel workers because, unlike the LWO which requires employers to provide workers with a healthcare benefit payment, the current Hotel Minimum Wage Ordinance does not. Through this Ordinance, the City seeks to remedy the disparity in how hotel workers are compensated with respect to other tourism workers. This Ordinance increases the compensation for hotel workers by requiring a higher minimum cash wage and a new minimum health benefit payment. According to a 2023-2024 Berkeley Economic Advising and Research (BEAR) study, more than 40 percent of airport workers and more than 60 percent of hotel workers will receive a wage increase because of this policy, while 15 percent and 35 percent of those respective workers will receive expanded health coverage. Per the BEAR study, the compensation and health benefit improvements contained in this Ordinance will directly and indirectly impact approximately 23,000 hotel workers. These workers are expected to increase their purchase of goods and services, thereby stimulating the economies of the City, County, and neighboring jurisdictions, in turn. By proceeding incrementally and applying an increased minimum wage to hotel workers at larger hotels, including a hardship waiver for certain affected hotels, the City seeks to promote the health, safety and welfare of thousands of hotel workers by ensuring they receive decent compensation for the work they perform.