Hospitality and tourism workers in California are the lifeblood of one of the state’s largest industries. Many Southern California workers are set to get pay raises this year, even as a fight continues over a plan to eventually raise the minimum wage for hotel workers to $30 in Los Angeles.
L.A. hotel workers are set to see minimum wage rates rise to $25 per hour from $22.50 per hour in July, under an ordinance enacted last year. The pay floor for hospitality workers in San Diego is set to rise in July to $19.00 per hour for employees at hotels and amusement parks, and to $20.06 per hour at event centers.
The story is far from over in L.A., however, as business groups and some local elected officials are still trying to slow the pace of required increases, which would currently raise hotel workers’ minimum wage to $30 by 2028. Although a ballot effort to block the ordinance failed, city council members in December floated an updated ordinance that would delay the $30 minimum wage until 2030.
The fight over the minimum wage hikes comes as L.A. prepares to host the World Cup this summer and the Olympics two years later. It highlights the struggle for working people in the hospitality industry to keep up with the cost of living across the state and underscores just how hard some of the biggest corporate players are fighting to keep pay down.
“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,” according to the new ordinance. “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 who keep the tourism industry functional, safe, and profitable are left languishing behind.”
At Justice Law Corporation, our California wage and hour attorneys help working people in hospitality and tourism jobs and across the state fight back to protect their rights and ensure they are fully paid. We are seasoned attorneys who have dedicated our careers to assisting people in wage and hour, discrimination, and other cases.
Hospitality employers, from smaller local businesses to global conglomerates, continue to try to shortchange their workers. Here is what workers in the industry need to know about their rights on the job.
Wage Hikes in L.A. and San Diego
The Los Angeles ordinance lays out required minimum wage increases for hotel workers, beginning with a $25-per-hour increase on July 1. The law calls for staggered increases to boost the pay floor to $30 in 2028.
- July 1, 2026: $25.00
- July 1, 2027: $27.50
- July 1, 2028: $30.00
The law also requires that the wage floor be tied to inflation once it reaches $30. It prohibits employers from offsetting tips and service charges against required minimum pay rates.
The upcoming San Diego wage hike covers a wider range of workers, including those at hotels, amusement parks, and event centers. The law also imposes staggered increases to boost the minimum wage for these workers to $25 by July 2030.
- July 1, 2026: $19.00
- July 1, 2027: $20.50
- July 1, 2028: $22.00
- July 1, 2029: $23.50
- July 1, 2030: $25.00
Workers at event centers are on a slightly different schedule and also reach $25 in 2030.
- July 1, 2026: $21.06
- July 1, 2027: $22.00
- July 1, 2028: $23.00
- July 1, 2029: $24.00
- July 1, 2030: $25.00
As in L.A., the local law includes additional, future increases based on inflation.
Overtime Pay for Workers in California
Most hotel and hospitality workers are also entitled to higher overtime pay rates. That is true regardless of whether they are covered by the local laws in L.A. and San Diego.
Overtime rates kick in when employees work more than eight hours in a day or 40 hours in a specific week. Employees across California must be paid 1.5 times their regular rate for any work performed beyond those time limits. The rate increases to twice the regular pay rate for hours worked beyond 12 in a day or eight on the 7th consecutive day in a workweek.
Take, for example, an employee who is paid $25 per hour. If he or she works overtime, the employee must be paid at the time-and-a-half rate of $37.50 per hour or the double-time rate of $50 per hour, depending on the situation.
Hospitality Worker Misclassification
Despite broad legal protections for working people in California, employers throughout the state often look to shortchange their employees.
Some simply do not pay their workers for all of the time they spend on the job. Others claim that workers are independent contractors rather than employees, meaning they are not covered by minimum wage, overtime, and other laws. Independent contractors, who are generally treated as self-employed entrepreneurs, are also responsible for paying taxes and other expenses that employers typically cover.
The good news is that employers cannot simply choose who is an employee and who is an independent contractor. State law requires employers to treat the vast majority of workers as employees, entitled to the full rights and protections that come with this status. It allows employers to classify only a limited group of workers as independent contractors who truly control the terms and conditions of their work.
Our California Wage and Hour Attorneys Can Help
If you believe that your employer is not fully paying you or violating your rights on the job, you do not need to go it alone. A California wage and hour attorney at Justice Law Corporation can help you evaluate your claim and understand your rights and options.
Our office is conveniently located in Pasadena. Contact us at (818) 230-7502 to schedule a free consultation with a California wage and hour attorney.
