Hospitality trade groups suing LA over minimum wage hike
Two national hotel industry trade groups have joined forces to sue the city of Los Angeles for passing a minimum wage rate for hotel workers.
A federal lawsuit filed by the American Hotel & Lodging Association and the Asian-American Hotel Owners Association says it violates federal labor and equal protection laws.
The law, which was passed in October, requires non-union hotels with more than 300 rooms to pay workers the new minimum wage of $15.37 an hour from July 2015.
In July 2016, the new wage hike kicks in for hotels with 125 rooms or more.
The trade associations claim it creates an uneven labor market as hotels with union collective bargaining agreements are exempt.
"The city’s ordinance is clearly designed to put a thumb on the scale in favor of labor and disrupts the careful balance between labor and management," said Katherine Lugar, chief executive of the American Hotel & Lodging Association.
The lawsuit also claims the ordinance violates equal protection clauses by singling out the hotel industry.
It says food service employees at hotel restaurants must now be paid $15.37 an hour, while food service workers in similar positions at other restaurants in the city can be still be paid the state minimum wage of $9 an hour.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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