Coalition opposes flawed $30 hospitality industry minimum wage increase and calls for balanced policies that protect and grow jobs in L.A.
LOS ANGELES– Today, the Los Angeles Area Chamber of Commerce announced the formation of the Alliance for Economic Fairness, a multiple-sector coalition, to protect and support hospitality jobs and small businesses in the region and by opposing the City of Los Angeles’ proposal to raise the minimum wage for hospitality workers to an unprecedented $30 per hour.
“The city’s ongoing cost of living crisis has affected every worker, small business, family, and our community. But the proposed $30 Wage Ordinance will have a devastating impact on the Los Angeles economy and jobs, and unfairly targets a vital industry for our region that has yet to recover from the pandemic,” said Maria S. Salinas, president and chief executive officer of the Los Angeles Area Chamber of Commerce. “This ordinance risks nearly 15,000 jobs that extend far beyond the hospitality industry, while also threatening $55 million in local tax revenue which funds key priorities like homelessness services. Los Angeles city policy leaders must engage in constructive dialogue with impacted stakeholders to find a solution that strikes a strategic yet effective balance. The Alliance for Economic Fairness aims to foster this dialogue and work towards an equitable approach which supports workers, protects jobs, and maintains the economic vitality of Los Angeles.”
According to a new study conducted by Oxford Economics and released today by the Los Angeles Area Chamber of Commerce, the $30 Wage Ordinance would lead to the loss of approximately 14,870 jobs across the Los Angeles economy and a $1.1 billion decrease in visitor spending.
- The construction sector, which has historically been an important source of jobs for union workers, would be particularly hard-hit, with more than 2,000 jobs at risk due to reduced hotel construction spending.
- Furthermore, the study estimates a staggering $169 million decrease in state and local tax revenue, including $55 million in local tax revenue, which directly funds essential public services like homelessness, public safety, education, and other social safety net initiatives — just as the city is facing future budget deficits.
###
Alliance for Economic Fairness, a project of the Los Angeles Area Chamber of Commerce
Alliance for Economic Fairness was formed by statewide and local leaders in response to our state’s skyrocketing cost of living — providing residents, local businesses, and civic organizations a platform to make their voices heard.
About the Los Angeles Area Chamber of Commerce
The Los Angeles Area Chamber of Commerce represents the interests of a broad spectrum of organizations across the private, non-profit, academic, and public sectors, including the business community, job creators, and innovators in the Los Angeles region. Our mission is to design and advance opportunities and solutions for a thriving regional economy that is inclusive and globally competitive. As the oldest and largest business association in the region, the Chamber has a long-standing history of convening business leaders, communities, and policy makers to promote a vibrant economy. The Chamber’s vision is A Thriving Region for All.