To determine if a hotel falls within the city limits, go to the city of Los Angeles Neighborhood Info website. You can find more information regarding the MWO on the city of Los Angeles website. You can also contact the Office of Wage Standards (the OWS) at 1-844 -924-3752 or by email at wagesla@lacity.org.

Coverage and Eligibility

A covered hotel employer under the MWO is any of the following:

• A person who owns, controls or operates a hotel in the city;
• A person who owns, controls and/or operates any contracted, leased or sublet premises connected to or operated in conjunction with a hotel's purpose; or
• A person who provides services at the hotel.3

“Person” under the MWO means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign.4

A “hotel” is any residential building or transient occupancy residential structure that is designated or used for lodging and other related services for the public and contains 60 or more guest rooms, suites of rooms or dwelling units rented for periods of 30 days or fewer.5 Guest room count shall be calculated based upon the opening of the hotel or on December 31, 2012, whichever results in a greater guest room count, and must include rooms under renovations even if unable to be occupied at that moment in time.6

“Hotel” also includes any contracted, leased or sublet premises connected to or operated in conjunction with the building's purpose, or that provides services at the building.7 For example, a valet company that contracts to provide valet services on the premises will be subject to the MWO because the valet company is “providing services at the building.”8

Any “hotels” within the Airport Hospitality Enhancement Zone, which encompasses the boundaries of the Gateway to LA Property Business Improvement District as established by Ordinance 177,211, are also covered by the MWO if the hotel has 50 or more guest rooms. The MWO also includes contracted, leased or sublet premises connected to or operated in conjunction with the building's purpose, or that provide services at the building.9

A “hotel” does not include short term rentals under Section 12.22 A.32 of the Los Angeles Municipal Code.10

“Hotel workers” entitled to the rights and protections of the MWO are any individual whose primary place of employment is at one or more “hotels” and who is employed directly by a hotel employer or by a person who has a contract with the hotel employer to provide services at the hotel.11 Managerial, supervisory or confidential employees of a hotel employer are not hotel workers for the purposes of the MWO.12

Minimum Wage Rate

• As of July 1, 2026, the hotel worker minimum wage is $25 per hour.

Future hotel worker minimum wage rates are as follows:

• Beginning July 1, 2027, the rate is $25.50 per hour.
• Beginning July 1, 2028, the rate is $28.50 per hour.
• Beginning July 1, 2029, the rate is $29 per hour.
• Beginning January 1, 2030, the rate is $30 per hour.
• Beginning July 1, 2030, the rate will be determined by the Consumer Price Index (CPI).13

These rates cannot include, or be offset by, gratuities, service charges or bonuses.14

Future rate changes will be made annually based on the Regional Consumer Price Index and shall take effect on July 1 of each year.

• The Los Angeles hotel worker minimum wage is higher than either the California state minimum wage or the standard Los Angeles City minimum wage. You must pay the (higher) Los Angeles hotel worker minimum wage to employees who are eligible for it.

Health Benefits

If a hotel employer does not provide hotel workers with qualifying health benefits (medical, dental, vision, mental health and disability income), it must add an additional amount to the required hourly wages listed above.

• Beginning July 1, 2026, the additional rate is $4.25 per hour.
• Beginning July 1, 2027, the additional rate is $6 per hour.15

Beginning July 1, 2028, if a hotel employer does not provide hotel workers with qualifying health benefits (medical, dental, vision, mental health and disability income), the additional amount must match the health benefit rate required for employers servicing the Los Angeles International Airport (LAX).16

If the employer’s hourly contribution for health benefits falls short of the required amount, it must pay the difference directly to the worker as extra hourly pay. Retirement plans, life insurance and similar non-medical benefits don’t count toward the health benefit requirement. Health benefit payments are not required to be paid on overtime hours.17

Service Charges

In addition to the minimum wage, hotel employers must also pay the entirety of "service charges" to hotel workers, which includes all separately-designated amounts, regardless of name or label, collected from a customer for service by hotel workers, or described in such a way that customers might reasonably believe that the amounts are for service.18 These charges include, but are not limited to, those described on receipts as "service charge," "delivery charge" or "porterage charge."19

Hotel employers must pay service charges to hotel workers on the next payroll following collection of an amount including, but not limited to, the following situations:

• Amounts collected for banquets or catered meetings shall be paid equally to the hotel worker(s) who actually worked the banquet or catered meeting;
• Amounts collected for room service shall be paid to the hotel worker(s) who actually delivered the food and beverage associated with the charge; and
• Amounts collected for porterage service shall be paid to hotel worker(s) who actually carried the baggage associated with the charge.20

Time Off

Hotel employers must provide both full-time and part-time hotel workers with compensated and uncompensated time off. Time off provided under the MWO does not impact the minimum wage rate paid to hotel workers.21

• The MWO does not provide offsets or compliance with either California's Health Workplaces, Healthy Families paid sick leave law or the city's paid sick leave ordinance. Consult with legal counsel as needed to ensure compliance with these laws.

Compensated Time Off

A full-time hotel worker must accrue compensated time off at a rate of 96/52 (1.847) hours each week that the worker is employed by a hotel employer.22 A full-time hotel worker is someone who works at least 40 hours per week or in accordance with the hotel employer's policy, if more generous (i.e., the hotel employer considers a full-time employee someone who works fewer than 40 hours.)23 Part-time employees will accrue compensated time off at a rate proportional to their hours worked compared to a full-time employee.24

Hotel workers must be allowed to use their accrued compensated time off after six months of employment, or sooner if allowed by employer policy, and the employer may not unreasonably deny a hotel worker's request to use compensated time off once eligible to do so.25

Hotel employers must allow hotel workers to accrue up to at least 192 hours of compensated time off and if a hotel worker has reached that cap, the employer must provide a cash payment at the hotel worker's current rate once every 30 days for accrued compensated time off in excess of the cap.26 Hotel employers may institute a higher cap by policy and may also offer voluntary cash out of compensated time off hours under the cap, but may never require a hotel worker to cash out compensated time off hours.27

Any compensated time off provided under the MWO that a hotel worker uses is protected time off and may not be considered as an absence that may result in discipline, discharge, suspension or any other adverse action.28

Uncompensated Time Off

A full-time hotel worker must accrue uncompensated time off at a rate of 80/52 (1.539) hours each week that the worker is employed by a hotel employer.29 A full-time hotel worker is someone who works at least 40 hours per week, or in accordance with the hotel employer's policy, if more generous (i.e., the hotel employer considers a full-time employee someone who works fewer than 40 hours.)30 Part-time employees will accrue uncompensated time off at a rate proportional to their hours worked compared to a full-time employee.31

Hotel workers must be allowed to use their accrued uncompensated time off after six months of employment, or sooner if allowed by employer policy, and the employer may not unreasonably deny a hotel worker's request to use uncompensated time off once eligible to do so.32

Hotel employers must allow hotel workers to accrue up to at least 80 hours of uncompensated time off unless the employer has instituted a higher cap by policy.33

Any uncompensated time off provided under the MWO that a hotel worker uses is protected time off and may not be considered as an absence that may result in discipline, discharge, suspension or any other adverse action. 34

Retaliation

Hotel employers are prohibited from discharging, reducing compensation or otherwise discriminating against any hotel workers who assert their rights under the MWO, such as opposing any practice prohibited by the MWO, participating in proceedings related to the MWO, or seeking to enforce their own rights under the MWO. Hotel workers asserting these and any other rights under the MWO are protected from retaliation.35

Enforcement

The MWO may be enforced through a civil action brought in the Superior Court of the State of California.36 A hotel worker who successfully claims a failure to pay wages pursuant to the MWO may receive back pay for each day the violation occurred.37 A hotel worker who successfully claims retaliation under the MWO may be entitled to reinstatement, back pay and any other legal or equitable relief the court deems appropriate.38

Any hotel employer found to have engaged in a “willful violation” will be subject to treble damages awarded for violations of the MWO.39 A “willful violation” means the hotel employer deliberately failed or refused to comply with the MWO.40

Penalties and Fines

• A hotel employer who violates the MWO must pay the hotel worker whose rights were violated for all relief, including but not limited to unpaid wages, health benefits, time off or service charges unlawfully withheld and an additional penalty of up to $120.00 per day that each of the violations occurred.41

Hotel workers who violate the MWO are also liable to the city of Los Angeles for a penalty of up to $50 per day that unpaid wages, health benefits, time off, or service charges unlawfully were withheld from the hotel worker. The city may also impose additional fines on a violating hotel employer of up to $500.00 per violation.42

Waiver of Rights

Hotel workers may waive any rights under the MWO, but only if the waiver is explicitly set forth in clear and unambiguous terms in a bona fide collective bargaining agreement. Unilateral implementation of terms and conditions by either party to the collective bargaining agreement shall not constitute a waiver of rights under the MWO.43

• A hotel employer may apply for a one-year waiver of the MWO’s minimum wage and health benefits requirements based on financial hardship if it can demonstrate that with its current financial condition, compliance with the MWO would result in:

• Either bankruptcy or a shutdown of the hotel;
• A reduction of the workforce by more than 20 percent; or
• A reduction of hotel workers' total hours by more than 30 percent.

Prior to submitting the application, the hotel employer must provide written notice of the application to all employed hotel workers, as well as written notice of the determination to hotel workers within three days of receipt.44

A determination to grant or deny the waiver may be appealed in accordance with the city's practice for hearing examiner review.

A hotel employer that receives a hardship waiver will be granted a 12-month delay in providing any new wage and health benefits increases that occur after the date the completed waiver application is received. The hotel employer must pay hotel workers the wage rate and health care benefits that are in effect at the time it submits the waiver application.45

A hotel worker who is eligible for benefits under Medicare, a health plan through the U.S. Dept. of Veteran Affairs, or a health plan in which the hotel worker’s spouse, domestic partner or parent is a participant to another health plan, may request an individual waiver of the health care provisions of the MWO. A hotel worker who receives a waiver will be entitled to the hourly wage rate under the MWO, and an additional wage rate of:

• $100.00 per month for a full-time employee as defined by the Affordable Care Act (ACA) and who works at least 30 hours per week or 130 hours per month; or
• $50 per month for a half-time employee as defined by the ACA and who works less than 30 hours per week or 130 hours per month.46

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1. Los Angeles Mun. Code sec. 186.02A

2. Los Angeles Mun. Code sec. 186.02B

3. Los Angeles Mun. Code sec. 186.01E

4. Los Angeles Mun. Code sec. 186.01G

5. Los Angeles Mun. Code sec. 186.01D

6. Los Angeles Mun. Code sec. 186.01D; Citywide Hotel Worker Minimum Wage Ordinance Frequently Asked Questions (FAQ) No. 1

7. Los Angeles Mun. Code sec. 186.01D

8. Citywide Hotel Worker Minimum Wage Ordinance FAQ No. 2

9. Los Angeles Mun. Code sec. 186.01A

10. Los Angeles Mun. Code sec. 186.01D

11. Los Angeles Mun. Code sec. 186.01F

12. Los Angeles Mun. Code sec. 186.01F

13. Los Angeles Mun. Code sec. 186.02A

14. Los Angeles Mun. Code sec. 186.02A

15.Los Angeles Mun. Code sec 186.04

16. Los Angeles Mun. Code sec. 186.04

17.Los Angeles Mun. Code sec. 186.04

18. Los Angeles Mun. Code secs. 186.01H; 186.03

19. Los Angeles Mun. Code secs. 186.01H

20. Los Angeles Mun. Code sec. 186.03

21. Citywide Hotel Worker Minimum Wage Ordinance FAQ No. 5

22. Los Angeles Mun. Code sec. 186.02B1(a)

23. Los Angeles Mun. Code sec. 186.02B1(a)

24. Los Angeles Mun. Code sec. 186.02B1(b)

25. Los Angeles Mun. Code secs. 186.02B1(c)(i)-(ii)

26. Los Angeles Mun. Code secs. 186.02B1(c)(iii)-(iv)

27. Los Angeles Mun. Code secs. 186.02B1(c)(iii)-(iv)

28. Los Angeles Mun. Code sec. 186.02B1(c)(v)

29. Los Angeles Mun. Code sec. 186.02B2(a)

30. Los Angeles Mun. Code sec. 186.02B2(a)

31. Los Angeles Mun. Code sec. 186.02B2(b)

32. Los Angeles Mun. Code secs. 186.02B2(c)(i)-(ii)

33. Los Angeles Mun. Code sec. 186.02B2(c)(iii)

34. Los Angeles Mun. Code sec. 186.02B1(c)(iv)

35. Los Angeles Mun. Code sec. 186.06

36. Los Angeles Mun. Code sec. 186.07A

37. Los Angeles Mun. Code sec. 186.07A1

38. Los Angeles Mun. Code sec. 186.07A2

39. Los Angeles Mun. Code sec. 186.07A3

40. Los Angeles Mun. Code sec. 186.01I

41. Los Angeles Mun. Code sec. 186.08

42. Los Angeles Mun. Code sec. 186.09

43. Los Angeles Mun. Code sec. 186.10A

44. Los Angeles Mun. Code sec. 186.10B

45. Los Angeles Mun. Code sec. 186.10B

46. Los Angeles Mun. Code sec. 186.10C