Hospitality Industry Legal Update: “Hotel Industry Threatens Legal Action Over New Wage Law”

Supporters dispute claims that the move was intended to help labor groups increase membership and say the higherLA mayor wages will lift working families out of poverty. Under the law, hotels with union workers can be exempted from the $15.37 hourly wage if workers agree…City Hall leaders on Wednesday rejected the criticisms. Councilman Mike Bonin, who advocated passage of the law, questioned the prediction that 533 hotel jobs will be lost in his Westside district.

Ratcheting up their opposition to a new law requiring larger hotels to pay workers $15.37 an hour, representatives for the hotel industry on Wednesday threatened to sue the city over the ordinance.

Standing outside Los Angeles City Hall, hotel operators and business leaders said they are considering a lawsuit based on federal laws. They also released new numbers predicting 1,488 jobs — including at least 140 in the San Fernando Valley — would be lost as Los Angeles hotels lay off workers to compensate for the wage hike.

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