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LAANE and its allies are celebrating a landmark victory for hotel workers near Los Angeles International Airport. On April 9, the California Supreme Court cleared the way for the LAX hotel living wage law to take effect. The decision comes more than a year after the Los Angeles City Council enacted the wage law, which was immediately challenged by hotels and other business interests.
The law is now expected to take effect within six weeks, barring any further challenges from the hotel industry.
In 2006, LAANE and a coalition of community, labor and religious groups joined with Councilmembers Janice Hahn and Bill Rosendahl in leading the effort to pass the living wage ordinance as part of a larger campaign to transform conditions near LAX. The legislation also had strong support from Mayor Antonio Villaraigosa.
Business opposition, however, has delayed implementation of the law, costing workers millions of dollars. According to a study released last month by LAANE, Lost Wages, Soaring Revenue, Century Boulevard hotel workers have lost approximately $4.6 million in unpaid living wages. On average, individual workers lost between $350 and $4,044 a year, depending on job classification. Revenues for Century Boulevard hotels, meanwhile, have increased an estimated $30.1 million—approximately 6 times the additional cost of complying with the ordinance.
“The hotel industry in Los Angeles is booming and workers deserve to also share some of that success,” said LAANE Deputy Director Vivian Rothstein.
Los Angeles City Councilmember Janice Hahn worked with LAANE and its allies to pass the LAX hotel living wage law.
Hotels near LAX enjoy the highest occupancy rates in Los Angeles, yet many workers in these hotels still can't afford to meet their basic needs. Hotel workers in the LAX/ PCH submarket earn 20% less than their counterparts in downtown L.A. Average annual earnings for LAX/ PCH workers is $20,328 – barely above the federal $20,000 federal poverty threshold for a family of four. Some workers qualify for multiple government assistance programs.
The nearby communities of Lennox, Inglewood and Hawthorne, where a large number of these workers live, suffer high rates of poverty, crime and overcrowding. One in four residents in these communities lives below the federal poverty line, a measure of extreme poverty, while more than 40% of children come from poor households. Median household income is 25% lower than in L.A. County as a whole.
“This is great news for us and our families,” said Isabel Brentner, a room attendant at the LAX Hilton. “I have dreams to give my children a better life and earning a living wage can make them a reality.”
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