The conversation around raising the minimum wage continues to gain momentum across the country. While the federal minimum wage remains at $7.25 per hour, a rate that hasn’t budged since 2009, several states are taking matters into their own hands. In one major move, California is stepping up with a significant minimum wage increase — and it’s aimed at hospitality workers just in time for the 2028 Summer Olympics in Los Angeles.
Let’s look at what’s changing, who it affects, and why this matters on a national scale.
Debate
Raising the minimum wage has always been a controversial topic, with workers and advocacy groups pushing for updates that match the current cost of living. In April 2025, the Raise the Wage Act of 2025 was introduced in Congress. If passed, this bill would increase the federal minimum wage to $17 an hour by 2030.
The act also proposes to eliminate subminimum wages for tipped workers, youth workers, and those with disabilities. These groups have traditionally been paid less under exceptions to federal wage laws. According to estimates, about 15% of the U.S. wage-earning population would benefit directly from this legislation, gaining an average of $3,200 more per year.
State
Not all states follow the same wage structure. While federal law sets a minimum threshold, states can enforce their own rules. Employees are entitled to whichever wage is higher — the federal or the state minimum wage.
Here’s how it breaks down:
| State/District | Minimum Wage (2025) |
|---|---|
| District of Columbia | $17.50 |
| Washington | $16.28 |
| California (statewide) | $16.00 |
| Georgia (lowest state) | $5.15 |
Some states, like Georgia, still list a lower minimum wage than the federal level. But employees covered by federal law still earn the $7.25 federal minimum, not the lower state rate.
Olympics
Los Angeles is already preparing for the 2028 Summer Olympics, and one part of that preparation is focused on its hospitality workforce.
In May 2025, LA Mayor Karen Bass signed the Citywide Hotel Worker Minimum Wage Ordinance into law. This law, Ordinance No. 188610, mandates that hospitality workers in Los Angeles will earn at least $30 per hour by July 1, 2028.
This new wage applies to:
- Hotel workers
- Tourism employees
- Other hospitality-related roles within the city
Starting July 1, 2029, these wages will also receive annual adjustments, ensuring they keep pace with inflation and cost-of-living increases.
Reason
The ordinance clearly states the motivation: hospitality workers are among the most financially vulnerable. Many work long hours, often juggling two or three jobs, just to make ends meet.
From the ordinance:
“Hotel workers often live paycheck to paycheck and are frequently forced to work two or three jobs to provide food and shelter for their families… the City has an interest in promoting an employment environment that protects government resources.”
It’s not just about fair pay — it’s about reducing the reliance on government assistance and creating a sustainable living wage in one of the most expensive cities in the country.
Trends
Other states are also addressing economic struggles in different ways. New York, for example, recently approved a one-time inflation relief payment to help eligible residents handle rising costs.
The national trend is clear: with the cost of living skyrocketing, more local and state governments are stepping in where federal policy remains stalled.
And for California, hosting a global event like the Olympics has put even more pressure on local lawmakers to ensure that those working behind the scenes — hotel cleaners, servers, and maintenance crews — are not left behind.
Future
The upcoming wage increase in California, specifically Los Angeles, could set a new precedent for other cities across the country. If it works well in LA, similar models might appear elsewhere, especially in tourism-heavy areas.
The hospitality industry is known for being underpaid and overworked. This new law is one way California is acknowledging that reality — and taking action to change it.
Whether the federal minimum wage catches up remains to be seen. But with the 2028 Olympics on the horizon, California’s decision sends a clear message: workers deserve better, and they deserve it now.
FAQs
What is the federal minimum wage?
It’s currently $7.25 per hour and hasn’t changed since 2009.
When will LA hotel workers get $30/hour?
By July 1, 2028, ahead of the Summer Olympics.
What is the Raise the Wage Act?
A bill to raise the federal minimum wage to $17 by 2030.
Does every state have the same minimum wage?
No, states set their own, but federal law sets a minimum.
Why focus on hotel workers in LA?
They’re among the most vulnerable and underpaid workers.
