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Recommendation to request City Manager and the Economic Development Department to conduct a labor market analysis on hospitality worker wage rates across the Southern California region and trends in where these salary rates are headed between now and 2028, refer to the Economic Development and Opportunity Committee for public input and discussion, and request the City Attorney to prepare a ballot measure for consideration during the March 2024 municipal election amending the Long Beach Hotel Worker Wage Ordinance (LBMC Chapter 5.48) to authorize a market pay adjustment that ensures fair and competitive wages for hospitality industry employees.
DISCUSSION
The tourism industry is a major economic driver in Long Beach. However, many workers at Long Beach hospitality properties are struggling to remain housed and to support their families, with the ever-increasing cost of living.
On November 6, 2012, voters in Long Beach approved Measure N by a 26-point margin, creating an inflation-adjusted minimum wage and a right to five sick days per year for workers in the hotel industry. This wage began at $13/hour in 2013, increasing by either the year-over-year percentage increase in the Consumer Price Index (CPI) for Los Angeles and Orange Counties, or by two percent, whichever is higher. This has led to a current wage of $17.55/hour
, in effect as of July 1st of this year.
While Long Beach hospitality workers have benefited from Measure N’s passage, these wage rates have not kept pace with the rising cost of living in Long Beach, particularly in Downtown Long Beach where the majority of hospitality jobs are located. Rents for a studio apartment in the 90802 Downtown Long Beach zip code have more than doubled since the passage of Measure N in 2012, increasing by 109%, compared to a 60% increase across Los Angeles County.
In order to afford a studio ...
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