LA City Council backs a probe into signature-gathering for a minimum wage referendum ...Middle East

On July 1, the scheduled start date for a planned minimum wage for tourism workers, the Los Angeles City Council voted to launch a broad review of alleged misconduct on both sides of a heated referendum fight after debate over ensuring the probe would be even-handed.

On the day that an Olympic Wage Ordinance was to go into effect, it was halted by the City Clerk’s office as officials review whether a business coalition’s petition drive has enough valid signatures to overturn the ordinance. The ordinance would raise the minimum wage for tourism workers to $30 an hour by 2028.

The motion — originally aimed to challenge the business-backed referendum that has stalled the Olympic Wage Ordinance — was amended at the meeting to broaden its scope.

The original motion by Councilmembers Hugo Soto-Martinez and Curren Price asks staff to estimate how much workers could lose if the wage increases took effect in July 2026 instead of this month, and to explore whether workers might be owed back pay if the business referendum fails. It also calls for possible legal recourse if signature gatherers for the referendum petition “are not truthful with voters.”

Under the final version, city staff will investigate alleged fraud and other misconduct by signature gatherers on both sides of the referendum effort.

Councilmember Traci Park, who introduced the amendment, said she had been targeted “by misleading smear campaigns by the very group now complaining about this behavior” and insisted any investigation should not be one-sided.

“Any allegation of untruthfulness or intimidation should be investigated, and if necessary, fully prosecuted,” Park said, “but that means having a report that is broad enough to look at all actors and all proponents, those who collected signatures for the referendum, as well as those who sought to withdraw those voter signatures.”

Councilmember Soto-Martinez supported Park’s amendment but noted that elected officials expect public scrutiny. Council President Marqueece Harris-Dawson also backed the broader review while urging colleagues to avoid divisive politics.

The final vote on the amended motion was 12-2, with Councilmembers Monica Rodriguez and Imelda Padilla voting against, and Katy Yaroslavsky absent.

A couple dozen union members rallied outside the City Hall on Tuesday morning before filing the Council Chamber to call on the elected officials to let the measure move forward.

“After fighting two years to improve my healthcare, it was taken from me by greedy corporations,” said Jovan Houston, customer service agent at LAX and a SEIU-USWW executive board member. “We need this. We should not have to fight as hard as we do to get a decent wage here in Los Angeles.”

The Olympic Wage Ordinance was scheduled to begin July 1, gradually increasing the minimum wage for most hotel and airport workers to $30 in 2028, with an initial rate of $22.50 this month and a $7.65-per-hour health care credit.

The measure is put on hold while the City Clerk’s Office reviews whether the business coalition’s referendum petition has enough valid signatures to qualify for the ballot.

The L.A. Alliance for Tourism, Jobs and Progress, a coalition of airlines, hotels and concession companies backing the referendum petition, said it delivered more than 140,000 voter signatures to the City Clerk last Friday, June 27, to overturn the law.

To qualify for the June 2026 ballot, the business group must submit roughly 93,000 valid signatures by the end of June. The City Clerk is currently conducting a raw count of the signatures.

In a statement, the L.A. Alliance for Tourism, Jobs and Progress called the petition drive “a remarkable show of political unity,” arguing that more than 140,000 residents had made it clear they oppose the Olympic Wage Ordinance.

“Indeed, the plan will cause widespread, long-term economic damage to workers, small businesses, and the entire city of Los Angeles,” the group said. “We look forward to voters across Los Angeles using their power at the ballot box next June to protect the city’s vital tourism industry.”

Mark Beccaria, partner of Hotel Angeleno in West Los Angeles, said the wage hike could be devastating for independent operators already facing tight margins.

“Our hope is we can keep our doors open and survive this new challenge for the next generation,” he said.

Union leaders, meanwhile, have accused referendum supporters of misleading voters and filed complaints with state and local prosecutors last month alleging misconduct. They say more than 121,000 voters submitted forms to withdraw their signatures once they learned the referendum would block the wage hike.

On Tuesday, the City Clerk’s Office said it is still conducting the initial raw count of signatures and will issue a final receipt once that process is complete.

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