The Anaheim City Council recently voted 7-0 to request an economic impact study and put off making a decision about an initiative—which would raise wages and reform work conditions for hotel workers—until their meeting on June 13.
If adopted, the proposed ordinance would raise the minimum wage for hotel workers to $25 an hour—versus the current $17 or $18 an hour. It would also prohibit mandatory overtime and require overtime wages for those who exceed workload limits.
Under the initiative, hotel operators would also have to retain workers for at least 90 days after an ownership change.
Councilman Carlos Leon and Mayor Ashleigh Aitken initially attempted to pass the ordinance at the meeting on May 16 without any changes, but it failed in a 2-5 vote with councilors Natalie Meeks, Norma Campus Kurtz, Natalie Rubalcava, Stephen Faessel, and Jose Diaz voting against.
“I believe providing fair wages and working conditions for workers is not just a matter of economic justice, but one that can improve the standard of living for all of us and take a practical step towards reducing income inequality and addressing the cost-of-living crisis in our city and county,” said Leon at the meeting.
According to city spokesperson Mike Lyster, the five opposing councilors are unsure whether it is the city government’s role to get involved in workplace issues.
During the meeting, opposing councilors said their largest concern was about how the ordinance would affect the city’s economy and tourism industry.
“If I vote for this, I have to know what it’s going to do to the city budget, to police and city functions,” said Councilman Jose Diaz. “I can’t consciously vote for something without knowing the unintended consequences, which the initiative will have many.”
The proposal includes workers at hotels and event centers in Anaheim—both public and privately owned—measuring over 20,000 square feet. That includes concert halls, stadiums, and sports arenas, such as the Anaheim Convention Center, Honda Center, and Angels Stadium.
Because the Anaheim Convention Center, Honda Center, and Angels Stadium are city owned, raising wages could impact the city directly, and possibly the tourism industry—providing $60 million in tax revenue for the city per year—by causing ticket and hotel room prices to increase, according to Lyster.
The impact study will be conducted by two independent contractors. One will analyze the effect on hotel tax revenue if room prices were to increase, and the other will look at additional costs to the city if city workers at the Anaheim Convention center would receive a wage raise as well.
The city council has two options: to accept and pass the ordinance at their June 13 meeting after the impact study has been completed or reject the ordinance and put it before the voters to decide.
If the council decides to pass it to voters, it may be costly. According to Lyster, a special election will cost $1.6 million. Putting it on the March 2024 primary ballot would cost over $400,000, and the Nov. 2024 General Election would cost around $200,000.
The initiative was originally placed on the city’s agenda after a petition requesting such garnered over 27,000 signatures.
The initial ordinance also included mandatory security measures, including panic buttons and alarms for workers with a response team—however the city council decided to vote on these items separately on June 13.
A similar initiative failed to pass last year in Laguna Beach but was successfully adopted in Irvine and Los Angeles.
