Increasing minimum wage has constantly been a focus for workers, advocacy groups, and individual citizens across the nation. While the federal minimum wage is currently set at $7.25, whereby all employees across the nation covered by the federal Fair Labor Standards Act are subject to the federal minimum wage, many states have their own minimum wage policies. In anticipation for the upcoming 2028 Summer Olympics, this one state is gearing up to raise the minimum wage for individuals working in this job specifically.
Tension over set minimum wage amounts
Increasing the federal minimum wage policy has long been a source of contention for citizens. The current federal minimum wage of $7.25/hour has not been increased since it was implemented in 2009. However, this year, saw mass progress regarding raising the minimum wage with the passing of The Raise the Wage Act of 2025, introduced in the U.S. House of Representatives and U.S. Senate on April 8, 2025.
The new piece of legislation would see the federal minimum wage increase to $17/hour by 2030. In addition, the bill also see the gradual elimination of subminimum wages for tipped workers, workers with disabilities, and youth workers in order to ensure that workers covered by the Fair Labor Standards Act would have the same wage floor. At least 15% of the US wage-earning workforce would be directly impacted by the wage increase with workers expected to earn an additional $3,200 per year with the wage increase.
Significant wage increase in this one state for these workers
While federal policy currently mandates that minimum wage must be at least set at $7.25/hour for employees covered under the federal Fair Labor Standards Act are subject to the federal minimum wage, some states have their own minimum wage policies, and employees who are not covered by the Fair Labor Standards Act may receive a minimum wage which is less than the federal $7.25/hour if the state minimum wage is lower than this.
Currently, District of Columbia has the highest set minimum wage at $17.50/hour while Georgia has the lowest minimum wage at $5.15/hour. In the instance when an employee is subject to both state and federal wage laws, the employee is entitled to the higher of the two.
In anticipation for the increased tourism to be expected due to the upcoming 2028 Summer Olympics in host state Los Angeles, the state’s Mayor Karen Bass recently signed into law at the end of May this year legislation which will see hospitality workers’ minimum wage rise to $30 by July 1, 2028. Dubbed the Citywide Hotel Worker Minimum Wage Ordinance, the LA City Clerk’s press release describes how Ordinance No. 188610 in Los Angeles will also will see annual wage increases for hospitality and tourism workers in the state from July 1, 2029.
Protecting vulnerable workers with increased wages
The new piece of legislation highlights how hospitality workers are some of the most vulnerable employees, often being forced to work multiple jobs in order to cover their monthly expenses due to high incidences of exploitation in the industry:
“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,” reads the ordinance. “…the City has an interest in promoting an employment environment that protects government resources.”
With the increased cost of living seen across the nation, the increase in wages in one way in which states are looking to improve the financial circumstance for the most vulnerable individuals in their communities. In New York, the state recently approved a once-off inflation payments for eligible residents in order to help New Yorkers offset the associated costs of the rise in expenses. New York in particular is known for being one of the most expensive states in the nation to live in.
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