Deal Reached to Protect Workers, Businesses, Services for Angelenos

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Ends Ballot Measure to Repeal Key Revenue Stream

LOS ANGELES - Mayor Karen Bass announced today that a deal has been reached to protect workers and businesses, and end a ballot measure campaign that represented an existential threat to the city budget and the services it supports. After being engaged in the negotiations for months, Mayor Bass was called by both business and labor to close the deal.

Today, the City Council will vote on an ordinance to set a phased-in minimum wage of $30 in 2030 for certain hotel and airport workers. It will likely be voted on by Council twice. After the expected approval of the new ordinance, the proponents of the ballot measure to repeal the city's gross receipts tax have pledged to end their effort.

"This agreement ensures workers are paid fairly and that businesses that create jobs can continue serving LA and hiring Angelenos," Mayor Bass said. "I want to thank SEIU 721, SEIU USWW and Unite HERE Local 11, and the Central City Association, and I want to commend the Council President for his leadership and Councilmembers McOsker, Yaroslavsky and Soto-Martinez for their commitment to these negotiations."

LA's gross receipts tax is paid by businesses and represents $800 million in revenues to the City's general fund. If it were repealed, critical city services - street repair, public safety, initiatives to make LA cleaner and healthier - would be decimated.

Earlier this year, Mayor Bass was called in by LAUSD leaders and unions representing teachers and other school employees to reach an agreement that averted a strike.