LA's Ballot Battle Heats Up: What Business Leaders Need to Know
A flurry of ballot measures is creating a complex and potentially costly summer for businesses in Los Angeles. The catalyst for this political showdown is the newly enacted Olympic Wage Ordinance, which Mayor Karen Bass signed into law in late Spring. This ordinance guarantees a phased increase in the minimum wage for tourism workers to** $30 an hour by 2028**, ahead of the Olympic Games. The ordinance, and the subsequent ballot measures, have ignited a fierce debate over the future of L.A.’s economy, city funding, and development. Here’s a breakdown of the key players and what’s at stake.
The Pushback: Failed Referendum and New Initiatives
The Los Angeles Alliance for Tourism, Jobs and Progress, a coalition of business groups, immediately launched an effort to block the Olympic Wage Ordinance. They submitted a referendum petition with the goal of overturning the law.
On September 8, 2025, the City Clerk’s Office confirmed that this referendum failed to qualify for the ballot as it did not have enough valid signatures to move forward. As a result, the Olympic Wage Ordinance is now in effect immediately, and the first phased wage increase, originally scheduled for July 1, 2025, is proceeding.
This development is a major win for labor advocates and a significant setback for the tourism industry. Businesses will now need to immediately adjust their payrolls to comply with the new wage requirements.
The Union’s Counter-Attack: Four Major Proposals
In response to the business referendum, the union UNITE HERE Local 11 introduced a series of its own aggressive ballot measures that pose a significant concern for the business community.
These measures, if they make it to the ballot and pass, could radically reshape Los Angeles. They include:
- Citywide $30 Minimum Wage: Extending the Olympic Wage Ordinance to all workers across all industries in the city, raising the minimum wage in stages up to $30 an hour by July 1, 2028.
- Voter Veto on Development: Requiring voter approval for all new hotel and event center development projects, potentially slowing down or stopping major construction.
- CEO Tax: Imposing a 0.5% surcharge on the city’s gross receipts tax for large companies whose CEO compensation is more than 100 times the median employee salary.
- Voter-Approved City Contracts: Requiring voter approval for city contracts with companies that have a high CEO-to-employee pay ratio.
These four ballot measures have received their official titles and summaries from the City Clerk’s Office but are still awaiting clearance to begin the signature-gathering process.
Business Strikes Back: The Tax Repeal Initiative
In a move against the union’s proposals, a coalition of business groups, including the Central City Association and the Valley Industry and Commerce Association, has joined forces to introduce a ballot measure of their own: the Los Angeles Cost of Living Relief Initiative.
- What it would do: This initiative seeks to repeal the city’s gross receipts tax, a move that could significantly reduce the city’s annual revenue and potentially impact public services.
- Current Status: The initiative has been filed and is cleared to begin the signature-gathering process. The campaign will need to collect approximately 140,000 signatures within 120 days to qualify for the ballot. It could appear before voters as early as June 2026.
What’s Next?
The failure of the business-backed referendum on the Olympic Wage Ordinance is a key turning point. The focus now shifts to the union’s and business groups' new initiatives. These measures represent a high-stakes battle that could determine L.A.’s economic policies and development for years to come. Business leaders should closely monitor these campaigns as they progress and consider their potential impact.
If you have any questions about the matters discussed in this issue of Compliance Matters, please call your firm contact at (818) 508-3700, or visit us online at www.brgslaw.com .
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