Jul 1, 6:13 PM EDT


LA airport Hilton sues to block special wage law


LOS ANGELES (AP) -- The Hilton Hotel at Los Angeles International Airport filed a lawsuit Tuesday challenging the legality of a city ordinance that would impose a new minimum wage for hotel workers.

The so-called "living wage" ordinance would give workers at the Hilton and several other airport-area hotels a minimum wage of $10 an hour with benefits or $11.25 without benefits. State law currently requires a minimum amount of $8 an hour.

The ordinance is due to take effect July 5 but in its injunction-seeking lawsuit, Hilton argues the city is attempting to improperly regulate the market and is violating state rules.

"The city of Los Angeles does not have the right to impose a wage law that only affects a dozen hotels on one street that have no financial or contractual relationship with the city," Grant Coonley, the Hilton's general manager, said in a statement.

Coonley also accused the city of "carrying water" for a local union attempting unionize hotel workers.

City attorney's spokesman Frank Mateljan said the ordinance is valid and the city attorney will defend it vigorously.

Councilwoman Janice Hahn, who co-introduced the ordinance, said the new wage levels were still "barely above the poverty level."

"Instead of spending their money on lawyers and lawsuits, they should just do the right thing and pay their loyal and hardworking employees," Hahn said.

Coonley countered that all the hotel's non-tipped employees already make more than the ordinance sets out and tipped employees make an average of over $18 dollars an hour.

Hahn said the city had a right to levy a minimum wage because it spends millions each year on upkeep of the airport, something nearby hotels benefit from directly.



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