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A. Service Charges shall not be retained by the Hotel Employer but shall be paid in the entirety by the Hotel Employer to the Hotel Worker(s) performing services for the customers from whom the Service Charges are collected. No part of these amounts may be paid to supervisory or managerial employees. The amounts shall be paid to the Hotel Worker(s) equitably and according to the services that are related to the description of the Service Charges given by the Hotel Employer to the customer. The amounts shall be paid to the Hotel Worker(s) in the next payroll following collection of an amount from the customer, including without limitation:
1. Amounts collected for banquets or catered meetings shall be paid equally to the Hotel Worker(s) who actually work the banquet or catered meeting;
2. Amounts collected for room service shall be paid to the Hotel Worker(s) who actually deliver food and beverage associated with the charge; and
3. Amounts collected for porterage service shall be paid to the Hotel Worker(s) who actually carry the baggage associated with the charge.
A. Hotels with 300 or More Rooms. On July 1, 2015, Hotel Employers with Hotels containing 300 or more guest rooms, or suites of rooms shall pay Hotel Workers according to the provisions in Section 186.02 of this article.
B. Hotels with 150 or More Rooms. On July 1, 2016, Hotel Employers with Hotels containing 150 or more guest rooms, or suites of rooms shall pay Hotel Workers according to the provisions in Section 186.02 of this article.
C. AHEZ Hotels. On July 1, 2015, AHEZ Hotel Employers shall pay AHEZ Hotel Workers solely according to the provisions in Section 186.02 of this article. Prior to July 1, 2015, AHEZ Hotel Employers shall pay their AHEZ Hotel Workers as provided below (consistent with the former Los Angeles Municipal Code (LAMC) Sections 104.104 A., 104.104 B. and 104.105 A.):
1. Wages. AHEZ Hotel Employers shall pay AHEZ Hotel Workers a wage of no less than $11.03 per hour with health benefits, not including gratuities, Service Charge distributions, or bonuses, or $12.28 per hour without health benefits, not including gratuities, Service Charge distributions, or bonuses.
2. Compensated Days Off. AHEZ Hotel Employers shall provide AHEZ Hotel Workers at least 12 accrued compensated days off per year for sick leave, vacation, or personal necessity at the AHEZ Hotel Worker’s request. AHEZ Hotel Employers shall also permit AHEZ Hotel Workers to take at least an additional ten accrued days a year of uncompensated time to be used for sick leave for the illness of the AHEZ Hotel Worker or a member of the AHEZ Hotel Worker’s immediate family where the AHEZ Hotel Worker has exhausted their compensated days off for that year.
3. Rate. Health benefits under this article shall consist of the payment of at least $1.25 per hour towards the provision of health care benefits for AHEZ Hotel Workers and their dependents. Proof of the provision of these benefits must be kept on file by the AHEZ Hotel Employer, if applicable.
No Hotel Employer shall discharge, reduce in compensation or otherwise discriminate against any Hotel Worker for opposing any practice proscribed by this article, for participating in proceedings related to this article, for seeking to enforce the Hotel Worker’s rights under this article by any lawful means, or for otherwise asserting rights under this article.
A. A Hotel Worker claiming violation of this article may bring an action in the Superior Court of the State of California against a Hotel Employer and may be awarded:
1. For failure to pay wages required by this article – back pay for each day during which the violation continued.
2. For retaliatory action – reinstatement, back pay and other legal or equitable relief the court may deem appropriate.
3. For Willful Violations, the amount of monies to be paid under Sections 186.07 A.1. and 2. of this article shall be trebled.
B. If a Hotel Worker is the prevailing party in any legal action taken pursuant to this article, the court shall award reasonable attorney’s fees and costs as part of the costs recoverable.
All of the provisions of this article, or any part of the article, may be waived in a bona fide collective bargaining agreement, but only if the waiver is explicitly set forth in that agreement in clear and unambiguous terms. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute or be permitted as a waiver of all or any part of the provisions of this article.
This article is not intended to cause reduction in employment or work hours for Hotel Workers. Therefore, the City Controller may grant a waiver from the requirements of this section if a Hotel Employer can demonstrate to the City Controller by compelling evidence that compliance with this article would force the Hotel Employer, in order to avoid bankruptcy or a shutdown of the Hotel, to reduce its workforce by more than 20 percent or curtail its Hotel Workers’ total hours by more than 30 percent. The City Controller shall reach a determination only after reviewing and auditing, if necessary, the Hotel Employer’s financial condition, with such review or audit paid for, at rates set by the City Controller, by the Hotel Employer. Any waiver granted by the City Controller is valid for no more than one year. The City Controller’s determination on a waiver application shall be subject to review and reversal by a two-thirds vote of the City Council within ten business days of the City Controller’s determination.
Except for bona fide collective bargaining agreements, any waiver by a Hotel Worker of any or all of the provisions of this article shall be deemed contrary to public policy and shall be void and unenforceable. Any attempt by a Hotel Employer to have a Hotel Worker waive rights given by this article shall constitute a Willful Violation of this article.
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