As reported here, two hotel associations have filed a lawsuit and are now seeking an injunction to stop the implementation of the Los Angeles Hotel Citywide Minimum Wage Ordinance (summarized here).
The motion for injunction claims: (1) That the ordinance is pre-empted by federal labor law; (2) that it “insidiously aids the Hotel Workers’ Union”; and (3) that association members will suffer “substantial and irreparable harm” because they will either be required to bargain with the Hotel Workers’ Union at a disadvantage, or forced into signing “neutrality” agreements. The motion for injunction is currently set for hearing on March 23, 2015.
Many hotels have been struggling with compliance efforts given the wide breadth of the ordinance as currently drafted, and are hoping for some clarity from the court. Stay tuned for more updates.