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Room ranges from $600 to $2,600 per night, the very luxurious Santa Monica proper hotels have failed to pay employees the minimum wage and in some cases have been accused of paying more per hour than charging guests for a bowl of hummus.
A class action lawsuit was filed this week in LA County Superior Court against the luxury hotel on behalf of around 100 workers who have been allegedly low-paid for many years.
The 263-room hotel, according to its website, promises an experience “every moment is considered through a luxury lens” and boasts a well-known restaurant, rooftop pool, fitness centre and an award-winning spa.
“The dining options feature items such as a $21 mocktail and a $250 Wagyu beef steak,” the complaint states. “Despite these premium prices, a proper hotel will not pay a minimum wage to workers.” Representatives from the appropriate hotel in Santa Monica did not immediately respond to requests for comment.
In Santa Monica, all hotel staff are entitled to the minimum wage as stipulated by the Santa Monica Hotels Workers’ Living Ordinance, set at $19.73 in July 2023, jumping to $20.32 in July 2024, and a year later at $21.01. These rates are similar to those set by the LA City Minimum Wage Ordinance for Hotel Workers.
Plaintiffs Chelsea Cupitts and Eric Bullock are servers who have worked at hotels since 2019 and pursue class action lawsuits on behalf of all employees whose rights are allegedly violated under the Santa Monica Ordinance.
“Luxury hotels don’t go beyond the law,” lawyer Alexander Winnick told The Times. “The living wages of hotel workers in Santa Monica reflect the city’s commitment to a fair and vibrant tourism industry, and it is about staying competitive with other cities.
In Santa Monica, the only way hotels can receive exceptions to the ordinance is to apply for a one-year exemption and to force compliance to shut down or reach a collective bargaining agreement with employees, including the exemption.
The appropriate hotel in Santa Monica has never formally sought a waiver from a city that claims it cannot afford interest rates, according to the complaint. The hotel had the language in a previous collective bargaining agreement on avoiding wage rates in the ordinance, but the agreement expired in June 2023, the complaint states.
Since then, hotels have failed to raise wages in line with wages mandated by the ordinance. Many employees ended up earning hourly rates under $20, which are charged for a bowl of hummus at the hotel rooftop restaurant.
The complaint further argues that employees have been low pay since July 2022, as the language of collective bargaining agreements is not specific enough to constitute a formal waiver to the ordinance.
“They are [staff] The minimum wage required by the ordinance is systematically denied,” the complaint states.
The plaintiffs are seeking jury trials and compensation damages, including a refund to the workers. They are also seeking further penalties for violations of California’s labor laws, along with a $100 per day fine for a person whose rights are violated under the Santa Monica Hotel’s Workers’ Living Wage Ordinance.
They also seek court orders requiring hotel workers to prominently display minimum wage rates and independent parties to monitor hotel payroll compliance for two to three years.
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