What's Happening?
The Santa Monica Proper hotel, known for its luxurious accommodations, is facing a class-action lawsuit filed in the L.A. County Superior Court. The lawsuit alleges that the hotel has failed to pay its employees the minimum wage mandated by the Santa Monica Hotel Worker Living Wage Ordinance. The ordinance sets the minimum wage for hotel workers at $21.01 as of July 2025. Plaintiffs Chelsea Kupitz and Eric Block, who have worked at the hotel since 2019, are leading the suit on behalf of approximately 100 workers. The complaint claims that the hotel has not adjusted its wages in accordance with the ordinance since July 2022, resulting in employees earning less than the cost of some menu items at the hotel’s restaurant. Proper Hospitality, the company owning the hotel, disputes the allegations, asserting that their compensation and benefits exceed ordinance requirements.
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Why It's Important?
This lawsuit highlights ongoing tensions between luxury establishments and labor rights in the hospitality industry. If the allegations are proven, it could lead to significant financial penalties for the hotel and set a precedent for other luxury hotels in the area. The case underscores the importance of compliance with local wage ordinances, which aim to ensure fair compensation for workers in high-cost areas like Santa Monica. The outcome could influence labor practices and wage policies across the hospitality sector, potentially affecting thousands of workers and impacting the economic dynamics of the tourism industry in Los Angeles County.
What's Next?
The plaintiffs are seeking a jury trial and compensatory damages, including back pay and penalties for violations of the ordinance and California Labor Code. They also request a court order for the hotel to display minimum wage rates prominently and have an independent party monitor payroll compliance for up to three years. As negotiations for a new collective bargaining agreement continue, the hotel may face increased scrutiny from labor groups and public officials advocating for higher wages. The case could prompt other workers in similar situations to come forward, potentially leading to more legal challenges against luxury hotels.
