An ordinance passed by Santa Monica requires hotels and resorts that take in more than $5 million to pay employees a living wage of $10.50 an hour. Critics do not expect the law to hold up in court but proponents say the US Constitution allows reasonable regulation of businesses. Hotel owners and employees are unsure who will be covered by the law and how it will affect the bottom line.
See "'Living Wage' Ramifications Clear to Some", Oscar Johnson, Ofelia Casillas, Los Angeles Times, May 24, 2001