LA hotel that charges $2,600 a night pinches pennies from poorest employees

The ultra-luxurious Santa Monica Proper hotel faces a class-action lawsuit alleging it has failed to pay workers minimum wage, sometimes compensating them less per hour than the $20 it charges guests for a bowl of hummus. Filed this week in L.A. County Superior Court, the lawsuit represents approximately 100 employees who claim they've been underpaid for years while the hotel charges guests between $600 and $2,600 per night.

According to the complaint, the Santa Monica hotel, which promises guests "every moment is considered through a luxury lens," has allegedly violated the Santa Monica Hotel Worker Living Wage Ordinance. This local law mandated a minimum wage of $19.73 in July 2023, increasing to $20.32 in July 2024, and currently stands at $21.01 per hour. The hotel never formally sought a waiver claiming inability to pay these rates.

"No luxury hotel is above the law," attorney Alexander Winnick told The LA Times. "Sometimes it takes courageous workers to stand up to protect everyone's rights." The plaintiffs, servers Chelsea Kupitz and Eric Block, seek a jury trial, back pay, penalties of $100 per day per affected worker, and a court order requiring the hotel to display minimum wage rates and submit to independent payroll monitoring. Representatives for the Santa Monica Proper hotel did not immediately respond to a request for comment.

Previously:
Economists reverse claims that $15 Seattle minimum wage hurt workers, admit it was largely beneficial
Full time minimum wage workers can't afford the rent on a 2-bedroom apartment anywhere in the USA
McDonald's sues to block Seattle's minimum wage