The Second Appellate District reversed judgments with directions. The court held that a City of Los Angeles ordinance that required hotels that charged patrons for certain services to pay those charges to the hotel workers who performed the services for which such charges were imposed was not preempted by the Labor Code.
The City of Los Angeles enacted the Hotel Service Charge Reform Ordinance. The ordinance required non-unionized hotels in a defined business corridor near Los Angeles International Airport (LAX) to pass along mandatory service charges that those hotels imposed on patrons to the workers who rendered the services for which those charges were collected.
