Living Wage Making Life Hard for Hilton

The Los Angeles Airport Hilton has been hit with another lawsuit; this time of the class action variety, that alleges the hotel skirted the city’s living wage law by using a temp agency.

The lawsuit was filed Tuesday in Los Angeles Superior Court on behalf of two housekeepers and alleges that the hotel used a temporary employment agency, named Norma’s Corp., to hire temp-workers and pay those workers less than the city’s living wage. The city’s controversial living wage rate is currently at $10.30 per hour for employees who get health benefits and $11.55 per hour for those who don’t.

The lawsuit also alleged that Norma’s Corp. did not make the required contributions to unemployment and disability funds or social security. The suit seeks back pay for the workers and unspecified damages.

The Hilton has long been the most vocal opponent of the city’s effort to extend the living wage law to the 13 major airport-area hotels. The hotels are affected by the law because they are said to be directly benefiting from a city asset – the nearby Los Angeles International Airport – and should be subject to the law.

The Hilton has been hit with several lawsuits that center around alleged non-compliance of the living wage law. The former L.A.-based hotel giant tried to overturn, unsuccessfully, the city’s law through referendum in 2007. The 12 other hotels in the area eventually settled with the city and agreed to abide by the wage law. Hilton also sued the city in an effort to overturn the law, ultimately losing on appeal.

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