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Construction Wages Debate Heats Up Over $32 LA Pay Proposal

LA considers boosting construction wages to $32.35 per hour on multifamily projects to address labor shortages and housing demand.
LA considers boosting construction wages to $32.35 per hour on multifamily projects to address labor shortages and housing demand.
  • LA City Councilmembers Curren Price and Hugo Soto-Martínez introduced a motion to study a $32.35 minimum wage, plus a $7.65/hour healthcare credit, for construction workers on multifamily residential projects under 85 feet and with 10+ units.
  • The wage hike is framed as essential to rebuilding efforts post-fires and addressing labor shortages amid immigration crackdowns and worker exploitation concerns.
  • The motion has backing from construction unions, housing advocates, and several councilmembers, but faces strong opposition from business groups that warn it could stifle development.
Key Takeaways

Raising The Floor

Los Angeles is considering a significant wage bump for construction workers on mid-sized multifamily housing, reports TheRealDeal. Councilmembers Curren Price and Hugo Soto-Martínez have introduced a motion calling for a city-led study on construction worker pay. The study would explore setting a $32.35 per hour minimum wage for workers on residential projects. It would apply to buildings with 10 or more units that are under 85 feet tall. The motion also includes a proposed $7.65 per hour healthcare benefit credit.

The proposal comes as the city confronts rebuilding needs following recent wildfires and seeks to address a dwindling labor force amid fears stemming from federal immigration enforcement. The measure aims to improve job conditions and attract more local workers to the construction trades.

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Framing The Argument

Supporters argue the wage hike would help stabilize a fragile labor pool. “Construction workers who build housing in Los Angeles should be able to afford to live in Los Angeles,” Soto-Martínez said. Price emphasized the motion is meant to curb an “underground economy” exploiting vulnerable laborers while the city faces an urgent housing shortage.

The proposal excludes union projects that already meet prevailing wage and benefits standards.

Stakeholders Line Up

Several councilmembers have joined in support, alongside construction unions and pro-housing groups like Abundant Housing LA. Union leaders say many workers cannot afford housing despite being responsible for building it.

However, the business community is raising red flags.Stuart Waldman, president of the Valley Industry and Commerce Association, called the proposal “absolute insanity.” He warned that added wage mandates, combined with existing costs from policies like Measure ULA, could push developers to stop building in Los Angeles altogether.

Next Steps

The motion will move to a council committee for further review. A similar wage initiative for hotel and airport workers previously survived repeal efforts, suggesting the city may be willing to press forward despite business resistance.

If adopted, this move could set a new benchmark in urban labor policy as Los Angeles attempts to balance labor equity with housing development goals.

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