The ultra-luxurious Santa Monica Proper hotel — where rooms range from around $600 to $2,600 a night — has been accused of failing to pay its employees minimum wage and, in some cases, paying them less per hour than it charges guests for a bowl of hummus.
This week, a class-action lawsuit was submitted to the L.A. County Superior Court against the upscale hotel on behalf of around 100 workers who have allegedly been underpaid for years.
The 263-room hotel promises guests an experience where “every moment is considered through a luxury lens,” according to its website, and boasts two renowned restaurants, a rooftop pool, a fitness center and an award-winning spa.
“Dining options feature items like $21 mocktails and $250 wagyu steaks,” states the complaint. “Despite these premium prices, the Proper hotel does not pay its workers the minimum wage.” Representatives for the Santa Monica Proper hotel did not immediately respond to a request for comment.
In Santa Monica, all hotel staff are entitled to the minimum wage stipulated by the Santa Monica Hotel Worker Living Wage Ordinance — which was set at $19.73 in July 2023, jumped to $20.32 in July 2024, and a year later is $21.01. These rates are similar to those set by the city of L.A.’s minimum wage ordinance for hotel workers.
Plaintiffs Chelsea Kupitz and Eric Block are servers who have worked at the hotel since 2019 and are pursuing the class-action suit on behalf of all employees whose rights under the Santa Monica ordinance have allegedly been violated.
“No luxury hotel is above the law,” attorney Alexander Winnick told The Times. “Santa Monica’s hotel worker living wage reflects the city’s commitment to a fair and vibrant tourism industry and to keeping wages competitive with other cities. Sometimes it takes courageous workers to stand up to protect everyone’s rights.”
In Santa Monica, the only way hotels can receive an exception to the ordinance is by applying for a one-year waiver, arguing that compliance would force a shutdown, or by reaching a collective bargaining agreement with employees that includes a waiver.
The Santa Monica Proper hotel has never formally sought a waiver from the city claiming it is unable to afford the rates, according to the complaint. The hotel did have language in its previous collective bargaining agreement about sidestepping the ordinance’s pay rates, but that agreement expired in June 2023, the complaint states.
Since then, the hotel has failed to raise its wages in line with those mandated by the ordinance — leaving many employees earning an hourly rate that is less than the $20 charged for a bowl of hummus at the hotel’s rooftop restaurant, according to the complaint.
The complaint further alleges that the language in the collective bargaining agreement was not specific enough to constitute a formal waiver to the ordinance, and therefore, employees have been underpaid since July 2022.
“They [staff] have been systematically denied the minimum wages mandated by the Ordinance,” states the complaint. “This shortfall not only undercuts their livelihoods but highlights the glaring hypocrisy of a luxury establishment profiting handsomely while skimping on fair pay for those who make it shine.”
Plaintiffs are seeking a jury trial and compensatory damages including back pay owed to workers. In addition, they are asking for penalties of $100 per day per person whose rights were violated under the Santa Monica Hotel Worker Living Wage Ordinance plus further penalties for violations of the California Labor Code.
They are also seeking a court order requiring that the hotel prominently display hotel worker minimum wage rates and that an independent party monitor the hotel’s payroll compliance for two to three years.
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