Los Angeles Ordinance No. 178084

Hotels in the LAX area have instituted the practice of adding a "service charge" of 15% to 20% of the bill for banquets and other large group events. Some hotels pass a portion of the service charge to the workers who actually performed the services, while other hotels retain the entire service charge. This ordinance requires LA-area hotels to pass the entire service charge on to the workers who actually performed the services for which the service charges are billed.