The Los Angeles City Council Tuesday directed staff to commission a study analyzing the effects of implementing a minimum wage increase for construction workers building mid-size residential developments in the city.

Council members voted unanimously to approve a motion introduced by Councilman Curren Price in September alongside colleagues Hugo Soto-Martinez, Eunisses Hernandez, Bob Blumenfield, Heather Hutt and Ysabel Jurado. The council wants to raise the minimum wage for construction workers from $18 an hour to nearly $32.50 an hour, and add an additional health care credit of $7.65 per hour.

Council members also asked staff to examine alternative rates that may minimize potential negative impacts.

Council members also requested the study of wages by construction project type, industry employment, housing construction development, individual earning and economic impacts to the L.A. and regional economy.

The council said raising wages for construction workers is necessary because of the need for more housing and rebuilding after the Palisades Fire. Additionally, members cited concerns about how federal immigration policies have impacted the construction industry.

“In order to maintain and attract more workers into the mid-size residential construction industry to build the necessary housing supply our city desperately needs, we need to set a Residential Construction Minimum Wage, and address the high levels of wage theft and workers exploitation in this trade,” the motion said.

City staff are expected to solicit feedback from impacted industries and trades such as the Building Industry Association of Southern California, Los Angeles Builders Association, the Council of Infill Builders, the Los Angeles Area Chamber of Commerce, as well as unions representing construction workers such as the Los Angeles/Orange County Building Trades Council and the Western States Regional Council of Carpenters.

Neither the Southern California Construction Union nor the Building Industry Association of Southern California immediately responded to a request for comment.

Earlier this year, city officials approved a minimum wage increase for hotel and airport workers. Those workers are expected to earn $30 an hour by 2028 — when the Olympic and Paralympic Games come to Los Angeles. Proponents argued the increase will allow workers to reap some of the economic benefits that will result from the international event.

Critics of the policy argued it will lead to layoffs and strain businesses already impacted by federal tariffs and other trade policies.

Wow this rise in labor costs will cost construction costs to rise tremendously. Almost doubling the minimum wage is crazy. You would think if the builders were extremely profitable and needed more labor wages would rise right? I understand the goal but the path to get there is misguided. In my opinion