A three judge panel of the 9th Circuit Court of Appeals has allowed a lower court ruling to stand, rejecting a challenge brought against the Los Angeles Fair Wage Ordinance. The 2014 fair-wage law required hotels with more than 150 hotel rooms to pay their workers a minimum of $15.37 per hour and was challenged by the American Hotel & Lodging Association along with the Asian American Hotel Owners Association in federal court. Last year, their request for an injunction was denied at the District Court level and the groups appealed alleging that the ordinance interfered with labor-management relations and hence, was pre-empted by federal law. The appeals court found in a 14 page decision that “the wage ordinance altered the backdrop of negotiations, not the mechanics of collective bargaining”, and thereby rejected the hotel industry’s pre-emption argument. Whether the industry chooses to appeal again to the Supreme Court of the United States remains to be seen.