Labor & Employment: Think Locally, Act Accordingly
A New Mantra in Hospitality
By Dana Kravetz Managing Partner, Michelman & Robinson, LLP | October 01, 2017
The matters weighing on the minds of hotel and resort owners and operators are many: average daily rates, occupancy levels, market penetration, revenue generation, operating costs, growth trajectories, tourism trends, customer service demands, real estate concerns, budget constraints, inventory management, cyber security and effective marketing strategies are a few of the major ones. Labor and employment issues are an unusually significant source of concern for hotel executives as well, demanding a disproportionate amount of their attention given the burdensome legal requirements imposed upon employers.
On the employment front, better days for hoteliers and corresponding trouble for their employees have been forecasted as a consequence of President Trump's imprint upon the Department of Labor and National Labor Relations Board. But the optimistic outlook for hotels and resorts, at least on the national stage, is tempered in many jurisdictions by state and local laws that are decidedly pro-labor. And beyond the enactment of employee-friendly legislation, local activism concerning a breadth of other issues - including hotel privacy - is also impacting the hospitality business. Taken together, it is worthwhile to address two questions of great importance within the industry: notwithstanding the messages emanating from Washington, D.C. that are sympathetic to business, what is happening at the grassroots level that relates to hotel and resort operations, and does local regulation even matter?
State and Local Ordinances
The minimum wage, paid family leave, employee discrimination and safety, tip credits, an employer's right to inquire about the salary history of job candidates, and the ability of police to search hotel guest registers are amongst the focus of ongoing state and local lawmaking that is keeping hoteliers on their toes. A brief survey:
In recent years, the minimum wage has been on the rise throughout the U.S. by virtue of ballot initiatives and legislation passed in several states, including Alaska, Arizona, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington and West Virginia. Minimum wage increases have also been enacted by way of local ordinances in cities such as Albuquerque, Las Cruces, Oakland, Palo Alto, Sacramento, San Diego, San Francisco, Santa Monica, Seattle, Tacoma and Washington, D.C.