Library Archives

 
Dana Kravetz

Pro-employer stars are aligning in Washington, D.C., that can only benefit the hospitality industry. What began with President Donald J. Trump's appointment of conservative Alexander Acosta as the United States Secretary of Labor, has been followed by his nomination of Republicans Marvin Kaplan and William Emanuel to fill vacancies on the National Labor Relations Board - moves that are decidedly a boon to business. Under Secretary Acosta, the Department of Labor withdrew guidance put in place by the Obama administration on the joint employment issue, a positive step for hotel and resort owners, operators and franchisors. If confirmed, Messrs. Kaplan's and Emanuel's presence on the NLRB is certain to lead to the unraveling of various labor-related actions also deemed unfavorable to employers, hoteliers included. Read on...

Benjamin Ebbink

Responding to years of pressure from union advocates and their allies, the California Occupational Safety and Health Administration (Cal/OSHA) has proposed a first-in-the-nation, industry-specific rule aimed at hotel housekeepers. If enacted, this proposal would greatly impact the industry in California (as well as operators who conduct business in multiple states including California). In addition, as California tends to lead the nation in employment and workplace safety standards, operators in other states should monitor this proposal closely - what happens in California may come to your state next! Read on...

Steven D. Weber

Taking measures to protect your hospitality organization's trade secrets before filing or defending against a lawsuit may significantly increase your organization's chances of obtaining a favorable result in any lawsuit related to the misappropriation of trade secrets. While there are many ways to protect information, hospitality organizations need to be educated on what the law applicable to them considers to be "reasonable" steps that provide the secrecy that is required under the circumstances. This article explores how some courts have interpreted what is reasonable or adequate protection of information such that the information may qualify as a trade secret. Read on...

John Mavros

Retaliation continues to be the most common claim brought against employers before governmental agencies and in the civil court system. According to Equal Employment Opportunity Commission (EEOC), the agency that enforces Federal labor laws, the EEOC received 42,018 charges of retaliation in 2016. That means that a retaliation claim was asserted in 45.9% of all charges submitted. This is more than discrimination based on race and more than discrimination based on disability. Even more concerning is the consistent uptick in retaliation charges, which have increased in number every year since 1997. So, what can employers do to protect themselves against this ever-growing threat? Read on...

Dana Kravetz

Eighteen months since the National Labor Relations Board (NLRB) revised its standard for the imposition of joint employer liability, and hoteliers remain in a state of legal limbo, unsure what 2017 and beyond have in store on the issue. For those hotel and resort operators whose best response to the question, "how should we continue to move forward in the wake of BFI?" is a shrug of the shoulders, a current scorecard for your consideration. The NLRB shook the hotel franchisor/franchisee landscape with its jaw-dropping Browning-Ferris Industries of California (BFI) decision back in August 2015, which drastically eased the criteria for a company to be considered a joint employer. Read on...

Albert Pucciarelli

There are three options in alternative dispute resolution. Mediation, arbitration and expert determination. The third option - expert determination - whereby the parties who have been unable to resolve a dispute generally concerning a specific, technical matter, look to a specifically qualified individual to decide the matter for them. When we think about alternative dispute resolutions, our first thoughts are likely go to mediation and arbitration. This article, however, discusses the third option - expert determination. Read on...

John Mavros

Tip-pooling is a common method for restaurants and similar service businesses to allow back of the house staff and others to share in tips received from customers. However, the US Department of Labor's regulations and recent rulings by the Ninth Circuit have effectively made tip pooling a thing of the past. This article will explore the current state of tip-pooling laws and the effect that Donald Trump's pick for Labor Secretary, Andrew Puzder, may have on tip-pooling and other regulations in the years to come. Read on...

Steven D. Weber

Many of today's hospitality consumers are not only looking for a place to rest their head, but also for a one-of-a-kind experience. If the ingredients for such an experience are stored on computers, in e-mails, in manuals, or even in the heads of employees, then they are susceptible to misappropriation. The risk of misappropriation is compounded by the ease by which employees today may misappropriate those trade secrets by using their smart devices to take photographs, send e-mails, and transfer files. Waiting until the unthinkable happens is unacceptable. Read on...

Amy Bailey

There's a big red bulls eye in the hotel industry. In fact, accommodation and food services ranks #1 in sheer volume for wage and hour prosecutions by the Department of Labor. That's 24.4% of all the cases that have been brought since 1985. To put that number into perspective, hotels, restaurants, and bars—from the behemoths to the holes in the wall—have been required to pay more than $276 million in government prosecutions alone, with an average payout of $9.5k for every business affected. Read on...

Victoria Kane

Business planning for next year is in the works to increase revenue and profitability in uncertain economic times. Hotels are forecasting occupancy by predicting tourism trends affected by extreme weather, airline troubles, tax increases, and terrorism. However, if businesses don't have a risk management strategy for compliance with ever-changing laws affecting employment, benefits, safety, social media use, accessibility, and privacy, they are already way behind. To assist in the prioritization of a hotel's compliance strategy, this article highlights some of the top legal issues occurring in employment, but which directly impact operations. Read on...

Dana Kravetz

President-elect Trump is unlikely to support continued federal labor and employment agency activism in wage and hour and other employment-related matters. What does this mean in the context of the hotel industry? Can hotel owners and franchisors expect immediate relief? In the wake of the 2016 presidential election, we forecast a clear pro-business shift in labor and employment policy under Donald Trump. Republicans will assume control of not only the presidency, but both houses of Congress in 2017. Mr. Trump will also likely act quickly to appoint a conservative justice to the Supreme Court to replace Antonin Scalia, and he will possess the power to fill open seats as they arise on the 12 federal circuit courts. Read on...

Albert Pucciarelli

In my three prior articles on alternative dispute resolution, I discussed mediation, expert determination and arbitration. Resorting to the court system may be necessary only because the parties in their agreements did not provide for the resolution of disputes by one of the three alternative dispute mechanisms. Even so, as the dispute devolves to one that the parties will not resolve by negotiation alone, they may at any time agree to mediate, submit the matter to an expert or arbitrate. Read on...

John Mavros

The Department of Labor (DOL) Final Rule promulgated new regulations that will go effect on December 1, 2016. All employers need to know how these regulations will change the test for exemption to understand what they need to do in response. This article will review the basics for the most common exemptions from overtime under Federal law and will also provide an executive summary of the key changes made by the Final Rule. One of the biggest myths in the workplace is that a "manager" who is paid a salary is automatically an exempt employee. Read on...

Albert Pucciarelli

In my two prior articles on alternative dispute resolution, I discussed mediation and expert resolution. In ascending order in terms of "severity" of the matter in dispute, the next alternative for resolving disputes is arbitration. By "severity", I am referring to the either the complexity of the question to be resolved where legal interpretations, document discovery and witness testimony, even expert witness testimony, may be utilized by the parties to present their side of the dispute. In short, the matter to be arbitrated typically is not unlike matters over which parties go to court, but for reasons we will explore, arbitration may be preferable. Read on...

Charles B. Rosenberg

Investing abroad may present lucrative opportunities in the form of new markets and customers. Hospitality companies, however, often face unique challenges when doing business abroad. For example, in 2009, Venezuelan President Hugo Chavez ordered the expropriation of a Hilton-run hotel on the resort island of Margarita in Venezuela to help develop tourism projects within a socialist framework. Similarly, in 2011, the Sri Lankan government declared ownership of a Hilton-run hotel in Colombo, Sri Lanka following a rent-related dispute with the foreign investor. Hospitality companies considering investing abroad thus should be aware of the tools that may be available to protect their international investments. Read on...

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Coming up in March 2019...

Human Resources: An Era of Transition

Traditionally, the human resource department administers five key areas within a hotel operation - compliance, compensation and benefits, organizational dynamics, selection and retention, and training and development. However, HR professionals are also presently involved in culture-building activities, as well as implementing new employee on-boarding practices and engagement initiatives. As a result, HR professionals have been elevated to senior leadership status, creating value and profit within their organization. Still, they continue to face some intractable issues, including a shrinking talent pool and the need to recruit top-notch employees who are empowered to provide outstanding customer service. In order to attract top-tier talent, one option is to take advantage of recruitment opportunities offered through colleges and universities, especially if they have a hospitality major. This pool of prospective employees is likely to be better educated and more enthusiastic than walk-in hires. Also, once hired, there could be additional training and development opportunities that stem from an association with a college or university. Continuing education courses, business conferences, seminars and online instruction - all can be a valuable source of employee development opportunities. In addition to meeting recruitment demands in the present, HR professionals must also be forward-thinking, anticipating the skills that will be needed in the future to meet guest expectations. One such skill that is becoming increasingly valued is “resilience”, the ability to “go with the flow” and not become overwhelmed by the disruptive influences  of change and reinvention. In an era of transition—new technologies, expanding markets, consolidation of brands and businesses, and modifications in people's values and lifestyles - the capacity to remain flexible, nimble and resilient is a valuable skill to possess. The March Hotel Business Review will examine some of the strategies that HR professionals are employing to ensure that their hotel operations continue to thrive.