In recent years, employers in the hospitality industry have faced an onslaught of claims and litigation under the Fair Labor Standards Act, the federal law that establishes minimum wage and overtime requirements. Among the kinds of cases that employers have confronted are those alleging violations of the Department of Labor's "80/20" rule for tipped employees. This "rule" provided that an employer could not take a "tip credit" where a tipped employee spent over 20 percent of his or her time on activities that did not directly generate tips. The following discusses the rule and the significant changes made by the DOL. READ MORE

Corporate mergers and acquisitions activity (M&A) has skyrocketed in recent years. By some estimates, global deals are projected to surpass $4 trillion by the end of 2018, which would be the highest amount ever recorded in a single year. The hospitality industry has seen a similar surge in mega-deals over the last several years. While economic factors have contributed to this rise, hospitality has also been shaped by industry-specific influences that are driving companies to acquire and consolidate with others. This article will examine common legal issues that arise during M&A transactions involving hospitality companies and will offer guidance on how both sides of a deal should address the risks and liabilities. READ MORE

A persistent labor shortage means the hospitality industry is facing tough workforce questions: How can a hotel deliver the level of service it promises with a smaller staff? Will tougher competition for workers impact average wage rates in a historically low-paying industry? What solutions, like cross-utilization, can hotels implement now? And what solutions will require larger-scale legal and societal change? Among the more transformational ideas this article will explore are rethinking current minimum shift requirements and looking to nontraditional sources, from retirees to training the formerly incarcerated, for future hospitality work. READ MORE

Hotels go to great lengths to present a carefully crafted image to their guests and, hotel employees play an integral role in making a mere marketing strategy become a revenue generating reality. One way to ensure that employees effectively communicate the hotel's desired image can be accomplished by a written dress code and personal appearance policy. This policy can be as detailed as management desires. Regardless, to avoid liability, hotels need to be aware of both state and federal laws that govern gender, gender identity, gender expression and religious expression, in the workplace and how those laws interact with their dress code policy. READ MORE

The California Consumer Privacy Act of 2018 is a threshold event that will change how all businesses collect, retain and treat personal information. No industry is more challenged by the law than the hospitality industry, where the "heads in beds" part of the equation is driven by guest data. The Act will impact how hotels do business, ranging from their reservation procedures to new challenges on their ability to implement guest loyalty programs, one of the key means of creating brand loyalty. Hotel companies, whether they be owners, managers or brands, must act now to comply with the Act. READ MORE