Retaliation lawsuits are the most common claims brought against employers before governmental agencies and are increasing in frequency in the civil court system. According to the Equal Employment Opportunity Commission (EEOC), in 2013, a retaliation claim was made in 41.1% of all charges submitted to the EEOC. This is more than discrimination based on race and more than discrimination based on disability. Even more concerning is the consistent uptick in retaliation allegations. Retaliation claims have increased in number every year since 1997. So, what can employers do to protect themselves against this ever-growing liability? First, employers must understand what retaliation is. Next, employers must be able to issue spot when a particular set of facts poses a high risk for a retaliation claim. This article will attempt to do both. READ MORE

Tension between hotel owners and hotel management companies comes as no surprise during tough economic times. But even in times of improved economic prosperity, some hotel owners are intolerant of management companies that fail to manage assets in the most effective and profitable manner possible. This results in certain owners seeking, or being compelled, to convert their asset to a different brand, or in some cases no brand at all. They do so to protect their long-term economic interests in markets that have proven to be cyclical. In this piece, we explore important considerations regarding the respective rights and responsibilities of owners and managers in such circumstances. READ MORE

The past year has witnessed a continued surge in the number of federal wage and hour cases filed against businesses throughout the United States, including those in the hospitality industry. At the same time, the U.S. Department of Labor has engaged in enforcement initiatives directed at hotels, restaurants and bars. All of this has occurred against a backdrop of proposed regulatory reform that could affect the way in which hotel and restaurant operators compensate their employees. This article reviews some of the more important developments in these areas. READ MORE

The relationship between hotel owners and managers continues to evolve. Hotel management agreements historically were long-term. Fifty to sixty year terms were common. However, in the last few years, hotel owners have successfully negotiated shorter contract durations and other more favorable terms, even from the largest and most sought-after major brands. This trend is likely to continue and expand as brands realize that hotel owners have the power to terminate so-called no cut, long-term hotel management agreements, despite contrary provisions in the contract which courts now routinely ignore as a matter of public policy. READ MORE

New rules allowing the sale of condo hotel rooms as investment securities will affect not only the way that condo hotels are marketed, but the way they are structured. Mandatory participation by owners in a rental pool may allow hotel operators greater flexibility and control and ensure a critical mass of available room inventory and permit operation of a condo hotel as a true “common enterprise”. READ MORE

The problem of employee theft in hotels is an age-old problem. Businesses lose billions of dollars each year in employee theft. And hotels, by nature, present numerous opportunities for employee theft from guests and the house. Theft in a hotel can take many forms - from identity theft to credit card fraud to theft of merchandise and guest property. No employer hires an employee thinking that the employee is someday going to steal. Hotels need to take steps to prevent theft and be cautious in taking action against an employee after a suspected theft. Both have practice and legal implications. READ MORE

As this article is being written, two armed police officers guard the front of the building that houses our law offices, and have been a fixture since the UN was in session over three weeks ago. The officers first appeared at the same time that government agents encased in flack jackets, bearing machine guns, and accompanied by canine units appeared on the streets outside of Grand Central Terminal and the New York Public Library. Last week also brought news that NYC's Office of Emergency Management ran a training exercise that simulated an emergency response to a 10-kiloton nuclear device exploding in Times Square, which according to the simulation, killed 100,000 people instantly, took down skyscrapers for a half-mile radius and inflicted damage up to two miles away, all as a radiation cloud swept over the entire metropolitan region. No doubt, the nation's safety and security are still critical issues. READ MORE

What steps do Hotel HR Managers need to take to determine if the Affordable Care Act (the “ACA”) requires that changes be made to the healthcare benefits offered to employees by January 1, 2015? Although the seasonal exception may apply to employees in the hotel industry, the fact that the definition for “full time” employees under the ACA lowers the threshold number of hours an employee needs to work to be considered a “full time” employee from 40 hours a week to 30 hours a week, requires that HR Managers recalculate whether the fifty (50) full-time of full-time equivalent employees cutoff has been met. In addition to factors that must be considered in determining if the ACA applies to your hotel, this article outlines what HR Managers need to do to prepare for the January 1, 2015 effective date of the ACA. Risks for non-compliance are outlined so that HR Managers are aware of how to act prudently in protecting businesses from unnecessary costs that can be avoided through understanding the law and taking responsive action. READ MORE

Virtually everyone has access to computer technology. This presents significant challenges for establishments seeking to protect their proprietary information. A tiny thumb drive can enable the download of thousands of documents of critical information. Images and data can be captured in an instant with cell phones and transmitted to multiple entities. Add to this the reality that businesses need employee talent to thrive, but a competitive economy also poses the possibility that current employees could be future competitors. What can an establishment do to protect their proprietary information? In this article we will discuss measures to reduce the risk. READ MORE

Deep within the filing cabinets of every hotel's Human Resources department hides a ticking time bomb: the Form I-9. Each of these federally-mandated, deceptively short forms holds the potential of inflicting thousands of dollars of damage on an unsuspecting employer. When the Department of Homeland Security's (DHS) Immigration and Customs Enforcement (ICE) division comes calling, as its audit numbers show it increasingly is, simple paperwork errors can be costly and criminal prosecution can follow. Learn about recent enforcement actions against the Hotel industry and advice on how to ensure your company is in full compliance. READ MORE

In the hotel industry, the myriad of complex business relationships also creates legal land-mines for the unwary. In that regard, hotel asset managers, hotel operators and franchisors should be extremely mindful of their legal obligations to their client, the owner of the hotel. Even if the hotel is a single asset, there are potentially four groups that, for a better term, have their fingers in the pie - the owner, hotel asset manager, hotel operator and franchisor. But at the end of the day, each of these relationships confer legal rights for the benefit of the owner and potentially, to the detriment of the asset manager, hotel operator and franchisor. READ MORE

The hospitality industry has become an ever increasing target for cybercrimes and accordingly, for related litigation. Although the prevailing legal standard requires hotels and other businesses to take reasonable steps to protect customers' personal information, juries tend to hold the hospitality industry to higher standards. Jurors relate to guests on vacation and believe they should not have to bring with them the same level of vigilance they apply to their everyday lives. With expectations heightened, how should businesses approach protecting customers' personal information from cybersecurity threats in this ambiguous regulatory environment, and what steps can be taken to mitigate exposure to cybersecurity lawsuits? This article explores these issues in the context of agency guidance and recent federal court opinions issued in the FTC's pending enforcement action against Wyndham Worldwide Corporation and related entities. READ MORE

As a transactional attorney working in the hospitality sector, I work with companies and individuals having a variety of different levels of experience in working with outside attorneys. If you don't work with attorneys often, you may be unsure of what to expect or how to manage the relationship. Those who work with attorneys more regularly may wish to increase their level of satisfaction and efficiencies. Not surprisingly, when working with an attorney, good communication is the key to maximizing the relationship. Prior to forming my own legal practice, I hired and supervised many outside attorneys on behalf of a large corporation, and observed a wide range of working styles and personalities. Here at Zeidel & Associates, we strive to apply best practices. Here are a few tips on how to help the attorney of your choice work best for you: READ MORE

To avoid landing in court, hotels must stay on top of the latest rules and regulations. In January, the Internal Revenue Service (IRS) issued new guidelines for tips and service charges. In addition to the IRS' new rules, the Fair Labor Standards Act (FLSA), which issues standards for the basic minimum wage and overtime pay, has a separate set of guidelines for service workers, which if not followed, makes the hotel industry vulnerable for lawsuits. Since each state has its own laws regarding service charges and tipping, hotel operators must ensure that they are compliant with their state regulations to avoid legal issues. READ MORE

For the hotel industry, 2014 may well go down as the year of rebranding. This is in response to the intense competition and the need to cater to a new audience: the millennials. To ensure a successful transition, properties should consider business and legal implications to avoid costly time-consuming problems especially intellectual property issues. To those unfamiliar with legal jargon, it boils down to creating and protecting strong trademarks, trade dress, and an effective web presence. These are essential to debranding and rebranding to give a brand a competitive edge in the ever-growing hotel industry. READ MORE

Thanks to the compromises that brought about the failed social experiment of Prohibition in 1936, the laws governing the manufacture and sale of alcohol in the U.S. are a patchwork quilt that vary wildly and widely from state to state. Federal law lays over this patchwork of state laws to create a layered web and, together, state and federal laws make alcohol one of the most heavily regulated - if not the most heavily regulated - consumer-oriented products available at retail without a prescription in the world. READ MORE