Hospitality Law
John Mavros
  • Hospitality Law
  • Tip-Pooling Practices May be a Thing of the Past
  • 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...

Albert Pucciarelli
  • Hospitality Law
  • When to Use Expert Determination in Hotel Disputes
  • When we think about alternative dispute resolutions, our first thoughts are likely go to mediation and arbitration. This article, however, discusses a 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. Read on...

Steven D. Weber
  • Hospitality Law
  • Your Hospitality Industry Trade Secrets May be at Risk
  • 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
  • Hospitality Law
  • Why is the Hotel Industry a Target for FLSA Prosecutions?
  • 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...

Banks Brown
  • Hospitality Law
  • The Chink in the Armor of the Communications Decency Act
  • CDA § 230 is shorthand for Section 230 of the Communications Decency Act, 47 U.S.C. § 230 (2016). It is the law cited by short term rental companies (“STRC”), such as Airbnb, when they argue with city and state governments and in the courts that their businesses are not subject to state and local regulation. It is fair to say that the STRCs are of the opinion that city and state governments are nearly powerless to regulate them in any way whatsoever, absent their consent. Read on...

William A. Brewer
  • Hospitality Law
  • The Challenges and Opportunities of Foreign Investment in the U.S. Hospitality Market
  • They’re Coming to the U.S.A. Foreign investors are making headlines as they take ever bigger positions in the U.S. hospitality market. Notably, the structure of the hotel management agreement (HMA) – a complex and often misunderstood instrument – has major legal implications for foreign owners and managers. In this article, we explore the friction between owners and operators whose interests are not always aligned – particularly during periods of economic downturn. Therefore, negotiating a proper HMA is critical to governing the relationship. Read on...

Theodore C. Max
  • Hospitality Law
  • Digital Marketing: Native Advertising and Online Influencers in the Hospitality Industry
  • The FTC’s has stepped up enforcement of social media advertising in the entertainment and fashion industries and this effort is likely to continue and expand to other industries. Advertisers and retailers in the travel tourism and hospitality industry need to be mindful to make sure that if any content is sponsored or any influencer or spokesperson is paid to promote a product or services online, a clear and conspicuous disclosure is required. It is possible that FTC enforcement also may soon target individual influencers and require clear and conspicuous disclosures by them regarding the endorsement of products or services for compensation. Read on...

Lynn K. Cadwalader
  • Hospitality Law
  • The EB-5 Visa Program: The Outlook for 2017
  • Looking forward to 2017, the EB-5 Immigrant Visa Program will face both challenges and opportunities. Fortunately for the Hospitality Industry, hotels are still ideal projects for EB-5 financing. In this Article, I will discuss some of the major issues and impacts on the EB-5 Immigrant Visa Program anticipated for 2017, and review the benefits to financing hotels through the EB-5 Program. Read on...

David M. Samuels, Esq.
  • Hospitality Law
  • On Guard - The Shifting Landscape of Guest Privacy
  • When it comes to guest privacy, the operational landscape has changed dramatically over the last two years. Historically, “service” has referred to attending to guests’ needs in relation to such things as in-room amenities, quality of sleep, dining and entertainment options, cleanliness, etc. But, the book ends formed by the Supreme Court’s pronouncement in its 2015 Patel decision and the high-profile Erin Andrews matter in 2016, have created an entirely new operational landscape where protecting guest privacy must be an integral element of every hotel’s “service” model. Read on...

Anne  Alexander
  • Hospitality Law
  • Beyond the Twice-Used Towel: Using PACE Financing to "Green" Hotels
  • It is no secret in the hospitality industry that a tremendous amount of energy, water and other resources is required to serve guests. However, the industry as a whole has taken steps to become more energy and resource efficient within the last ten years. We are all familiar with the placards found in most hotel rooms today, asking guests to indicate whether they want their sheets and towels changed on a daily basis or whether they will use them again. While hotels historically washed sheets and towels every night even when there was no turnover in the room. Read on...

Luis J. Gonzalez
  • Hospitality Law
  • Tip the Scales in Your Favor by Providing Tipped Employees with Adequate Written Notice
  • Complying with the Fair Labor Standards Act (FLSA) and the Department of Labor’s (DOL) regulations for tipped employees continues to present challenges for hoteliers and others in the hospitality industry. While recent attention has been paid to proper tip pooling practices (employers requiring certain tipped employees to chip in a portion of their tips, which are then divided among a group of employees), equal attention must be given to the FLSA’s mandatory notice provision to tipped employees. A continuing trend in wage and hour lawsuits stems from the employer’s failure to give the tipped employee the required notice. Read on...

John R. Hunt
  • Hospitality Law
  • An Update on the Ability of the Police to Search Hotel Records
  • Last year, the U.S. Supreme Court issued a decision that placed restrictions on the ability of law enforcement officers to inspect hotel guest registers and other records. Many local laws, which had authorized unlimited police inspections, suddenly were rendered unconstitutional. This article reviews that decision and discusses the developments that have occurred in this area during the past year. Until recently, hotels in many jurisdictions routinely provided the police with access to their guest registers without much concern about the privacy issues that might be involved. After all, numerous cities and towns possessed ordinances that required hotels to collect specific guest information and allowed the police inspect the information upon request. Read on...

Francesca A. Ippolito-Craven
  • Hospitality Law
  • How Hotels Can Minimize the Bite of the Zika Virus
  • The Zika virus has created a potential myriad of legal issues that should be considered by hotel owners and operators in the United States and its territories, particularly in light of the fact that the World Health Organization (WHO) has declared that the Zika virus infection and its associated congenital and other neurological disorders continues to be a “public health emergency of international concern.” The U.S. Centers for Disease Control and Prevention (CDC) has also advised that pregnant women should consider postponing non-essential travel to locales that have been zoned areas of active transmission. Read on...

Justin Thompson
  • Hospitality Law
  • Legal Implications of Hotel Brand Proliferation
  • There is no denying the importance of a brand in the context of hotels. Branded hotels make up approximately 70% of the total rooms in the United States hotel system and are predicted to grow to 80% in the next 10 years. The somewhat recent explosion in new brands from existing hotel companies can be seen as significantly contributing to this growth. In the past 35 years, the number of brands has quadrupled. In fact, brand proliferation has become so ubiquitous that the top seven hotel companies now account for 90 different hotel brands. A discussion follows of some of the more salient legal issues that the recent explosion in hotel brands has produced. Read on...

Tyra Hilliard
  • Hospitality Law
  • Food Allergies and the Changing Application of the Americans with Disabilities Act
  • More than 15 million Americans, nine million of them adults, have food allergies. While handling special dietary requests is not a new issue for hotels, the practical and legal issues surrounding accommodating dietary restrictions are changing. According to Food Allergy Research & Education (FARE), food allergies are on the rise. Because nearly half of fatal food allergy reactions are caused by food consumed outside the home, it isn’t a far stretch to imagine that a significant number each year may occur in hotels. Eight foods are responsible for 90% of all allergic reactions in the U.S.: milk, eggs, peanuts, tree nuts, wheat, soy, fish, and shellfish. Read on...

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FEBRUARY: Social Media: Interacting with the Hotel Customer

Eugenio Pirri

In the service sector, people are the lynchpin of any business, and success or failure hinges upon them. Though this success can only be unlocked if employees are spotted, nurtured, engaged and developed; the key to which is great hotel leadership. In this exclusive article for Hotel Executive, Vice President for People and Organisational Development at luxury management company, Dorchester Collection, and author of Be A People Leader, Eugenio Pirri, explores what it takes to be a people leader in the 21st Century and why businesses across the world are currently experiencing a leadership deficit. Read on...

Marigrace McKay

Human Resource leaders in all business sectors are stumped by how to hire the talented employees needed by their businesses in order to meet company strategic objectives. This responsibility is especially difficult in the service sector of hospitality. In no other sector is the one-to-one personal connection more important, perhaps with the exception of medical providers. In hospitality, an employees’ air, attitude, a wrong word or gesture can be perceived badly by the customer – a kiss of death. Or, with another customer the same circumstances can be received with over the top joy, acclaim, compliments, and kudos – a big win! Read on...

Peter McAlpine

There is increasing awareness in the hotel industry that something intangible is missing in hospitality because generally speaking it is not making the sought-after emotional and energetic connection to the guest’s heart, which will increase revenue and make guests flock to the brand. Hospitality still feels energetically and emotionally weak in spite of all efforts to change this, and I would like to shed some light on why this is so. In short, the hotel industry would make the connection and revolutionise hospitality by changing from the mechanistic Newtonian worldview to the energetic Quantum worldview, which replaced it in 1925. Read on...

Roberta Chinsky Matuson

The U.S. labor market continues to tighten with The Bureau of Labor Statistics reporting a decline in the unemployment rate to 4.6 percent in November of 2016. The unemployment rate is even lower in many states and metropolitan areas. Unrealistic expectations and increased stress, due to staffing shortages, is causing many employees to reconsider their current work situations. Many will soon choose to depart. This will only add to the need for organizations to involve more than HR, if they are to fill job openings promptly or at all. Read on...

Coming Up In The March Online Hotel Business Review




Feature Focus
Human Resources: Inspiring a Journey of Success
In an increasingly competitive environment where hotels are competing to attract, and more importantly, to keep top talent, Human Resource managers are realizing the need to focus on improving their Employee Experience. Smart managers are embracing the idea of Employee Wellness which translates into a system of physical, mental, emotional, and purposeful well-being. Some organizations are even providing free counseling for their employees and their dependents. The goal is to nurture, support and engage with their employees in a way that increases productivity, improves customer service, enhances loyalty, and creates a more harmonious work environment for all. Along with this development is the need for more effective, ongoing training. Many HR managers rely on external training firms for this, but there is a growing trend which taps the experience and expertise that already exists within the organization. For example, younger employees likely have greater knowledge of social media which an older generation might struggle with. Harnessing this peer-to-peer learning can be an efficient and cost effective way of increasing skills, and as a result, the knowledge transferred is likely to be more acceptable and relevant. Finally, HR managers need to foster an environment that empowers people and taps into their full potential, inspiring a personal journey of success. The March Hotel Business Review will take a look at some of the strategies and techniques that human resource directors are currently developing in order to achieve success.