Hospitality Industry

News & Analysis as of

New York Department of Labor Increases Minimum Tipped Wages

On February 24, 2015, the Acting Commissioner of the New York State Department of Labor adopted the recommendations set forth by the three-member New York State Department of Labor Wage Board affecting tipped workers in the...more

NYS Acting Commissioner of Labor Accepts the Wage Board’s Recommendation to Increase the Minimum Wage for Tipped Employees in the...

New York State’s Acting Commissioner of Labor, Mario Musolino, issued an Order today, accepting most of the recommendations made by the Hospitality Industry Wage Board, including the recommendation to increase the minimum...more

Trump Taj Mahal Fined Record $10 Million for Inadequate AML Program

As disclosed recently in a bankruptcy court filing, on January 27, 2015, the Financial Crimes Enforcement Network (“FinCEN”) imposed a $10 million civil money penalty pursuant to the Bank Secrecy Act (the “BSA”) on Trump Taj...more

Succession planning for the family-owned hospitality business

Succession planning for the family-owned hospitality business: protecting your family and your business - The hospitality industry has been kind to families over the centuries, providing a good living for many, and...more

May an Innkeeper Legally Limit the Age for Accepting Children as Guests?

The Pennsylvania Innkeepers’ Rights Act (“Act”), effective December 30, 1996, allows Innkeepers to deny, without liability, accommodations, facilities or privileges to persons who do not demonstrate the financial ability to...more

2015 Wage and Hour Law Update for Hospitality Industry Employers in New York

This Employment Law Spotlight blog post highlights important changes to New York’s wage and hour laws covering private employers in the hotel and restaurant industries, not including resort hotels. These changes are already...more

New York Wage Board Recommends $7.50 Hourly Wage for Tipped Workers

Under a proposal recommended by the state’s Wage Board on Friday, January 30, 2015, tipped workers in New York state, including restaurant servers and hospitality workers, would have their minimum hourly wage increased to...more

New York Hospitality Industry Wage Board Recommends Increase in Tipped Employee Minimum Wage

On September 15, 2014, the New York State Commissioner of Labor assigned the three-member Hospitality Industry Wage Board (“Wage Board”) with the task of reviewing and making recommendations regarding what changes, if any,...more

The Diminishing Tip Credit: Another Reason it is becoming Harder to Comply with Wage & Hour Laws in New York

Executive Summary: On January 30, 2015, the New York State Department of Labor's ("NYSDOL") Wage Board (the "Wage Board") voted to recommend a fifty percent increase in the minimum hourly rate for tipped workers, from $5.00...more

Pinnache and Pizzazz or Milquetoast and Vanilla

Some people speaking with style. Some put you to sleep. Most law firm websites are the latter. Law firms are so afraid of offending someone that they fail to capture the hearts of anyone. We’ve tried to be the former, to let...more

Can Hotels Legally Block Wi-Fi Hot Spots? The FCC Says No, and Fines a Hotel $600,000 For Doing It.

In a public notice issued this week, the Federal Communications Commission (FCC) warned hotels, convention centers and other businesses that it is illegal to willfully block or interfere with their guests’ Wi-Fi hot spots...more

Client Alert: Hotel Service Charges Don't Always End Up in Employee's Tip Jar

In Audio Visual Services Group, Inc. v. Superior Court (Juan Solares), Los Angeles Superior Court Case No. B256266, Filed January 21, 2015, the Court of Appeal held that the Hotel Service Charge Reform Ordinance ("Ordinance")...more

FRANCHISOR 101: Accidental Franchises in Industries Not Typically Associated With Franchising

Almost everyone recognizes the nation's most prominent franchises: McDonald's, Domino's, Hilton or 7-Eleven, to name a few. And business people are becoming aware that arrangements that look like franchises, but are...more

Navigating the Cyber Liability Storm - Part II

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

Navigating the Cyber Liability Storm Part I

Franchisors are facing a precarious three-way intersection of increased accountability and regulation over consumer privacy, the growing volume and sophistication of cyber-attacks on consumer data, and the expanding...more

Are Taprooms on the Horizon in Georgia?

The State of Georgia is one of just four states left that adhere to dated laws prohibiting the sale of craft beer on-site. In Georgia, a craft brewery must sell its product to a distributor and that distributor must sell the...more

Ahwahnee, By Any Other Name

What’s in a name? Apparently $51 million. The National Park Service is currently looking for a new concessionaire to manage hotels, transportation, recreation activities, and other facilities and services in Yosemite...more

Some Multi-Unit Franchisees are Public Companies

While most of the private equity and public offering activity of franchise companies focuses on franchise brands and systems, every now and then a large, multi-unit franchisee will go public or seek private equity financing....more

More Tax Money for the City of Chicago in 2015: Broader Bases, Increased Rates and Lesser Credit

The City of Chicago’s (City’s) 2015 budget includes a number of changes to taxing ordinances found in titles 3 and 4 of the Chicago Municipal Code. The City of Chicago Department of Finance has notified taxpayers and tax...more

6th Circuit: Interruptions During Meal Period Do Not Automatically Render Time Compensable

Yesterday we told you about the California Court of Appeals' decision in which the court found that it was not unlawful for an employer to require its security guards to be "on call" during rest periods. The Sixth Circuit...more

AFL-CIO’s Industry Wide Agreement May Have Wide Reach in Hospitality Industry

Mid-way through 2012, the Hotel Association of New York City and the New York Hotel & Motel Trades Council, AFL-CIO (the “Union”), renewed a seven-year collective bargaining agreement known as the Industry Wide Agreement, or...more

CA Supreme Court: New Duties for Businesses Regarding Having Defibrillators on-site; and Whether Anti-Discrimination Statutes Also...

California Rule of Court 8.548 permits the Ninth Circuit to certify questions of California state law to the California Supreme Court. On average, this happens a handful of times per year. Over the past five years, the...more

The Merchant Financial Cyber Partnership Issues Cybersecurity Recommendations

The Merchant Financial Cyber Partnership (“the Partnership”) recently released eight recommendations aimed at enhancing the data security of the payments system across the merchant and financial industries. The Partnership...more

The shrinking terms of hotel management agreements - Better bargaining position for hotel owners on HMAs

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...more

Reminder: Florida Minimum Wage Increase Effective January 2015

Florida’s minimum wage will increase from $7.93 to $8.05 per hour effective January 1, 2015. Also effective January 1, minimum wage for tipped employees will increase from $4.91 to $5.03 per hour, plus tips (keeping the tip...more

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