Hospitality Industry

News & Analysis as of

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

Tip-Related Claims Will Continue to Be Served Up as the Lawsuit du Jour Against the Hospitality Industry in 2015

The hospitality industry is particularly fertile ground for a wide variety of wage and hour issues, which continue to plague management through steadily increasing federal and state department of labor investigations and...more

Private Equity Was Active in Franchising in 2014

In the last year, private equity continued to play an important role in franchising. Private equity offers a franchisor with a growing franchise system a promising pathway to rapid growth. An investment group can assist a...more

Oakland Employers Need to Prepare for Increases in Minimum Wage and Paid Sick Leave

The voters in Oakland recently passed Measure FF, which effective as of March 2, 2015, increases the minimum wage to $12.25, mandates up to 72 hours (equivalent to 9 days) of paid sick leave, and restricts hospitality...more

Art Basel Miami Beach Attracts World-Class Hotel Brands

Last week more than 75,000 art aficionados and celebrities from around the globe descended upon Miami for the 2014 edition of Art Basel Miami Beach. What began in 2002 as a winter outpost of the original Art Basel in Basel,...more

Understanding "Ban the Box" Laws

“Ban the Box” is a national civil-rights movement backed by advocates for job applicants with criminal convictions. Proponents of these laws believe that expanding employment opportunities for individuals with criminal...more

You Better Watch Out, You Better Not Cry... Wage and Hour Investigations on the Rise

A representative from the U.S. Department of Labor (DOL)'s Wage and Hour Division recently warned that the payroll practices of some of this state's most active industries (including the oil and gas services industry) may be...more

Summary Judgment Granted in “Known Condition” Premises Case

Federal District Court in Columbia Holds No Duty to Warn of Rainy Conditions - Retailers and hospitality-related entities doing business in South Carolina should be encouraged by a recent premises liability decision...more

FAQs on Compliance With the Federal Tip Credit

Many employers in the hospitality industry employ individuals who receive customer tips or gratuities in the ordinary course of their work day. These tips may serve as an offset against an employer’s minimum wage obligations...more

Court Dismisses Shareholder Derivative Action Targeting Directors and Officers for Data Breaches

A federal district court in New Jersey has dismissed with prejudice a shareholder derivative suit, Palkon v. Holmes, No. 14-CV-01234 (SRC) (D.N.J.), that tried to blame the directors and officers at hospitality company...more

Marriott signs FCC Consent Decree and agrees to pay $600,000 civil penalty for Wi-Fi blocking

Have you ever wondered why your cell phone or personal Wi-Fi hot spot does not seem to work in some hotels? As more business and leisure travelers equip themselves to stay in constant communication with their work...more

What Needs To Be Shared About the “Sharing Economy”

The sharing economy (sometimes also referred to as the peer-to-peer economy) is a socio-economic system built around the sharing of human and physical resources. The idea is nothing new - humans have engaged in the business...more

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