Duff on Hospitality Law

It is no secret that wage and hour class actions are among the “hot topic” law suits that are on the increase. Like too many people, when I hear “class action” my heart starts to race, beads of sweat break out on my forehead and I start to feel sick to my stomach…and I don’t even own the business that is named in the suit. I just know the wage and hour cases are time intensive and expensive to defend. Wage and hour class actions often deal with the tried and true wage claims, misclassification of exempt employees as well as the overtime claims that go hand in hand with the misclassification. However, occasionally one comes along that makes you stop and think.

On Monday March 3, 2014, a Multnomah County Circuit judge agreed with the Multnomah County Elections Director and brought a new hotel at the Oregon Convention Center one step closer to fruition. A Convention Center Hotel has long been desired by a variety of tourism and economic development interests who argue that such hotel will allow Portland to host larger events at the Convention Center. As long as those supporters have been around, so too have opponents of such a hotel, who argue that the economic benefits of such a hotel are overstated and may also harm their economic interests and should not qualify for public subsidies. In 2013, Metro and other local jurisdictions seemed to be coalescing around a plan that would bring the hotel to the Convention Center, but one aspect of the plan ran into a snag and ended up in court.

On February 5, 2014 the U.S. Environmental Protection Agency launched the “WaterSense H2Otel” challenge, a program encouraging hotels to implement best management practices for reducing their water usage. As part of “WaterSense H2Otel,” the EPA is providing technical assistance using webinars and other forms of outreach including case studies on the “lessons learned” from other hotels’ efforts to reduce water usage. The challenge is designed for any individual hotel with five or more rooms, as well as hotel management groups and chains. EPA explains that WaterSense H2Otel is part of the agency’s broader (multi-sector) “WaterSense” program to promote water-efficient products, services and practices in an effort to address ever increasing demand for water in the U.S.

In September, 2013, Governor Jerry Brown of California signed into law Assembly Bill No. 370, which amends the California Online Privacy Protection Act (CalOPPA) to require that website and mobile app operators disclose whether they honor web browser “Do Not Track” signals. AB 370 took effect on January 1, 2014.

Today's blog is a litigation update on the devastating North Carolina hotel carbon monoxide leak. Please make sure that your business and hotel guests are protected. - Greg

It seems fitting that my first post of 2014 would come from the year's first major industry conference - the Americas Lodging Investment Summit (ALIS) held each January in Los Angeles. As expected, this year's Summit set near record attendance (nearly 2,600 registered attendees) and its attendees were brimming with confidence.

I’m pleased to introduce another guest author from local accounting firm Clark Nuber. Julie Eisenhauer is an audit and accounting principal specializing in the hospitality industry. We're grateful that Julie has offered to share her experience and knowledge with our readers. Welcome, Julie, and thank you for today’s post on this important revenue ruling. – Greg

In a letter sent to major hotel chains, FCC Commissioner Ajit Pai urged hotels to program their telephones to be able to dial 911 without first dialing 9. The motivation behind this initiative is the death of Kari Hunt Dunn, who was stabbed to death at the Baymont Inn in Marshall, Texas this past December, while her daughter unsuccessfully attempted to dial 911 for help. The Baymont Inn’s phone system required all guests to dial 9 before dialing 911. As a result, the daughter was unable to reach emergency services.

By now, most hoteliers and restaurateurs know that all employers are required to prepare and maintain the Form I-9 for all of their employees. But did you realize that those forms can be a basis for financial liability if they were improperly prepared? This post will identify your risks and strategies to reduce a fine if you are ever audited by the government.

Some employees in SeaTac, Washington will ring in the new year with a minimum wage increase to $15 dollars an hour, and other benefits including paid sick and safe leave. The new law takes effect on January 1, 2014. Following a judge’s recent ruling, the changes will not apply to employees within the Seattle-Tacoma International Airport. If, however, you’re in the hospitality and/or transportation industry operating outside of the airport, and satisfy certain size requirements (for instance, hotels are generally covered if they include 100 or more guest rooms AND are staffed by 30 or more workers), you need to prepare for changes under the new law.

More information to come. You can contact Greg Duff with any questions.