“New York City’s Safe Hotels Act Introduces Licensing and Safety Requirements for Hotels – SHRM”

**New York City Enacts Safe Hotels Act to Enhance Hotel Operations and Worker Protections**

On November 4, 2024, New York City Mayor Eric Adams signed the Safe Hotels Act into law, introducing several new regulations for hotel owners and operators across the city. The law, which takes effect on May 3, 2025, imposes licensing requirements, staffing mandates, safety measures, and cleanliness standards. Larger hotels face additional obligations, such as directly employing certain workers and providing panic buttons to employees.

### **Licensing Requirements**
Under the Safe Hotels Act, all hotels must obtain a license to operate. Operating without a validly displayed license will be prohibited. To secure a license, hotels must demonstrate compliance with the act’s provisions, including staffing, safety, cleanliness, and direct-employment requirements.

Unionized hotels can meet these requirements by showing that their collective bargaining agreements (CBAs) explicitly incorporate the act’s provisions. These hotels are exempt from proving compliance for 10 years or the duration of the CBA, whichever is longer, unless the agreement is modified to remove the act’s requirements. If such changes occur, the hotel must notify the New York City Department of Consumer and Worker Protection (DCWP).

Hotels applying for license renewal may continue operating while their applications are under review, even if their current license expires during the process. Additionally, license revocation requires 30 days’ notice and an opportunity to address any issues.

### **Direct Employment of Core Employees**
Hotels with 100 or more guest rooms must directly employ “core employees” as a condition of obtaining a license. Core employees include workers in housekeeping, front desk, and front service roles. This provision prohibits the use of contractors, subcontractors, or staffing agencies for these positions.

However, there are exceptions:
1. Pre-existing staffing contracts signed before the law’s effective date may remain valid if they include a termination date.
2. Hotels can hire a single operator to manage all operations involving core employees, provided the operator directly employs those workers.

The act does not allow temporary or flexible staffing arrangements for core roles, leaving uncertainty about how strictly the DCWP will enforce this provision.

### **Service and Staffing Standards**
The Safe Hotels Act introduces several measures to enhance safety, prevent human trafficking, and maintain cleanliness:
– **Human Trafficking Training**: All core employees must undergo training to recognize signs of human trafficking. New hires must complete this training within 60 days of employment.
– **Front Desk Staffing**: Hotels must ensure continuous front desk coverage. During overnight hours, a security guard may substitute for front desk staff, provided they can assist guests and have completed human trafficking training.
– **Security Requirements**: Hotels with over 400 guest rooms must have at least one security guard on duty at all times.
– **Cleanliness Standards**: Hotels must maintain high cleanliness standards, including:
– Providing fresh towels, sheets, and pillowcases for new guests.
– Replacing linens upon guest request.
– Cleaning occupied rooms and removing trash daily unless a guest opts out. Hotels cannot charge fees or offer discounts to encourage guests to forgo daily cleaning.
– **Short-Duration Stays**: Bookings of less than four hours are banned, except for hotels within one mile of LaGuardia or JFK airports.

### **Panic Buttons for Employee Safety**
Hotels must provide panic buttons to core employees who enter occupied guest rooms. These devices, provided at no cost to employees, must enable workers to alert security or another designated onsite individual in case of danger. The panic button must also transmit the employee’s location.

This requirement aligns with a broader legislative trend, as New York State recently passed a law mandating panic buttons for large retail employers starting in 2027.

### **Anti-Retaliation Protections**
The act includes strong anti-retaliation measures to protect employees who report violations or unsafe practices. Workers are shielded from retaliation for:
1. Reporting or threatening to report activities they believe violate the act or endanger public health or safety.
2. Providing information or testimony during investigations or hearings.
3. Refusing to participate in activities they reasonably believe pose unusually dangerous conditions.

Employees can file civil lawsuits seeking compensation, injunctive relief, and attorney fees. Such claims must be filed within six months of discovering the alleged violation, with notice provided to the DCWP (though failure to notify does not invalidate the claim).

### **Implementation Timeline**
The Safe Hotels Act will take effect on May 3, 2025. Existing agreements for indirect employment of core employees are permitted if they include a termination date. However, any new agreements entered into after May 3, 2025, must comply with the act’s provisions by October 30, 2025. Effective immediately, hotels must ensure continuous front desk coverage.

### **Industry Concerns and Opposition**
The Safe Hotels Act has faced criticism from some hotel owners and industry groups, who argue that its provisions impose significant burdens without directly enhancing safety. Critics suggest that certain requirements, such as the direct-employment mandate, may be aimed at encouraging unionization rather than improving safety.

The exemption for small hotels has also raised questions about the act’s intent. For instance, it is unclear why direct employment of core employees is deemed essential for larger hotels but not for smaller ones.

It remains to be seen whether the Safe Hotels Act will face legal challenges in the future.

*Authors: Theo E.M. Gould, Michael Paglialonga, and Vinay Patel, attorneys with Littler in New York City. Reposted with permission.*

Source: shrm.org

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