Potential Changes to NYC Hotel Policies: What It Means For Workers

Welcome mat at entrance with glass doors.

The New York City Council’s latest legislative proposal for hotel licensing introduces significant changes, with exceptions carefully negotiated to address industry concerns.

At a Glance

  • Small hotels (100 rooms or less) exempt from direct hiring requirements.
  • Bill aims to enhance public safety, health, and worker protections.
  • Provisions negotiated by hotel industry groups and City Council leaders.
  • Expected City Council approval with super majority on October 23.

Legislation and Exemptions Explained

The New York City Council has proposed a new bill imposing stricter licensing requirements on hotels, focusing on direct employment over subcontracting for core functions. However, hotels with 100 or fewer rooms, generally family-run, enjoy exemptions. This compromise, achieved through negotiations with the Hotel Trades Council union and led by Councilwoman Julie Menin, strikes a balance between improved public safety and operational flexibility. The exemption aims to support smaller enterprises without undermining the legislation’s primary objectives, addressing both industry and worker concerns.

“We were able to negotiate a version of the final bill that now addresses the concerns of both our large and small hotels—and will allow the hotel industry and its workers to thrive in New York City for years to come,” said Vijay Dandani, president and CEO of the Hotel Association of New York City. This sentiment highlights the compromise that supports diverse business models while maintaining essential worker protection standards. The legislation’s main provisions remain, promoting a safer, healthier environment for workers and guests alike.

Impacts and Industry Response

Despite achieving a compromise, the bill’s implementation is not without opposition. The American Hotel and Lodging Association opposes the bill, arguing that it might negatively impact hotel investments and tourism by raising operational costs. The revised proposal responds to earlier feedback from the hotel sector, allowing subcontracting for small hotels to accommodate seasonal employment and operational demands while keeping critical safety and quality measures intact across the board.

“This latest, and apparently final, version of the bill makes it vividly clear that this was never truly about health and safety,” Carey said Wednesday. “If the City Council is willing to permit subcontractors in hotels with 100 rooms or less, there is no reason why this legitimate business practice should be banned for hotels with 100 or more rooms.” The exemption illustrates the concerns among larger establishments regarding competitive fairness and operational efficiency within the industry.

Potential Challenges for the Hospitality Industry

The proposed legislation poses challenges for roughly 700 hotels in New York City, potentially altering employment practices, room rates, and hotel operations. Still, it’s anticipated to pass with a super majority vote later in October. Despite resistance, there exists a strong support network for the bill from local unions and City Council members, with 34 out of 51 co-sponsoring the act. The passage will reinforce the emphasis on hotel safety, standardizing basic health and quality measures for workers and guests across the city’s diverse hotel offerings.

“The goal of this legislation has always been to set a sensible framework that would codify and improve basic health, safety, and quality standards for workers and guests at hotels citywide,” said Rich Maroko, the president of HTC. With this latest modification negotiated between the union, the Hotel Association of NYC and City Council leadership, the objective appears achievable and reflects a collective effort to safeguard public and worker interests.

Sources:

  1. https://nypost.com/2024/10/16/us-news/small-nyc-hotels-exempt-from-hiring-rules-in-proposed-law/
  2. https://subscriber.politicopro.com/article/2024/10/controversial-hotel-licensing-bill-heads-for-a-vote-after-negotiations-00183935
  3. https://www.crainsnewyork.com/politics-policy/city-council-softens-hotel-bill-again-after-small-owners-protested
  4. https://skift.com/2024/09/12/new-york-city-hotels-protest-bill-to-mandate-licensing-deter-subcontracting/
  5. https://www.asianhospitality.com/new-group-forms-to-protest-nyc-safe-hotels-act/
  6. https://www.wsj.com/real-estate/hotel-owners-and-union-clash-over-proposal-to-regulate-nonunion-hotels-4cc5601c
  7. https://www.hoteldive.com/news/hotel-association-nyc-revised-safe-hotels-act/728922/
  8. https://www.hospitalityinvestor.com/americas/proposed-hotel-bill-creates-massive-uncertainty-nyc
  9. https://legistar.council.nyc.gov/LegislationDetail.aspx?ID=6788498&GUID=3B70EB01-67AF-4423-80A8-6844EF2C142D&Options=&Search=
  10. https://lodgingmagazine.com/ahla-issues-statement-about-nyc-council-bill/