Monday, June 25, 2012


Hospitality Management Laws

Introduction

All industries and businesses is guided and under strict compliance of government laws and policies. These laws regulate and protect employers and employees as well safeguarding the company-customer relationship. Hospitality Industry is one of those fields that have sensitive laws and policies. Presently, these laws are often a subject of issues, matters and debates.
To intensify further this hospitality management laws, this article tackle the primary laws pertaining to hospitality work force risk insurance, food safety and guest protection. This writing document will revolve in presenting the laws for better understanding and for future applications.

Workforce Risk Insurance

Government hospitality law regulators are now more aggressive in enforcing labor laws pertaining to wages and medical leave. Considering the number of legal issues arising from incompliance of these laws, present hospitality company should be aware and put their selves in the direction of these laws. Some good examples of companies that have been hit hard by these mandates are Park AvenueWaldorf-Astoria, Los Angeles Airport Hilton and Chicago 

Blackstone Hotel.

The involvement of Department of Labor specifically the Wage and Hour Division and other related government units made these hospitality issues more deeply concerning. Some of the federal employment acts and laws that give ways to for these controversies to arise are the Fair Labor Standard Act (FLSA), Family Medical Leave Act (FMLA), Employment Free Choice Acts (EFCA) and Laws governing H-2B and seasonal employees.
The Department of Labor (DOL) Wages and Hour Division has released their statement stating that hospitality industry employers should look and assess their current condition to harmonize their position with the proper federal laws especially for wages, salary exemptions and overtime. The department call for action serves as wakeup call for those hospitality institutions disconcerting their selves about these highly misunderstood acts and laws.

As the issue grows more legally contentious, law regulators unveil that many hotels, resorts and motels are not inclined with FSLA overtime mandates, FMLA leaves, and ECFA mandates. For companies that don’t want the DOL knocking their office due to miscalculation, invalid termination, and incompliance, they have to make sure that they are well aligned to what is proper and fair.  

As a safety measures for these concerning legalities, some recommendation is formed to serve as guides, assessment factors and directives. The recommendations are listed below:

1. FLSA Blended-rate overtime should be automatically calculated.    
2. Defining and justifying employees as nonexempt or exempt for FLSA overtime.
3. To easily point out FMLA leave eligibility, tracking 12-month rolling period worked hours should be done.
4. Employees with need for FMLA hours HR approval should be flagged.
5. Managing intermittent leave hours for multiple FMLA claims.

Proper tracking of employee’s hours, status of employee and wages, regardless if they are contract workers or directly hires, is critical in a hospitality industry. These are matters that trigger FLSA sights.

A good example of a complying hospitality company is located in several Midwestern states. The attendance and time system they observed calculates FMLA-complaint overtime pay, tracks FMLA usage and eligibility, and complying with the union bargaining agreements.
Food Safety

Food safety is another hospitality law that often gets the highlight of controversy. In Australia, Their latest hospitality food safety requirement is mandated by New South Wales Food Authority (NSW Food Authority). NSW states that Businesses serving, selling or offering food should now have an in-house notified and trained Food Safety officer or Supervisor. Those who will be caught not obeying such directives will have to face fines and penalties. They should follow the directions as soon as possible as it is outlined in the FSS training deadline alert.
he requirement for food safety personnel is presented as:

1. A person that have obtained an FSS certificate. The certificate should be not more than five years old.
2. A person which is not connected or an FSS to other mobile food catering business or food premises.
3. A person given the authority to supervise other employees and have the capability to oversee safe food handling.
Upon hiring a certified food safety supervisor, the company should notify the FSS. The notification can be done through FSS website or though submitted local council forms.
The general law for food safety instructs the industries related to food supply to be responsible for producing safe food. Government agencies in the other hand are responsible for conducting inspections, setting standard for food safety, ensuring that these agreed standards are complied, and maintaining a strong enforcement program which deals with companies that do not comply with the given standards.

Guest Protection

Everyone has heard and some have experienced complaints concerning guest protection and safety. This concern frequently occurred in the hospitality industry. The fact is that many hospitality establishments are still not fully equipped with knowledge on guest or customers protection.

Management is responsible for taking reasonable care for customers or guest when they enter or stay in their establishment premises. The obligation also includes taking care of guest belongings and possessions during their stay in the establishment. The management will be expected to use good judgment in carrying out the procedures necessary to show the customers that they care in their well-being as well defined their dedication to protect their property.

The basic law of guest safety is based on early common law theories of contract and tort. The federal government has limited involvement in the private relationships between hotels and guests. Any state has the freedom to enact their own statutes regarding hospitality company’s duties and rights as long as the federal rights is not abridges. Many states have followed this process. Limitations or Waivers to liability are also generally allowed if it is not deemed "unconscionable" in fact or law.