2023 RECAP Hospitality
2023 Recap
Balancing Innovation and Compliance Employers in the hospitality industry have been through it all in recent years – from the devastation of the pandemic to ongoing labor shortages to an impending recession. These challenges and dramatic changes continued to shape policies in 2023 as businesses came up with creative ways to recruit, retain, and reward employees. Here’s a look at the top seven wage and hour mistakes hospitality employers make and how can you avoid them as you continue to fine-tune your policies and practices in 2024. New Tip Credit Rule is Here to Stay … For Now A federal court refused to block the DOL’s infamous 80/20 rule in July, which applies to employers that take the tip credit toward their minimum wage obligation under federal wage and hour law. Here’s a brief background on the rule and a 10-step action plan to ensure your wage and hour practices are up to date. New Obligations for Restaurants and Hotels in the Golden State California has long required food handlers in restaurants to obtain certification — and until now, training and testing has been the employee’s responsibility. A new law Governor Newsom approved in October, however, shifts this burden entirely to employers by requiring them to pay their workers for all costs associated with obtaining a food handler card. Additionally, at the local level in Irvine, hotel employers had to implement additional requirements beginning in May under the city’s new Hotel Worker Protection Ordinance – which includes stringent workload limitations for room attendants.
AI Focus Hospitality in Perfect Position to Benefit From AI
All industries have their early adopters, and hospitality is no exception. AI is being used to guide customer experiences, improve efficiency and profitability, and predict what guests are going to want next. In the year ahead, hotels, resorts, restaurants, cocktail bars, spas, cruise lines, and others in the industry will continue to leverage or experiment with AI, which will require a careful balancing act while showing care for your guests. Here are some of the challenges hospitality employers should consider before deploying an AI solution.
Alden Parker Regional Managing Partner Sacramento/San Francisco aparker@fisherphillips.com
Andria Ryan Partner Atlanta alureryan@fisherphillips.com
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