The New York City Council passed on Oct. 23, 2024 the Safe Hotels Act, which seeks to establish a licensing program for New York City hotels. Mayor Eric Adams is expected to sign this legislation into law. As discussed in further detail below, the act will require most new and existing hotels to: (1) obtain a license to operate in New York City, (2) maintain continuous front desk coverage and/or security and (3) directly employ all “core employees.” The failure to comply with any provision of the act may result in monetary sanctions.
The Safe Hotels Act
Licenses
Under the act, New York City hotels cannot operate without a valid license. Hotel owners and their managing agents (collectively referred to in this alert as hotel operators) must file an application for a license and, if approved, the license will be valid for two years. Once a license is issued, it must be displayed in a publicly visible area. The act defines hotel operators as “any person who owns, leases, or manages a hotel and is in control of the day-to-day operations of such hotel, including employment of natural persons who work at such hotel[.]”
It is unknown how long it may take the city to render decisions on applications. However, with respect to license renewals, a hotel operator will not be in violation of the act if it has submitted its application forms, and its license expires before the city renders a determination on the renewal. Thus, a hotel does not need to cease operations while its application to renew is pending.
Front Desk Staffing and Security Coverage
The act requires all New York City hotels to provide continuous around-the-clock (24 hours a day) front desk staffing; between the hours of 12:00 a.m. and 2:00 a.m., hotels may utilize a security guard instead of a typical front desk employee. The act provides that staff must be available to confirm the identity of guests checking in to the hotel, but it does not affirmatively require such confirmation.
In addition, all hotels with more than 400 guest rooms must schedule at least one security guard to provide continuous coverage of the hotel’s premises at all times.
Direct Employment: Limits on Use of Vendors for Staffing
Aside from hotels that have fewer than 100 guest rooms, all hotel operators will be required to directly employ all of their “core employees” which are defined as “any employee whose job classification is related to housekeeping, front desk, or front service at a hotel.” This includes room attendants, house persons, and bell or door staff.
This means that all core employees must either be employees of the hotel owner or the hotel’s managing agent (if applicable). The act expressly states that applicable hotels may not utilize staffing agencies, contractors or subcontractors for their core employee positions.
In addition, hotel operators will be required to provide human trafficking recognition training to all core employees; new employees should undergo the training within 60 days of employment.
Notably, the act expressly excludes certain categories of employees from its definition of core employee. The exclusion applies to food and beverage staff (including but not limited to cooks, stewards, bartenders, servers, bussers, barbacks and room service attendants) as well as security staff.
Through the efforts of the New York City Hospitality Alliance, the city council amended the act to specially exclude food and beverage employees from the definition of core employees. As originally drafted, the act required all employees who worked at a hotel to be employed by the hotel owner or the hotel’s managing agent. However, after the Alliance discussed the issue further with the act’s legislative sponsors, the city council amended the act to exclude food and beverage employees from its provisions.
Practical Implications and Next Steps
While the act has not yet gone into effect, it has been sent to Adams and it is expected to be signed into law soon; it will become effective 180 days after such signing. Accordingly, hotel operators should begin preparing for the act’s financial and operational implications as soon as possible.
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