Government enforcements can sometimes lead to private sector lawsuits from a hospitality expert witness perspective. This is because it sets the tone that non compliance is one basis that an employer may have treated certain workers unfairly. Usually these lawsuits get settled out of court. However, the time and money in legal fees and related expenses can impact the future viability and profitability of a hotel and restaurant business. Currently, and as noticed by the American Hotel & Lodging Association, the DOL (U.S. Dept. of Labor) has begun targeting the hospitality sector. Here are some excerpts from that article and what you should be on the lookout for and do: “Armed with increases in funding and staffing, the federal organization has begun targeting the hotel industry for audits to weed out violations of overtime rules, minimum wage and classification of exempt and nonexempt positions.” “These are very difficult laws and regulations with which to comply. They’re complex and they’re evolving,” said Michael Gray, partner with law firm Jones Day. In the recent six months to a year, I’ve seen a more significant uptick in the DOL audits of the restaurants industry and only a slight uptick on the hotel side of hospitality industry,” Gray said, acknowledging it’s hard to make any definitive conclusions from his personal observations.” “Hospitality is a team-based industry. If the food in the restaurant is up and every server is busy, a manager will typically step in and serve the table. Similarly, cross training across various departments is seen as a way to increase efficiency among a staff. The lines between managers and non-managers, exempt and nonexempt, are often blurred as a result.” Read more to protect your hotel and restaurant from a hospitality expert witness standpoint. There is more on the subject at this AH&LA hotel advisory. Or, contact one a member of our hospitality consulting group if you are concerned about a potential lawsuit and need a referral to an attorney. Are you a hotel or restaurant owner or operator facing similar audits by the DOL? Please share your comments with this hospitality expert witness and our readers as to why the audit began and some of what you had to do to comply (to the extent you can release such information).
