On November 4, 2024, New York City enacted the "Safe Hotels Act" (Int. 0991-2024). This law mandates that all new and existing hotels in New York City obtain a license to operate their businesses.
The Safe Hotels Act requires new and existing hotels to:
1. Obtain an operating license every two years
The Department of Consumer and Worker Protection (DCWP) is responsible for issuing and renewing two-year operating licenses and inspecting hotels to ensure compliance with health and safety regulations, and has the authority to revoke licenses and impose civil penalties.
2. Provide continuous front desk coverage 24 hours a day
Each hotel must have at least one employee to assist and confirm the identity of guests checking in, providing 24-hour coverage at the front desk. During overnight hours, a security guard, instead of an employee, may be scheduled to assist guests if they have undergone training to recognize human trafficking. However, for hotels with more than 400 guest rooms, at least one security guard must always be scheduled for 24-hour continuous coverage.
3. Direct employment of front desk, front service, and housekeeping employees
Owners of hotels with more than 100 guest rooms must directly employ all core employees—i.e., front desk and housekeeping roles. However, hotel owners are not required to directly employ core employees if they use a single hotel operator that is responsible for all hotel operations, including hiring core employees. Hotels must also ensure that both existing and new core employees receive training in recognizing human trafficking at no cost to them.
This new law adds to other recent increases in hotel industry regulation in New York City. For example, in December 2021, the NYC Council adopted the Citywide Hotels Text Amendment, requiring new hotels and expansions greater than 20 percent to obtain a special permit from the New York City Planning Commission (CPC) pursuant to the City's Uniform Land Use Review Procedure (ULURP) (see October 21, 2021, client alert: "Obstacles Loom for NYC Hotel Development").
For further information on these developments, please get in touch with Sue Golden or Hilary Atzrott Hamburg.