Limits effects of law on changes in control of hotels and disruptions of hotel services to hotels with more than 350 rooms.
The bill maintains significant protections for employees, requiring that any changes in control must still adhere to established guidelines on employee notifications and retention. It mandates that former hotel employers provide a comprehensive list of employees to successor employers at least 30 days prior to the change, ensuring that workers are informed of their rights during transitions. Furthermore, it stipulates that guests must be notified of any service disruptions within 24 hours, preserving rights that allow them to cancel reservations without penalties if the service quality is substantially affected.
Bill S2644, introduced in the New Jersey legislature, seeks to amend existing laws regarding changes in control of hotels and service disruptions by limiting its provisions specifically to hotels with more than 350 rooms. This legislation is taking a more granular approach by tailoring the application of such requirements based on hotel size, potentially impacting numerous large hotels across the state. Under the current law, successor hotel employers are mandated to offer employment to eligible hotel service employees without any reduction in wages or benefits for a retention period of at least 90 working days during a change in control.
While the bill consolidates existing protections, the restriction of its provisions to larger hotels has sparked debate among stakeholders. Proponents argue that this focus helps prevent undue regulatory burden on smaller hotels while still protecting employees and guests in larger establishments. However, critics express concerns that it might diminish employee protections for smaller hotels and lead to disparities in labor rights across different hotel sizes. The discussion highlights the ongoing balance between supporting the hospitality industry's economic viability and ensuring equitable treatment for hotel workers.