THE OFFICIAL MAGAZINE OF THE CALIFORNIA HOTEL & LODGING ASSOCIATION CALIFORNIA MAY/JUNE 2023 LODGING NEWS California’s Busy Legislative Season
2 Message from the President & CEO 4 CHLA Mid-Session Update 6 Wage-Hour Compliance for California Hospitality Employers 8 Ask the Expert: Seasonal Staffing Discussion 10 Build a Stable Workplace, Celebrate Your Employees 12 PAGA—A Noble Idea in Need of Reform 14 J avier Cano: CHLA’s Government + Legal Relations Committee Chair 16 Legislative Action Summit 18 Reception 20 CHLA Marketplace 26 Upcoming Events 27 CHLA Partners OUR MISSION CHLA is the indispensable resource for communicating and protecting the rights and interests of the California lodging industry, for providing educational training and cost-saving programs for all segments of the industry, and for supporting strategic alliances to promote the value of California tourism and travel. 16 8 4 LODGING NEWS TABLE OF CONTENTS ON THE COVER This photo was taken at this year’s Legislative Action Summit in Sacramento.
2 CALIFORNIA LODGING NEWS 414 29th Street Sacramento, CA 95816 916.444.5780 www.calodging.com EXECUTIVE COMMITTEE CHAIR Hee-Won Lim-Grosvenor Pacific Palms Hotel VICE CHAIR Dhruv Patel Ridgemont Hospitality IMMEDIATE PAST CHAIR Tom Patton, CHA Ramada by Wyndham Santa Barbara SECRETARY/TREASURER Cormac O’Modhrain Sunstone Hotel Investors GOVERNMENT & LEGAL RELATIONS CHAIR Javier Cano JW Marriott at L.A. LIVE AUDIT & INVESTMENT COMMITTEE CHAIR Laurenne Douglas Pacific Plaza Hotels, Inc. WHILE THE PANDEMIC IS “OFFICIALLY” OVER, we in the hospitality industry know that we are far from being over the economic effects of two years of drastically reduced tourism and cancelled business meetings and conventions. We are still trying to make up for that lost revenue while also trying to satisfy hiring needs despite increased costs driven by inflation. At the same time, our industry faces legal and regulatory challenges that would only make the situation worse and full recovery more difficult. Two come to mind right away. One, covered at length in this issue, is the continued onslaught of nuisance lawsuits under the ADA. These are blatant attempts by a handful of law firms to extract settlement cash from properties despite lacking legitimate claims, and under threat of extensive and costly litigation. CHLA is sponsoring legislation in Sacramento that would eliminate these suits, which are damaging to us and tarnish the reputation of genuine victims of ADA discrimination. Another is a proposed ordinance in Los Angeles that would significantly raise the minimum wage in the hospitality industry to $30 an hour by 2028—more than the city pays teachers or most other city workers. California hotels already pay competitive wages, offer strong benefits and are committed to doing what’s right for our employees. Yet, the timing of this proposal on top of other recent costly ordinances in LA demonstrates that some city leaders don’t understand that less than a year removed from mandatory pandemic shutdowns, businesses are not fully recovered. These are battles that are essential to the long-term health of our industry. And the best chance we have to win these battles is for our members to be proactive, rather than waiting for these issues to be shaped by special interest groups. CHLA, as an association, works hard on these issues. But, our real strength lies in our individual members, whose properties directly benefit local communities, pay local taxes, and employ local residents. Those are key reasons for local elected officials to pay attention to the needs of our industry—as long as they stay informed. That’s why it is vital for our members to be engaged at a local level and build key relationships with city councils, mayors, and other officials. As Javier Cano, chair of CHLA’s Government + Legal Relations Committee, notes later in this issue, engaging with the elected officials and other decision makers should be a regular part of every general manager’s job. We need to establish a relationship and a level of trust before a serious issue arises, so that your concerns and the industry’s position are considered before a law or regulation is proposed. It’s far more difficult to change a proposal when its being debated than it is to shape the proposal in the first place. CHLA’s relationships in Sacramento and in cities across California as an association are important in these battles. But there’s no substitute for local owners talking to local officials and letting them know what they can do to help us, so that we can be successful and continue to contribute to the local economy and tax base. Over the coming year, CHLA is endeavoring to ensure that you, as hoteliers, will have the opportunity to build your own relationships, for the good of your business and the industry across our state. MESSAGE FROM THE PRESIDENT & CEO Lynn Mohrfeld CHLA President & CEO Lodging News—May/June 2023 ADVERTISING & DESIGN LLM Publications 503.445.2220 | 800.647.1511 www.llmpubs.com Design & Layout Sales Representative Katie Jo Stewart Grandt Mansfield [email protected] Copyright © 2023. All Rights Reserved 2023 BOARD OF DIRECTORS Kristi Allen Ensemble Real Estate Solutions & Investments Laura Lee Blake AAHOA Justin Boutwell Pebblebrook Hotel Trust Javier Cano JW Marriott at L.A. LIVE David Craig Pebblebrook Hotels Vipul Dayal Days Inn San Francisco Airport West Laurenne Douglas Pacific Plaza Hotels, Inc. Troy Flanagan AHLA Ross Gimpel Encore Jon Handlery, CHA Handlery Union Square Hotel Nic Hockman Disney’s Grand Californian Matt Humphreys Hyatt Regency San Francisco Daniel Kuperschmid Manchester Grand Hyatt San Diego Mark LeBlanc Franck Legrand Inn at the Opera Michelle Millar University of San Francisco Michael Pace InterContinental Mark Hopkins Hotel Bijal Patel, CHA Coast Redwood Hospitality Bimal Patel, CHA Hotel Zico Perry Patel Radiate Hospitality Pragna Patel-Mueller Samata Management Joe Piantedosi Park Hotels & Resorts John Spear Hotel Drisco Jeffrey Thurrell Fisher Phillips Wes Tyler, CHA Chancellor Hotel on Union Square Mike Tweeten Ace Parking Management Bobby Walia Marriott International Corporation
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4 CALIFORNIA LODGING NEWS www.calodging.com WITH THE HEIGHT OF COVID-19 in the rear view mirror and a massive number of new legislators seeking to make their mark, it has been a busy year in Sacramento and across the state. The following are some of the biggest issues CHLA is tracking and actively influencing. Fee Transparency Consumers don’t like surprise charges, and neither do the President, State Attorney General, or a handful of legislators who are all advocating for hotel fee disclosure reforms. During the President’s state of the union address earlier this year, resort fees were specifically mentioned, and efforts from Attorney Generals across the nation are making headlines. In California, three similar measures, including one backed by Attorney General Rob Bonta, are all making their way through the legislative process. While CHLA is a strong advocate for transparency, our industry should also be protected from language which would put our hotels at a competitive disadvantage relative to other domestic or international lodging options. With this in mind, CHLA has engaged with a coalition of stakeholders to lobby each of these measures to create a functional and fair disclosure policy. Resort Regulations California’s hotels are overwhelmingly in favor of environmental sustainability and responsible resource management practices. However, one measure sought to take current requirements to the extreme and threatened to create confusing, expensive, and unnecessary requirements. For example, one element of the measure sought to take away oversight and approval of pesticide usage at resorts from the California Department of Pesticide Regulations and instead, grant it to the California Coastal Commission. The other provisions followed similar logic. Fortunately, CHLA was able to generate a large grassroots opposition campaign to stop this measure in its tracks. 24-Hour Cancellations If airlines can do it, then so can hotels. At least, that is the idea behind a bill which would require hotels to offer free 24-hour cancellation policies if a reservation is placed more than 24-hours in advance of the date of stay. While CHLA is in favor of policies which favor consumers, this bill would potentially be a disadvantage to them because hotel rates are often discounted for non-refundable rooms, meaning that consumers win out under the current model. As CHLA is explaining to legislators, if this measure passes, that discount becomes much more difficult to maintain, and consumers stand to lose out. Recall and Retention The proponents of the original hotel recall and retention are at it again, only this time, they want to make it permanent. One bill is simple—it would remove the “sunset” provision (language which permits a bill to expire) and would render all employees terminated as the result of large layoff events subject to recall and retention. However, a second measure would apply similar recall and retention requirements to all employers with 100 or more franchise locations, and would require the employers to offer employment to the employees at any nearby establishment in the event of a closure or layoff. CHLA maintains that in a market where employers are struggling to fully staff hotels, there should be fewer barriers to employment, not more. CHLA Mid-Session Update
ADA Reform This is proving to be a tumultuous year for reform of California laws surrounding accessibility standards. At the start of the year, CHLA announced our legislation, authored by Asm. Stephanie Nguyen, which is designed to tackle forum shopping, abuse of California accessibility laws by vexatious litigants, and more. However, CHLA chose to hold the legislation last month in response to a rapidly shifting political environment and to preserve the effective language of the measure. By the same token, CHLA is shifting to support other ADA reform legislation which would establish rights to cure alleged violations in both physical and website-based construction. Similar measures have been introduced in the past, but, failed passage for various reasons. This is a tough issue, and one which CHLA needs to make sure we get right. Conclusion This list is not exhaustive (CHLA is tracking over 100 bills at the time of writing, while many of the 2,600 total bills introduced are also being amended and added to CHLA’s tracking/advocacy lists). It is designed to highlight some of the hotel-specific issues moving at the state level today. Over the coming months, bills will die, be amended, and more. CHLA will continue to advocate for your interests and appreciates your continued support. www.calodging.com 5
6 CALIFORNIA LODGING NEWS www.calodging.com Wage-Hour Compliance for California Hospitality Employers By Jennifer Shaw, Esq. and Melissa Whitehead, Esq. HOSPITALITY EMPLOYERS IN CALIFORNIA face several wagehour compliance challenges. Not only does the California Division of Labor Standards Enforcement (“DLSE”) actively monitor employers, plaintiffs’ counsel frequently take advantage of the California Private Attorneys General Act, which creates a substantial incentive to pursue wage-hour claims. So, what’s a hospitality employer to do? Successful compliance programs require a detailed understanding of California’s wagehour rules. Those rules are located primarily in the California Labor Code and the DLSE’s enforcement guidance, available at www.dir.ca.gov. Below are the most common wage-hour claims brought against California hospitality employers. Minimum Wage Non-exempt employees in California must be paid at least minimum wage for every hour worked. The current state minimum wage is $15.50 per hour. However, many localities, such as San Francisco, impose a higher hourly rate. Generally, only high-level managers who do not perform “manual” work may properly be classified as exempt. Rest and Meal Periods California’s rest and meal period rules, which are unyielding and subject to significant penalties for non-compliance, pose unique challenges to hospitality employers. Non-exempt employees who work more than five hours per day must be provided an unpaid and duty-free meal period of not less than 30 minutes. The meal period must begin before the end of the fifth hour of work, but there is nothing in the law precluding an “early” meal break, such as a “chef’s dinner” before the dinner crowd arrives. A second meal period is due when an employee works more than 10 hours, and must be taken before the end of the tenth hour of the shift. Employees must take a paid and duty-free 10-minute rest period for each four-hour shift (or major fraction thereof, which is defined as two hours). Employees who are not provided compliant meal and/or rest periods must be paid one hour of pay for each meal/rest violation at their regular rate of pay, up to a maximum of two hours per day. This “premium pay” is required when an employee is prevented from taking a compliant meal or rest period, but not when an employee unilaterally decides not to take their meal or rest period. So, premium pay is owed, for example, when the restaurant is short staffed and an employee has no time to take a break, or when a manager does not permit an employee to leave the premises during a break. In certain circumstances, employees may “waive” required meal periods. An employee who works more than five hours in a shift but fewer than six hours may choose not to take a meal period. Similarly, a second meal period may be waived if an employee works more than 10 hours but fewer than 12, and they did not waive their first meal period. There are no waivers for rest periods. Tips In California, any gratuity left by a guest, customer, or patron is the sole property of the employee for whom the tip was left. However, employees may participate in a tip pool if “management” does not share in the pool. There are no written rules regarding how to distribute tip pools. However, the distributions must be fair. For example, front of the house employees likely should be entitled to a larger portion of the pool because they spend more time directly interacting with guests, in comparison to back of house employees. Tip amounts are not included in overtime calculations, and employers must keep accurate records of all tips and provide
www.calodging.com May/June 2023 7 employees with tip reports on request. California employers may not make wage deductions from gratuities, or use gratuities as credits against an employee’s wages. By contrast, service charges may be treated as the property of the employer, unless a local jurisdiction, such as Santa Monica, requires otherwise. Generally, if a business charges a service fee for a large reservation, that amount does not qualify as a gratuity. Split Shifts In the hospitality industry, non-exempt employees frequently are scheduled for multiple shifts in the same day. Doing so allows employers to ensure coverage for busy times without over-staffing. However, California imposes a number of restrictions on these “split shifts.” A split shift is defined as two employerrequired shifts or work periods on the same workday with more than a meal period between them. When an employee works a split shift, they may be entitled to a splitshift premium for the workday. Split-shift premiums are calculated as one hour’s pay at the minimum wage in addition to the minimum wage for that workday. So, for example, employers may schedule their most experienced workers for the lunch rush from 11:00 a.m. to 1:00 p.m., and then bring them back for dinner shift from 6:00 p.m. to closing, so long as those workers are paid at least minimum wage for all hours worked plus one additional hour at minimum wage. Reporting Time Pay When a non-exempt employee is scheduled to work but is furnished with less than one-half of their scheduled shift, they are entitled to reporting time pay for at least half the hours they were scheduled to work. The pay must be a minimum of two and a maximum of four hours at the employee’s base rate of pay. This often occurs on days when business is slow, so employers send some of their staff home early. For example, if an employee was scheduled to work eight hours, but was sent home after two hours, then that employee is entitled to six hours of pay—four hours of reporting time pay and two hours worked. Mileage California Labor Code section 2802 requires employers to reimburse employees for all reasonable and necessary expenses they incur as part of their work duties. In the hospitality industry, employees may be entitled to mileage related to making deliveries, picking up supplies, and similar activities. Employers who reimburse mileage at the current IRS-required rate are entitled to a presumption that employees are not entitled to further payment for gas and wear-and-tear on their personal vehicles. Overtime Non-exempt employees in California may not work more than eight hours in a workday or more than 40 hours in a workweek unless they receive one and one-half times their regular rate of pay for all hours worked over eight hours in any workday, and over 40 hours in the workweek (or double time as specified below). Such employees must be compensated for overtime at not less than: 1. One and one-half times the employee’s regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday, and for the first eight hours worked on the seventh consecutive day of work in a workweek; and 2. Double the employee’s regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek. Pyramiding or “double-dipping” overtime hours is not permitted in California. This means employees receive premium pay for the greater overtime amount (weekly or daily, and not both). The applicable overtime rate is based on the employee’s “regular rate of pay.” To calculate the regular rate, in most situations, an employee’s total earnings for the workweek (e.g., hourly earnings, shift differentials, bonuses, etc.) is divided by the total hours worked during the workweek. For employees who are paid only one hourly rate, the regular rate is the same as that hourly rate. However, for employees who receive shift differentials, bonuses, or multiple rates of pay, for instance, the regular rate will be higher than the hourly rate. Hospitality employees often work in multiple positions that pay different rates, and receive bonuses for working certain shifts. For these reasons, failure to properly calculate the regular rate of pay poses a risk of substantial liability to employers. Time Records Employers must implement appropriate methods to track work hours. California Labor Code section 226 requires employers to keep accurate records containing the start and end times of each work period, meal period out/in times, split shift intervals, total daily and pay period hours worked, and total wages paid, among other data. These records must be accessible to employees upon reasonable request. Employees should acknowledge any after-the-fact revisions to their time records. For example, if an employee forgets to clock out/in for a meal period, the employer may manually update that employee’s time records to accurately reflect their meal period, but should have the employee provide written acknowledgment of the revision. The best practice is to record employees’ actual work time. That said, for convenience, many employers “round” hours worked to the nearest 15-minute increment. Although rounding technically is lawful provided employees are never deprived of a second of time they actually worked, the best practice is not to round time, particularly when electronic records reflect the exact times. Conclusion California’s wage-hour laws are complex and ever-changing. Hospitality employers are particularly at risk of wage-hour claims because of the nature of the workforce and industry. These employers must regularly audit their policies and practices for compliance with current state and local requirements. Jennifer Brown Shaw is a Principal of Shaw Law Group, PC, a Sacramento/San Francisco employment law boutique. The Firm’s practice exclusively focuses on representing management in employment law advice, training, and investigations. Ms. Shaw may be reached at 916.640.2240 or [email protected]. This article was co-authored by Melissa Whitehead, Of Counsel in the Firm’s Sacramento office. Ms. Whithead may be reached at 916.640.2240 or [email protected].
8 CALIFORNIA LODGING NEWS www.calodging.com AS THE HOSPITALITY INDUSTRY CONTINUES its post-pandemic recovery, staffing has emerged as one of the biggest challenges. With competition growing for existing talent in the U.S., many properties are considering bringing on international staff, especially to manage times of higher occupancy during summer tourist season and holidays. While international staffing offers hiring managers a significantly larger talent pool, hiring international workers also involves special considerations related to immigration and employment law. In this first installment of a three-part series, immigration attorney Keith Pabian answers some common questions hospitality organizations need to consider when thinking about employing international workers. Future installments will cover more complex issues as well as recruiting. Q: Can you describe the advantage of utilizing international workers? A: The biggest advantage is the ability to find workers willing and excited to perform crucial jobs at your organization. Staffing is one of the—if not the—largest crises facing the hospitality industry. Employing international workers not only can help solve this problem, it can introduce diverse cultures into your organization that can deliver a unique and welcome experience for guests and colleagues. Q: Can you describe the challenges in utilizing international workers? A: While international workers can solve staffing challenges, there are also some things to be aware of if you go this route. First, you need to make sure that you leave time to go through the application and international staffing process. These processes can take up to six months (for H-2B visas), so you need to plan and think ahead. Those that employ international workers are also agreeing to several legal obligations under U.S. immigration laws. It is important to know your organization’s legal requirements and ensure that you are meeting them at all times prior to, during, and after the workers’ employment. Q: Please explain the two types of visas available to the hospitality industry. A: The two visas primarily used in the hospitality industry are the H-2B and J-1 visas. The H-2B visa was created to allow seasonal organizations to employ workers in roles for up to 10 months of the year. It is a great visa to staff many roles in California destinations with significant seasonal peaks in summer or winter. The process goes through the employer, so this is a financial and workflow undertaking for the petitioning organization. In California, the H-2B visa would work Ask the Expert: Seasonal Staffing Discussion with a Focus on H-2B and J-1 Visas incredibly well for so many, but is currently being underutilized as a staffing solution. The other visa is the J-1 visa. This visa was created to allow recent graduates to come to the U.S. to further their learning in their fields of study. The two sub-types of J-1 visas that we see in the hospitality visa is the intern visa (available for up to 18 months with job rotations mandated about every three months) or the summer work and travel visa (available for up to four months). Q: What is the timeline to keep in mind when determining if international workers could benefit your property? A: It’s highly recommended that you analyze your staffing needs about six months in advance of when you need workers. This will allow you to apply for H-2B and/or J-1 visa while not missing any deadlines. It is also imperative to understand when to start recruiting and to have avenues to find international workers. My company, Seasonal Connect, provides a software platform to assist with the recruiting side of the process. Keith Pabian is an immigration attorney with a national practice focused on the hospitality industry. He is also the CEO and Co-Founder of Seasonal Connect (www.seasonalconnect.com), a software platform that was created for the hospitality industry to solve its biggest staffing and operational struggles. He can be reached at 617.939.9444 or [email protected]. This article was prepared for educational purposes only.
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Build a Stable Workplace, Celebrate Your Employees In today’s competitive job market, employers are constantly seeking new and innovative ways to attract and retain talented employees. One of the most effective strategies for achieving this is to provide a supportive work environment that encourages growth, development, and job satisfaction. In this article, we’ll explore the benefits of creating a supportive workplace and provide tips on how employers can foster such an environment. A supportive work environment is one in which employees feel valued, respected, and supported in their professional and personal lives. When employees feel supported, they are more likely to be engaged in their work, take on new challenges, and be productive. In addition, a supportive work environment can lead to increased job satisfaction and reduced turnover rates. So, how can employers create a supportive work environment? Here are some tips: 1. Encourage open communication: Encourage your employees to communicate openly and honestly with you and with each other. This can be achieved through regular check-ins, team meetings, and open-door policies. By creating an environment in which employees feel comfortable expressing their thoughts and concerns, you can address issues before they become major problems. 2. Offer professional development opportunities: Provide your employees with opportunities to learn and grow in their roles. This can include onthe-job training, attending conferences and seminars, and offering tuition reimbursement for continuing education. By investing in your employees’ professional development, you are showing them that you value their contributions and are committed to helping them reach their full potential. 3. Show appreciation: Recognize your employees for their hard work and contributions. This can be as simple as a verbal thank-you or as elaborate as an employee appreciation event. By acknowledging your employees’ efforts, you are showing them that their work is valued and appreciated. 4. Prioritize work-life balance: Encourage your employees to prioritize their health and well-being by offering flexible schedules, rewards, and time off. By supporting your employees’ personal lives, you are creating a culture of trust and respect. 10 CALIFORNIA LODGING NEWS www.calodging.com
5. Foster a culture of inclusivity: Create an inclusive work environment by celebrating diversity and promoting equity. This can include implementing diversity and inclusion training, creating employee resource groups, and providing accommodations for individuals with disabilities. By fostering a culture of inclusivity, you are showing your employees that they are valued and respected for who they are. In conclusion, creating a supportive work environment is essential for attracting and retaining talented employees. By implementing the tips above, you can foster a culture of growth, development, and job satisfaction that benefits both your employees and your organization. So, take the first step today and start building a supportive work environment that empowers your employees to succeed. www.calodging.com May/June 2023 11
12 CALIFORNIA LODGING NEWS www.calodging.com THE PRIVATE ATTORNEY GENERALS ACT (PAGA) is a California law that allows individuals to file lawsuits on behalf of the state for violations of labor laws, such as minimum wage, overtime, and meal and rest break requirements. PAGA claims allow employees to recover penalties for labor code violations that would otherwise only be available to state labor agencies. While the aim of PAGA is admirable, the negative impacts of PAGA are many. One example is illustrated by the disproportionate fee-splitting structure. Under the law, 75% of the penalties recovered in a PAGA lawsuit go to the state, while the remaining 25% go to the employee who filed the lawsuit and their attorneys. Of this 25%, the vast majority goes to the lawyer through legal fees, incentivizing the attorneys to seek out potential plaintiffs, regardless of whether a genuine injury occurred. This has led to a proliferation of PAGA lawsuits, with many attorneys specializing in PAGA cases, and some employers facing multiple PAGA lawsuits for the same alleged violations. However, in cases where genuine injury occurred, the plaintiff receives the smallest portion of each settlement. According to a report by the California Chamber of Commerce, from 2004 to 2017, PAGA lawsuits resulted in over $50 million in penalties paid to the state and over $550 million in attorneys’ fees. However, as discussed above, these cases aren’t in the workers’ best interests. In a PAGA claim pursued by attorneys, the average award paid to the employee is $1,256.38 and the average employer cost is $1,118,777.38. However, when claims are brought via the state labor department, the average award paid to an employee is $5,941 and the average cost to an employer is $789,936. Further, PAGA has created a cottage industry of lawsuits whereby lawyers file frivolous claims in order to extract large settlements from employers. As a result, the law has had a chilling effect on businesses, with some employers choosing to settle even meritless claims rather than face the risk of a costly lawsuit. To address these concerns, a ballot measure will appear in 2024 that would amend PAGA. Specifically, the measure, known as the California Fair Pay and Employer Accountability Act, would: • Resolve workers’ claims faster under the Labor Commissioner • Eliminate shakedown lawsuits • Avoid prolonged and costly court cases • Provide penalty payments to workers, not lawyers or the state As a result of its proposed repairs to the current litigation system, the California Fair Pay and Employer Accountability Act will encourage employers to comply with labor laws and reduce the number of frivolous lawsuits. In conclusion, while PAGA was intended to protect workers’ rights and ensure that labor laws are enforced, the law’s disproportionate fee-splitting structure and the proliferation of frivolous lawsuits mean that change is needed. The California Fair Pay and Employer Accountability Act of 2024 is our best way to achieve that change. PAGA—A Noble Idea in Need of Reform
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14 CALIFORNIA LODGING NEWS www.calodging.com FOR MORE THAN FOUR DECADES, Javier Cano has been taking care of guests and his teams for Marriott, from LA to Mexico, Hawaii and back to LA, where he oversees three different hospitality operations that together occupy a 54-story skyscraper downtown. But he also spends part of his time taking care of his fellow hoteliers. As the chair of CHLA’s Government + Legal Relations Committee, Cano can often be found in Sacramento helping to explain the organization’s stance on key issues to lawmakers and other officials. It’s a task he considers vital for the health of hospitality across California. “The legislative and regulatory landscape is a challenging one for the hotel industry,” he said. “Given this opportunity, I want to do anything I can to assist CHLA in this space and educate people about what will help our industry.” Cano sees his role as primarily educational, helping decision makers in the Capitol and state agencies understand how their actions can help or hinder an industry that is a vital part of the economy in a state that is the nation’s top tourist destination. Many elected officials and others in government don’t always connect the dots between the hospitality industry and the overall economic health of a community, Cano notes. Hotels do more than provide jobs and local taxes—they also support an extensive local ecosystem that benefits small businesses like florists, bakers, and other suppliers in the community. “We not only employ a lot of people, but there are so many others who depend on our success,” he said. One of the main issues for CHLA this year is legislation intended to clamp down on abusive serial lawsuits brought against properties under the Americans with Disabilities Act (ADA). These suits seek damages from properties for alleged violations of the ADA, but are almost always filed by a handful of law firms on behalf of an individual who has never stayed or attempted to stay at the properties. The real intent of the suits is to have a property agree to settle rather than absorb the cost of taking the case to trial—even though the plaintiff never suffered any actual harm and the property is likely to win the case. Cano’s interest in public policy grew from his long career managing properties for Marriott. He started with the company when it had just opened its 63rd hotel and has stayed with Marriott for 44 years since. Born in East LA, he is now on his fourth tour in Los Angeles as a hotelier, managing the JW Marriott Los Angeles LA LIVE; The Ritz-Carlton, Los Angeles; and The Ritz-Carlton Residences LA LIVE on Olympic Boulevard in the heart of downtown LA. “Really, a hotel GM is responsible for both a lot of people who work in our buildings as well as for the community,” he said. “So, part of the job is to learn who the elected officials are, reach out and speak to them, and put forward your perspective.” Recalling what former U.S. House Speaker Tip O’Neill once said—that “all politics are local”—Cano said that engaging local officials is something that any GM should consider. “I believe that elected officials are always willing to speak with you, and so people in our industry should take advantage of that,” he said. “Talk to them, build that relationship. It’s important that they hear about the things that are working—and the things that aren’t.” Javier Cano CHLA’s Government + Legal Relations Committee Chair
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16 CALIFORNIA LODGING NEWS www.calodging.com Legislative Action Summit CHLA’S 2023 LEGISLATIVE ACTION SUMMIT’S focus on advocacy, legislation, and engagement defined issues and process for California hotels and attendees who navigated Capitol politics with in-office visits with state senators and assemblymembers who are key to understanding and addressing the needs of the hospitality industry. Increasing hotel advocacy in city, county, and state legislative bodies was a theme struck by all the Summit’s speakers, including Assemblymembers Stephanie Nguyen and Sharon Quirk-Silva, on March 21 at the Sheraton Grand Hotel in Sacramento. Each speaker echoed how much the voice of individual hoteliers, particularly those in legislators’ districts, matter. “We continue to gain legitimacy at the state capitol when we take a clear position,” said Lynn S. Mohrfeld, CHLA President & CEO. “We strengthen our positions when we show individual legislators why we are making a specific ask.” Troy Flanagan, EVP of External Government Affairs and Industry Relations for the American Hotel and Lodging Association, echoed the impact that direct engagement with elected leaders has: “We know a rational request well told will serve us well even if it doesn’t always win the vote,” he said. Dominating the discussions were CHLA’s efforts to protect hoteliers from vexatious litigants who abuse the Americans with Disability Act for financial gain, clarification of resort fees as flagged by President Biden during his State of the Union address, updates to labor negotiations; and California’s critical need to resolve homelessness. Assemblymember Nguyen, who has introduced Assembly Bill 539, which would prevent lawyers from targeting hotels with shake-down claims about ADA issues, said: “This bill is greater than what is happening with hotels. It should be something we take to all industries, because if it can happen to hotels, it can happen to other businesses.” April Marie Dawson, Executive Director of the California Commission on Disability Access, championed early engagement and education about about ADA issues, saying, “Franchise hotel chains are number three on top 10 list of high-frequency defendants and alleged violations.” She encouraged all hotels to “convene conversations about ADA requirements before they become costly legal issues.” Heather Rozman, President and CEO of the Hotel Association of Los Angeles outlined the many ways the hotel community is working with city leaders to address Los Angeles’ number one issue of homelessness and protect hotels from bearing the burden of policies that impact their businesses. “Homelessness, Homelessness, and Homelessness are our top three issues,” she said. “It impacts our life, our business, and our community. We have to manage any solutions from our perspective, which needs our hotels to be engaged in the process.” More than 100 attendees met with more than 20 state Senators and Assemblymembers, sharing their perspective on key issues, listening, and reminding them about the importance hotels play in their district economy and California’s economy. Assemblymember Sharon Quirk-Silva, Chair of Arts, Entertainment, Sports, and Tourism briefed LAS attendees on issues and legislation before committee in 2023.
www.calodging.com May/June 2023 17 “Accessibility Standards in Your Hotel” Presented by April Dawson, Executive Director, California Commission on Disability Access. Troy Flanagan, EVP of External Government Affairs and Industry Relations for the American Hotel and Lodging Association. “CHLA State Legislative Update” Presented by Lynn Mohrfeld, President + CEO, CHLA. “Hotels and Politics in Los Angeles“ Presented by Heather Rozman, CEO & President, Hotel Association of Los Angeles.
18 CALIFORNIA LODGING NEWS www.calodging.com Reception CHLA sponsored the Marriott Legislative Reception on March 20th at the Sheraton Grand Hotel in Sacramento. Mayur Patel, Bayshore Inn & Motel Ventura; Mike Riverside, Riverside Hotel; Bijal Patel, Redwood Coast Hospitality; Laura Lee Blake, AAHOA; Lynn Mohrfeld, CHLA; and Maulik Pandya, Nick Patel and Yash Patel, South Pacific AAHOA Ambassadors. CHLA Board of Directors, Matt Humphreys, Hyatt Regency San Francisco; Cormac O’Modhrain, Sunstone Hotel Investors; Jon Handlery, Handlery Hotels; and Daniel Kuperschmid, Manchester Grand Hyatt San Diego.
www.calodging.com May/June 2023 19 Marriott General Managers Jonathan Litvack, Kandee Anderson, Javier Cano, and Nusrat Mirza attended the reception.
20 CALIFORNIA LODGING NEWS www.calodging.com Marketplace CHLA ACCESSIBILITY/ ADA COMPLIANCE ADA Compliance Consultants, Inc........................916-608-0961 ACCOUNTING SERVICES Nimble Accounting, Inc........866-964-6253 ACOUSTICAL CONTROL/ SOUND MASKING Sound Solution Group...........916-256-4207 ADVERTISING/MARKETING/ PUBLIC RELATIONS Sojern.............................................. 402-650-3807 AMENITIES/ROOM & HOTEL AMENITIES AM-PM Doc.............................888-AM PM Doc Chadsworth & Haig.................843-675-8250 Marietta Corporation.............800-950-7772 APPRAISERS HVS.................................................... 415-268-0351 ASSOCIATIONS Hotel Council of San Francisco..............................415-391-5197 Visit California Caroline Beteta 916-444-0410 [email protected] www.visitcalifornia.com Visit California is a nonprofit organization with a mission to develop and maintain marketing programs that keep California top-of-mind as a premier travel destination. AUDIO/VISUAL Encore Ross Gimpel 530-559-0700 [email protected] www.encoreglobal.com Encore is a leading provider in the global event technology services industry delivering creative production, advanced technology, and staging to help customers deliver more dynamic experiences. BANKS/BANKING SERVICES TMC Financing...........................415-989-8855 BANQUET SEATING/ TABLES & EQUIPMENT Southern Aluminum...............870-234-8660 BARTERING/TRADING IMS Barter......................800-287-3874 x1730 BATHROOM ACCESSORIES & SERVICES Samson Shower Systems, LLC..............................817-228-0619 VersaTraction, Inc....................714-973-4589 BEDS/MATTRESSES Ortho Mattress.........................310-844-4860 BENEFITS ADMINISTRATION Hotel Effectiveness Solutions........................................ 678-325-1150 Salary.com................................... 480-237-6130 CARPET & FLOORING SALES & SERVICE Embassy Carpets....................800-366-7847 CLEAN TECHNOLOGY CONTRACTORS Panasonic Life Solutions....................................... 510-203-3630 CLEANING SUPPLIES/ SYSTEMS HD Supply Hospitality.......... 800-431-3000 Renegade Brands USA, Inc.........................................216-789-0535 COMPUTER HARDWARE Dell.....................................................512-723-6063
www.calodging.com May/June 2023 21 CHLA MARKETPLACE CONSULTING & TRAINING Accurate Ergonomics...........707-894-4544 Businesses Ending Slavery & Trafficking (BEST)............................................. 206-905-6843 Filigree Training Solutions, LLC............................646-233-7769 Hogan Hospitality......................415-331-1061 KML Hospitality..........................925-212-0701 Petra Risk Solutions..............800-466-8951 Singer Associates, Inc...........831-227-5984 STR................................................... 615-824-8664 Wallace Hospitality Solutions...................................... 800-450-0082 CREDIT CARD SERVICES Casablanca Payments...........203-253-7259 CASHDROP Ben Vear 253-987-6787 [email protected] https://cashdrop.biz Get all the premium features of ecommerce platforms like Shopify and Square with none of the monthly subscription costs and zero seller fees. CASHDROP is the easiest way for retailers, restaurants, and event organizers to start selling online through a custom link or in-person with a QR code. Heartland Payment Systems.........................................530-415-6850 Merchant Cost Consulting.....................................617-306-2578 Soar Payments, LLC..............888-225-9405 DIRECT TV PROVIDER Commercial Connect Television, Inc..............................877-789-7995 MTV, Inc..........................................818-772-4200 ECO-FRIENDLY Evolve Charging Corp USA......................................604-314-6022 EDUCATIONAL INSTITUTIONS California State Polytechnical University - Pomona..............909-869-3105 California State University - Long Beach.................................562-985-4485 San Diego State University...................................... 619-594-4964 University of San Francisco..............................415-422-2581 EMPLOYEE RELATIONS/ BENEFITS Petra Risk Solutions...............800-466-8951 EMPLOYMENT AGENCIES/SITES ZipRecruiter, Inc.........................877-252-1062 ENERGY MANAGEMENT INNCOM by Honeywell..........714-699-6131 ENTERTAINMENT Union Square Business Improvement District............................................. 415-781-7880 EVENT PLANNING & SERVICES COJ Events...................................310-795-7305 FINANCING/FINANCIAL PLANNING Hallmark Funding Corporation.................................. 916-784-2614 Hospitality Funding................650-740-9875 Pinnacle Bank............................408-637-6030 FLOOR COVERINGS/ EQUIPMENT Durkan—Mohawk Group Hospitality Brad Olnhausen 706-483-8121 [email protected] Mohawk Group’s Durkan Hospitality approaches flooring with lasting impressions in mind. From running line Luxury Vinyl Tile to custom design carpets, Durkan offers a wide range of flooring solutions for guestrooms, corridors, meeting spaces, and restaurants. FOOD SUPPLIERS/ DISTRIBUTORS BruxMix..........................................714-803-9060 Just ‘N’ Case Essentials, Inc............................866-636-8225 Single Serve Solutions.........707-532-0884 FRANCHISING Choice Hotels International................................301-593-5600 InterContinental Hotels Group...............................770-604-8149 Red Roof Franchising.............713-576-7459 FURNITURE/FIXTURES & EQUIPMENT (FF&E) Case Goods Refinishing.......757-617-4459 ERS Hospitality............................415-863-7191 Interia.............................................. 619-205-4489 HEATING Pro Star Mechanical Services...........................................714-999-1177 HOTEL BROKERAGE New Gen Advisory - The Bowman Post Group...............818-667-0627
22 CALIFORNIA LODGING NEWS www.calodging.com CHLA MARKETPLACE HOTEL MANAGEMENT Acme Hospitality......................805-456-4291 Apple Hospitality REIT...........804-344-8121 BRE Hotels & Resorts.............718-921-8124 Concept Hotel Group............650-839-6274 Crescent Hotels & Resorts........................................703-279-7820 Davidson Hospitality Group...............................................678-349-0909 Destination Properties, LLC.........................760-250-0998 DiamondRock Hospitality Company...............240-744-1150 Edward Thomas Collection.....................................310-859-9366 Ellis Hospitality............................415-775-8116 Ensemble Hotel Partners.......................................... 562-257-1005 Extended Stay America Corporate Office...................... 864-573-1600 Four Sisters Inns..........831-649-0908 x114 G6 Hospitality, LLC.................972-360-5916 Global Vision Hotels, Inc......650-504-4119 Hotel Managers Group, LLC...................................858-673-1534 Huntington Hotel Group.......972-510-1200 Hyatt Hotels Corporation.................................301-380-3000 Interstate Hotels & Resorts................................. Johnson Hospitality...............925-730-4930 K&K Hotel Group......................281-530-1500 Loews...............................................212-521-2000 Noble House Hotels & Resorts........................425-827-8737 OTO Development, LLC....... 949-246-9273 Pacific Plaza Hotels, Inc.......510-832-6868 Pacifica Hotel Company......805-957-0095 Park Hotels & Resorts............571-302-5757 Radiate Hospitality..................650-424-1400 Reneson Hotel Group............415-883-4400 Ridgemont Hospitality..........510-569-4400 RLJ Lodging Trust....................301-280-7777 Rosewood Hotels & Resorts, LLC...........................310-228-5000 Service Properties Trust.....617-964-8389 Sonesta Hotels..........................800-766-3782 Springboard Hospitality......818-905-8280 Stonebridge Companies.....303-785-3100 Storey Hospitality....................650-880-1000 Summit Hotel Properties.....512-538-2300 The Mayer Corporation.........949-759-8091 Xenia Hotels & Resorts..........407-317-6950 HOTEL/RESTAURANT EQUIPMENT & SUPPLIES Frank & Ron Hotel-Motel Supply, Inc....................................510-568-4072 HUMAN RESOURCE SERVICES Heartland Payroll Rodney Biggs 858-886-9440 [email protected] www.heartland.us Balance your business’ time and attendance, human resources administration, tax reporting, and more in one online, integrated suite. Whether you’re looking for an easier way to pay employees or maintain compliance with your state’s HR laws, Heartland provides payroll services to businesses large and small with our customization solutions. Endorsed by CHLA. Hireology....................................... 844-337-0422 Hotel Employee Rate BV....................................31-062-787-8043 INFINITI HR...................................623-455-6234 Paychex.......................................... 661-476-7578 Seasonal Connect....................617-716-6491 SouthCoast Services Company, LLC............................858-242-5690 The Crew, Inc...............................630-780-0320 Workstream..................................801-472-3953 ICE MAKERS Western Pacific–Manitowoc Ice Scott Haag 2953 E Hamilton Ave Fresno, CA 93721 559-266-9505 [email protected] www.teamwpd.com Ice machines, water filtration, disinfection devices, refrigerators and freezers, cooking equipment, and more. Six locations in California and Nevada. INSURANCE SERVICES/ BROKERS DiBuduo & DeFendis Insurance...................................... 831-537-0730 Heffernan Insurance Brokers........................................... 650-842-5246 Petra Risk Solutions Ida Gonzalez 800-466-8951 [email protected] www.petrarisksolutions.com Petra Risk Solutions specializes in insurance, risk management, and employee benefit solutions for the hospitality industry. Petra is offering CHLA members exclusive discounts and access to their industry-leading Hospitality Risk Management Program, P3. Sandin Insurance Group......503-381-8583 Suitelife Underwriting Managers......................................877-409-8069 UnitedHealth Group Leslie Teague 763-361-6963 [email protected] www.optum.com The California Hotel & Lodging Association (CHLA) is part of a strategic alliance program to help address the diverse needs of the hospitality industry. The Hospitality Associations Alliance, a strategic alliance platform created by UnitedHealth Group, offers exclusive discounts and solutions that benefit CHLA members and their employees. INTERNET SERVICES Cyberweb Hotels, LLC...........949-331-4925
www.calodging.com May/June 2023 23 CHLA MARKETPLACE KITCHEN HOOD/ EXHAUST CLEANING Action Duct Cleaning Company, Inc...............................626-791-7870 LAUNDRY DESIGN & INSTALLATION Western State Design........... 800-633-7153 LAUNDRY EQUIPMENT/ SUPPLIES Alliance Laundry Systems Distribution West..................... 323-490-1868 Bestway Laundry Solutions........................................951-734-9430 Taylor Houseman.....................925-432-0323 LAW FIRMS/LEGAL SERVICES Ballard Rosenberg, Golper & Savitt, LLP Richard S. Rosenberg 818-508-3700 [email protected] When it comes to labor and employment law, smart employers turn to us. Berding and Weil......................800-838-2090 DCap Claims............................... 702-334-5705 DPA Attorneys at Law........... 760-273-0007 Fisher Phillips Jeffrey Thurrell 949-798-2158 [email protected] www.fisherphillips.com Fisher Phillips is a national law firm specializing in labor and employment law and committed to providing practical business solutions for employers’ workplace legal problems. Fisher Phillips attorneys help clients avoid legal problems and are dedicated to providing exceptional client service. The firm has over 400 attorneys in 36 offices. Hirschfeld Kraemer..................310-255-1821 Holland & Knight, LLP............214-964-9500 Miller Law Group.......................650-566-2290 Nossaman, LLP...........................949-477-7617 Stokes Wagner, ALC...............213-618-4124 LINENS/BEDDING/TEXTILES A1 American................................833-205-2200 Comphy Company..................323-225-8234 H&I Hospitality & Institutional Supplies..............562-544-1942 Venus Group...............................949-609-1299 LOCKS/KEYS/ LOCKING SYSTEMS Acculock, Inc................................817-637-1236 ASSA ABLOY Global Solutions........................972-907-2273 Dormakaba USA, Inc..............248-583-3700 MANAGEMENT CONSULTANTS 24Seven Hotels..........................949-734-6401 American Hospitality Services...............530-662-7750 Baney Corporation...................541-749-1050 CIM Group...................................323-860-9558 Empire USA, LLC......................310-394-6300 Evans Hotels...............................858-777-6705 Franklin Croft..............................858-454-2188 Greystone Hotels......................415-915-0426 Host Hotels & Resorts...........240-744-1000 Inns by the Sea...........................831-624-0101 Kintetsu Enterprises Company of America..............213-617-2000 Lyon & Lyon Property Management.............................. 619-296-6333 Met West Terra..........................504-566-4754 Morrison & Company.............858-454-5633 Pacific Hospitality Group....949-861-4700 Pebblebrook Hotel Trust......240-507-1300 Samata Management............805-544-5651 Sunstone Hotel Investors, Inc.............................949-330-4000 Waterford Hotels & Inns........650-347-1222 Woodside Hotels & Resorts......................................650-330-8888 Zenique Hotels...........................209-602-2123 MARKETING/DIGITAL MARKETING SERVICES Q4Launch..................................... 970-963-7208 rezStream..................................... 720-420-7783 MATTRESS RECYCLER Mattress Recycling Council............................................ 707-307-3052 MOBILE HOSPITALITY SOFTWARE Pierre Mobile Concierge.....647-970-4406
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