Skip to main content
  • Personal
  • Business
  • Foundation
    Close
  • Select Region
    • Global
    • India
    • MENA
  • mySHRM Login
  • MySHRM
    • Dashboard
    • Account
    • Logout
SHRM
  • Membership
    • Membership

      As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events.

      Membership Tiers
      • Professional
      • Student
      • Global
      • Executive
      • Business
      Membership Benefits
  • Learning
    • Learning

      Build capability, credibility, and confidence to influence strategy, shape culture, and drive measurable business impact.

      SHRM Certification

      Demonstrate your ability to apply HR principles to real-life situations.

      • Choosing Your Certification
      • SHRM-CP
      • SHRM-SCP
      • How to Get Certified
      • Prepare for the Exam
      • Recertification
      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

      Specialty Credentials

      Demonstrate targeted competence and enhance your HR credibility.

      Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      • Essentials of HR
      • eLearning
      Qualifications

      Gain a deeper understanding and develop critical skills.

  • Attend
    • Events

      Demonstrate your ability to apply HR principles to real-life situations.

      • SHRM26 Annual Conference & Expo
      • The AI+HI Project 2026
      • Talent 2026
      • Linkage Institute 2026
      • BLUEPRINT 2025
      State Conferences

      Attend a SHRM state event to network with other HR professionals and learn more about the future of work.

      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

      Webinars

      Learn live and on demand. Earn PDCs and gain immediate insights into the latest HR trends.

  • Resources
    • Resources

      Stay up to date with news and leverage our vast library of resources.

      • Flagships
      • HR Research
      • Legal & Compliance
      • Latest News & Trends
      • Tools & Guides
      • Webinars
      HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • HR Technology
      • Workplace Violence Prevention
      Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

  • Community
    • Find a SHRM Chapter

      Easily find a local professional or student chapter in your area.

      • SHRM Northern California
      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      Volunteers

      Learn about volunteer opportunities with SHRM.

  • Shop
    • SHRM Store

      Shop for HR certifications, credentials, learning, events, merchandise and more.

      Workplace Essentials
      • SHRM Memberships
      • SHRM Certification
      • Specialty Credentials
      • HR Tools & Tech
      Education
      • Seminars
      • eLearning
      • Books
      Merchandise
      • Accessories
      • Apparel
      • Office & Home
Become a Member
Renew
Rejoin Now
Renew
Ask an HR Advisor
Close
  • Personal
  • Business
  • Foundation
  • Membership
    back
    Membership
    • Membership

      As a SHRM Member®, you’ll pave the path of your success with invaluable resources, world-class educational opportunities and premier events.

      Membership Tiers
      • Professional
      • Student
      • Global
      • Executive
      • Business
      Membership Benefits
  • Learning
    back
    Learning
    • Learning

      Build capability, credibility, and confidence to influence strategy, shape culture, and drive measurable business impact.

      SHRM Certification

      Demonstrate your ability to apply HR principles to real-life situations.

      • Choosing Your Certification
      • SHRM-CP
      • SHRM-SCP
      • How to Get Certified
      • Prepare for the Exam
      • Recertification
      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

      Specialty Credentials

      Demonstrate targeted competence and enhance your HR credibility.

      Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      • Essentials of HR
      • eLearning
      Qualifications

      Gain a deeper understanding and develop critical skills.

  • Attend
    back
    Attend
    • Events

      Demonstrate your ability to apply HR principles to real-life situations.

      • SHRM26 Annual Conference & Expo
      • The AI+HI Project 2026
      • Talent 2026
      • Linkage Institute 2026
      • BLUEPRINT 2025
      State Conferences

      Attend a SHRM state event to network with other HR professionals and learn more about the future of work.

      Seminars

      Stand out from among your HR peers with the skills obtained from a SHRM Seminar.

      Webinars

      Learn live and on demand. Earn PDCs and gain immediate insights into the latest HR trends.

  • Resources
    back
    Resources
    • Resources

      Stay up to date with news and leverage our vast library of resources.

      • Flagships
      • HR Research
      • Legal & Compliance
      • Latest News & Trends
      • Tools & Guides
      • Webinars
      HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • HR Technology
      • Workplace Violence Prevention
      Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

  • Community
    back
    Community
    • Find a SHRM Chapter

      Easily find a local professional or student chapter in your area.

      • SHRM Northern California
      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      Volunteers

      Learn about volunteer opportunities with SHRM.

  • Shop
    back
    Shop
    • SHRM Store

      Shop for HR certifications, credentials, learning, events, merchandise and more.

      Workplace Essentials
      • SHRM Memberships
      • SHRM Certification
      • Specialty Credentials
      • HR Tools & Tech
      Education
      • Seminars
      • eLearning
      • Books
      Merchandise
      • Accessories
      • Apparel
      • Office & Home
Become a Member
Renew
Rejoin Now
Renew
Ask an HR Advisor
  • Select Region
    • Global
    • India
    • MENA
SHRM
mySHRM Login
  • MySHRM
    • Dashboard
    • Account
    • Logout
Close

  1. Topics & Tools
  2. Employment Law & Compliance
  3. Some New York City Hotels Must Pay Severance to Service Workers
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
News

Some New York City Hotels Must Pay Severance to Service Workers

November 8, 2021 | Peter N. Moss, Thomas P. Piekara and Shannon D. Azzaro © Jackson Lewis

A woman wearing a mask is cleaning a table in a hospital.


​Under a New York City law (Int. 2397-2021-A), hotels with at least 100 rooms must pay weekly severance of $500 per employee per week to laid-off employees for up to 30 weeks if their hotel either 1) experienced a mass layoff of 75 percent or more of their workforce employed as of March 1, 2020, during any 30-day period or 2) closed to the public on or after March 1, 2020, and has not yet (a) as of Oct. 11, 2021, recalled 25 percent or more of its employees employed as of March 1, 2020, and (b) reopened to the public by Nov. 1, 2021.

The city has not issued guidance on the interpretation and enforcement of the law.

Triggering Events

Under the law, the severance pay obligation is triggered where the hotel experienced a covered "closure" or "mass layoff."

A closure that would trigger the severance pay obligation means that the hotel:

  • Was closed to the public on or after March 1, 2020.
  • Did not, by Oct. 11, 2021, recall at least 25 percent of the employees employed as of March 1, 2020.
  • Did not reopen to the public by Nov. 1, 2021.

A "mass layoff," which also would trigger the obligation, means a reduction in force that is not the result of a closure, lockout, or strike and that resulted in a layoff by a hotel employer during any 30-day period of at least 75 percent of the employees engaged in hotel service at the hotel as of March 1, 2020.

Covered Employees

The law provides for severance payments of $500 per week to "covered hotel service employees," up to a maximum of 30 weeks.

"Covered hotel service employees" include individuals who were:

  • Employed for at least one year by the hotel on March 1, 2020.
  • Employed to provide work in connection with the operation of the hotel.
  • Laid off after March 1, 2020, due to a closure or a mass layoff.

"Covered hotel service employees" expressly excludes managerial, supervisory, or confidential employees and those who exercise control over the management of the hotel.

The obligation to pay severance ceases at the later of when either the employee is recalled, or, if the hotel that experienced a closure reopens, on the date when the hotel is reopened to the public and has recalled at least 25 percent of its employees employed as of March 1, 2020.

Calculating Percentage of Employees

While "covered hotel service employees" is expressly defined, the term "employees" is not. Accordingly, all references to percentages (i.e., mass layoffs of at least 75 percent employees or the recall of at least 25 percent employees) may need to include all employees, not just those defined as "covered hotel service employees." 

Other Uncertainties

The new law also has a number of vague terms giving rise to legal uncertainty. For example:

  • It is unclear if severance needs to be paid to employees of vendors or concessionaires operating within a hotel.
  • It is unclear how employees who leave voluntarily, or refused to return when recalled, are to be treated.
  • It is unclear under what circumstance an employee is excluded as a "managerial, supervisory or confidential employee." This is a common issue for positions like a "housekeeping supervisor" who typically inspects the work of others.

Remedies

The consequences of failing to comply with the law can be significant. As a result, many hotels are complying with the law despite its legal uncertainty. Severance payments are required within five days of the end of the week for each week the employee is entitled to severance.

The law provides for a private right of action and the employee would be entitled to double damages plus reasonable attorney's fees and costs.

Hotels Permanently Closed, Converted

Hotels that are permanently closed or converted (or in the process of converting) to alternative use are exempted from the severance pay provision, so long as they offer covered hotel service employees severance of 20 days per year of service and the severance is tied directly to the conversion. This severance must be paid at the same rate the covered hotel service employee is paid for paid days off.

A lawsuit was filed by the Hotel Association of New York City on Oct. 8 challenging the validity of the law and seeking declaratory and injunctive relief. However, absent some action to enjoin the implementation of the law, the lawsuit itself did not prevent the law from going into effect.

Peter N. Moss, Thomas P. Piekara and Shannon D. Azzaro are attorneys with Jackson Lewis in the New York City metro area. © 2021 Jackson Lewis. All rights reserved. Reposted with permission. 

Compensation Management
Employment Law & Compliance

Was this resource helpful?

Leave Feedback

SHRM-CP Promo Image
Validate your HR expertise

Earning your SHRM-CP credential makes you a recognized expert and leader in the HR field.

Get Certified


Related Content

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
Rising Demand for Workforce AI Skills Leads to Calls for Upskilling

As artificial intelligence technology continues to develop, the demand for workers with the ability to work alongside and manage AI systems will increase. This means that workers who are not able to adapt and learn these new skills will be left behind in the job market.

Workplace Compliance Newsletter

Keep abreast of employment law and compliance developments and their wide-reaching impacts.

Success title

Success caption

Manage Subscriptions
Our Brands

SHRM Foundation Logo
SHRM Executive Network Logo
CEO Circle Logo
SHRM Business Logo
SHRM Linkage Logo
SHRM Labs
Overview

  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM
  • Post an HR Job
SHRM Named to Newsweek's 2026 America's Top Online Learning Provider List
Advocacy

  • SHRM Advocacy
  • Federal Policies
  • State Affairs
  • Global Policy
  • Take Action
  • SHRM E2 Initiative
Brand Partnership

  • Partnership Opportunities
  • Advertise with Us
  • Exhibit & Sponsorship
  • Recertification Providers
  • Book a Speaker
Member Resources

  • Ask an HR Advisor
  • SHRM Newsletters
  • SHRM Flagships
  • Topics & Tools
  • Find an HR Job
  • Vendor Directory

© 2026 SHRM. All Rights Reserved
SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer

Follow Us

  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube
Feedback

  1. Your Privacy Choices

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Professional Content

SHRM Members enjoy unlimited access to articles and exclusive professional content resources.

Already a member? Login
Free Article

Login to unlock unlimited access or join SHRM today to get unlimited access to articles and member-exclusive resources.

Already a member? Login
Limit Reached

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member? Login
Free Article

Login to unlock unlimited access or join SHRM today to get unlimited access articles and member-exclusive resources.

Already a member? Login
Limit Reached

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member? Login
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member? Login
Join SHRM for Exclusive Access to Professional Premium Content

SHRM Members enjoy unlimited access to articles and exclusive professional premium resources.

Already a member? Login
Join SHRM for Exclusive Access to Student Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member? Login
Join SHRM for Exclusive Access to Executive Network Content

SHRM member enjoys unlimited access to articles and exclusive executive member resources.

Already a member? Login

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now