New York City Council member Julie Menin proposed legislation on July 18 aimed at stricter regulation of the hotel industry in New York. The new law would require hotel operators to obtain a license before opening for business, and it would prohibit outsourcing of key services such as dining. This move is seen as promoting unionization in the hotel industry, sparking intense opposition from related sectors.
Currently, New York City hotels are only required to obtain a Certificate of Occupancy from the Department of Buildings and safety approval from the Fire Department to open for business. The newly introduced law adds an additional layer of oversight: a business license specifically for the hotel industry, with an annual fee of $200 and a one-year validity period.
According to information on the City Council website regarding the legislation proposal “Intro. 991,” the bill mandates that hotels must obtain a license to operate in New York City. It also stipulates requirements such as safety training for “core” workers like front desk staff, security, and cleaning personnel to enhance safety and hygiene standards. Failure to meet these requirements could result in the Department of Consumer and Worker Protection (DCWP) of New York City refusing to issue or renew licenses, or suspending or revoking them midway. The law also includes provisions to prohibit hotels from outsourcing their dining services to third parties and prohibits third parties from employing their own workers.
This law has faced opposition from the Hotel Association of New York City, which represents 280 hotels with 80,000 rooms, labeling it as a “nuclear bomb” for the hotel industry.
“The new regulations proposed by Councilwoman Menin may raise hotel room prices and impact the hotel industry,” the organization wrote on platform X, “This is a ‘nuclear bomb’ for the industry.” However, supporters believe it will protect workers’ rights and consumer safety.
Council member Menin told the media that her goal is to protect hotel guests, employees, and neighbors from the harm caused by a few operators of unsafe hotels.
“Licensing is a very important and effective tool to ensure compliance with safety standards across the industry,” Menin said. “Most hotels in major U.S. cities have licenses, and New York City is one of the few cities where hotels operate without regulation or licenses.”
She mentioned that this legislation proposal was initiated in response to a doubling of complaints from hotel guests and neighbors to the City’s consumer agency over the past five years.
Another impacted industry is the New York dining sector. The NYC Hospitality Alliance sent out an urgent email stating that this legislation will “destroy” the city’s dining industry.
“If this legislation becomes law, it will fundamentally terminate countless leasing and management agreements as these agreements are signed between third-party dining companies and the hotels they are located in,” the alliance stated in a release. “This will cause chaos, create convoluted litigation between third-party dining companies, hotels, and the government, and lead to many restaurants and bars closing down, causing a blow to workers being unemployed.”
Currently, two Chinese-American council members and two Korean-American council members have signed in support of the proposal; the City Council will hold a public hearing on this proposal at City Hall on July 30th.