Editorial | ‘Safe Hotels Act’ cannot be voted on until this clause is removed

On paper, the “Safe Hotels Act” — a sweeping new effort before the City Council to regulate the hotel industry — seems to have the best interests of guests and staff in mind. But the devil, as they say, is in the details.

There is one clause in the legislation — Intro. 991, sponsored by Manhattan Council Member Julie Menin — which can be a poison pill to the entire tourism industry in New York City. If the act as-is becomes law, it threatens to completely upend how hospitality companies do business in New York, and cause financial ruin to small businesses which the industry supports.

The Safe Hotels Act has been hotly debated in recent weeks between supporters such as Menin and local labor unions such as the Hotel Trades Council; and opponents such as the Hotel Association of NYC. Supporters say the bill is essential toward creating safe workplaces for hotel staff, securing accommodations for guests, and combating crimes such as larceny, sexual assault and sex trafficking. 

The main concern among opponents, however, is one clause in the Safe Hotels Act that addresses the use of third-party contractors providing various services at hotels, such as housekeeping and security. Many of these third-party firms are small, independent businesses based in New York that employ tens of thousands of people supporting the hotel industry’s functioning. 

As currently constituted, the act states, “Contracting to any third parties for core employees, including staffing agencies or other contractors or subcontractors, is not permitted except that a hotel owner may retain a single managing agent to manage all hotel operations at a hotel on the hotel owner’s behalf.” This section of the bill would not apply to “bona fide third parties located on the hotel’s premises or their employees.”

Under this clause, the city would essentially be directing the hiring practices of every hotel in the city. Opponents of the bill say that this clause would force hotel operators to nullify all of their preexisting arrangements with contractors and subcontractors and hire their own workers at greater expense. Many of the contractors and subcontractors would be forced out of existence, potentially forcing thousands of New Yorkers to the unemployment line. 

Private contracting firms may reduce a hotel’s bottom line, but they also help ensure that hotels are properly staffed and maintained. If hotels are forced to dig into their coffers to hire their own staff, many will staff at the barest minimum. This will lead to the deterioration of standards and guest experience while also exacerbating current quality-of-life concerns which this act seeks to address.

If there is genuine interest in making New York City hotels safer, then this damning third-party clause must be erased from the Safe Hotels Act before it comes to a City Council vote.