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ARTICLE · 15 OCTOBER 2021

NYC Enacts Severance Pay Requirements For Displaced Hotel Workers

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Severance payments are owed to all such employees beginning on October 11, 2021, for up to 30 weeks in the amount of $500 per week, or up to a total of $15,000.

United StatesEmployment and HR
Michael Lebowich
Michael Lebowich
Steven Porzio
Steven Porzio
Arielle Kobetz
Arielle Kobetz
Rachel L. Kessler
Rachel L. Kessler
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Effective as of October 5, 2021, Int. 2397-2021 requires operators of "transient hotels" (as defined by Section 12-10 of the New York City zoning resolutions) to pay their employees severance pay if: (1) the hotel closed to the public and has not, by October 11, 2021, recalled at least 25% of the number of employees it employed as of March 1, 2020 and has not reopened to the public by November 1, 2021; or (2) the hotel underwent a mass layoff after March 1, 2020 that resulted in the loss of work by at least 75% of employees during any 30-day period. There is an exception for hotels that have closed permanently and are in the process of converting to an alternative use, provided that: (1) the hotel employees were offered severance of at least 20 days' pay per year of service; and (2) the severance was specifically tied to the conversion.

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