Wrongful Termination Claims: What Hospitality Employers Should Know

The following article will cover:

• The permissible reasons for employee termination under New York law.
• Strategies business owners and managers in the hospitality industry can use to guard against wrongful termination claims.
• The legal prerequisites for severance pay to hospitality workers in New York.

What Are The Permissible Reasons For Termination Of Employees Under New York Law?

In New York, employers have a broad latitude when it comes to terminating employees. Fundamentally, this means that an employee can be terminated for any reason – or no reason at all – as long as it doesn't break the law.

Employees can be terminated for reasons including but not limited to dishonesty, theft, chronic tardiness, or disruptive behavior. However, you cannot legally terminate an employee based on discrimination of their sex, creed, race, nationality, disability, union status, military status, or place in another protected category.

How Can Business Owners And Managers In The Hotel And Restaurant Industry Guard Against Wrongful Termination Claims?

Protecting against wrongful termination claims in the hospitality industry requires special considerations based on whether the establishment operates in a unionized or non-unionized environment.

In Unionized Settings:

• The collective bargaining agreement defines the terms of employment and termination.
• Before taking any disciplinary actions, it's advisable to discuss the matter with both the employee and their union representative as this approach often preempts potential disputes.
• Some claims, such as those based on discrimination or harassment, might not be entirely resolved through union processes and could require additional legal action.

In Non-Unionized Settings:

• Without a union representative to advocate for the employee, the onus is on the employer to ensure fair and transparent processes.
• Proper documentation, including supervisor statements and records of misconduct, is essential.
• Engage in comprehensive exit interviews and allow the employee to share their perspective.
• Certain egregious acts, (such as carrying weapons or distributing drugs within the workplace), often warrant immediate termination.
• In ambiguous situations, thorough investigations are crucial for staving off wrongful termination claims. In these instances, seeking advice from labor law attorneys early on can be invaluable.

What Are The Legal Requirements For Providing Severance Pay To Terminated Restaurant And Hotel Employees In New York?

Unlike many European countries where severance pay is a legal requirement, and certain states like California that have specific notice requirements, New York doesn't mandate severance pay for terminated employees in the hospitality sector.

In unionized environments, severance pay is often outlined in the union agreement. Meanwhile, in non-union settings, if an employer's handbook or policy states that severance will be provided – for example, two weeks' pay for each year of employment – the employer should adhere to this policy.

Inconsistently applying such a policy, especially if it leads to discriminatory outcomes (e.g., based on race), can expose the employer to legal risks. However, it's essential to note that while discriminatory practices in providing severance can lead to legal actions, there's no overarching legal requirement in New York for employers to provide severance pay in the first place. For more information on Wrongful Termination Claims Against Employers, an initial consultation is your next best step.