Hospitality Law basics

• Managers must understand the legal environment due to the unique operating environment
• It is estimated that 60-70% of decisions made daily in hospitality have legal dimensions
• These decisions influence the potential for litigation

Definitions

• Attorney: A person trained and legally authorized to act on behalf of others in matters of the law
• Litigation: The act of initiating and carrying on a lawsuit, often referring to the lawsuit itself

Legal Management

• Law: The rules of conduct and responsibility established and enforced by a society
• Understand law's historical origins, evolutionary nature, and how preventative management can minimize the chances of litigation

Historical Origins of Law

• Common Law: Laws derived from historical customs, traditions, and court decisions
• Civil Law: The body of law created by governmental entities, usually in the form of codes or statutes, concerned with private rights

Evolutionary Nature of Common Law

• Hospitality Law: Regulations related to the hospitality industry which covers the provision of food, lodging, travel, meetings, events, and entertainment services to guests, employees, vendors, and clients

Preventative Legal Management

• STEM: A process implemented to reduce employee errors and litigation
• STEM is a process to stem "the tide of litigation"
• Liable: To be legally responsible or obligated

Components of STEM

• Select the right employee for the specific job.
  • One should not just hire anyone at the last minute
  • There are specific job qualifications, written job specifications, and using information derived from a thorough investigation for all candidates
• Train employees properly the first time due to it being easier and less costly than retraining.
  • Ensure that the trainer is properly trained.
  • Assess training efforts to verify retention.
• Educate on new trends, technological innovations, laws, rules, and regulations which impact segments of the industry.
• Manage and Motivate
  • Lead by example, because today's culturally diverse workforce will require diverse motivating techniques
  • People are motivated by different things, so find out what motivates your employees
  • Involve employees in the process
  • Ask your employees how you are doing as a manager

Positive Management and Employee Loyalty

• How to become a positive manager and build employee loyalty:
  • Raise employee morale
  • Reduce turnover
  • Enhance service
  • Enhance customer satisfaction
  • Reduce litigation