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In a decision of great import to the New York City hospitality industry, a federal court has held that a New York City statute mandating payment of severance benefits to certain covered...
Federal court has held that a New York City statute mandating payment of severance benefits to certain covered hotel service employees was not preempted by ERISA. Compliance with the Severance Law did not require an employer to make individualized benefit assessments
NEW YORK (Legal Newsline) – A New York City hotel tired of paying severance to workers laid off during the COVID-19 pandemic has lost its challenge of the law requiring it to do so.
New York City hotels remain affected by statutory severance obligations imposed by the City’s Severance Law, which requires NYC hoyels to pay eligible employees weekly severance payments for up to 30 weeks.
As previously discussed, the New York City Council passed a law at the end of last year requiring certain hotels in the City to pay eligible employees weekly severance payments for up...