Partner Cliff Risman was quoted in the Law360 article, “Huge Hotel Job Losses Reported Due to COVID-19,” about the implications of the estimated 4 million U.S. hotel employees who have lost jobs due to the COVID-19 pandemic. The American Hotel and Lodging Association estimates that the job losses will continue to grow and affect hotel workers in every state.
Risman told Law360 that the situation could get worse for hoteliers as fixed costs remain in the face of declining revenues. “Frankly, none of the AHLA data surprises me," Risman said. "I suspect the expected job losses may not be light depending how long this continues. It's a mess, and there's no playbook. People are making this up as we go, and unfortunately, it will get worse before it gets better."
Lawyers who handle employment matters in the hotel industry can expect to keep busy over the weeks to come, Risman added, noting that he spent the weekend and much of Monday advising hotel clients on whether they should close, what kind of skeleton operations they might run and how to deal with staff reductions.
Risman is co-chair of Foley’s Hospitality & Leisure Industry Team.