Law22: Legal Aspects of Food Service

1. IMPORTANCE OF
KNOWLEDGE OF
LAWS IN THE
HOSPITALITY
INDUSTRY

2. • A working knowledge of laws governing the hospitality
industry isn't just a nice bonus piece of knowledge.
Employees, managers and other staff members have to
know enough about the law to avoid breaking it because
failing to follow state and federal laws can result in fines,
lawsuits and negative publicity.

3. KEEPING CUSTOMERS
SAFE
• Food safety laws play a major role in the hospitality industry,
and knowledge about how to clean and store food can keep
your customers safe and help your business avoid lawsuits
and fines. Other safety laws include the Hotel and Motel Fire
Safety Act, which maintains a list of hotels that meet
minimum fire safety guidelines. If your hotel follows these
guidelines, federal employees can stay at your business,
increasing your customer base, and customers can rest easy
knowing that your hotel is invested in keeping them safe in
the event of a fire.

4. PROTECTING YOUR
REPUTATION
• Knowledge of hospitality laws protects your business's
reputation. For example, hotels have to provide access to
disabled patrons, and if your business fails to comply, you
could face lawsuits, protests and negative publicity. Similarly,
discriminating against people on the basis of sex, race,
religion, disability status or age can draw unwanted negative
attention. Staff members should understand what constitutes
discrimination and should be aware of their legal obligation
to respect diverse workers.

5. HONORING AGREEMENTS
AND FAIR MARKETING
• Workers in the hospitality industry may be members of
unions, and some unions have specific agreements with
employers governing wages, working conditions and
benefits. Your staff needs to honor these agreements, as
well as any contracts you've signed with customers, vendors
and contractors. Similarly, hotels must adopt fair and honest
marketing practices. Deceptive marketing is illegal. For
example, if you advertise one price, then an employee
refuses to offer that price to a patron, you could be sued for
deceptive marketing.

6. PROPER RECORD-
KEEPING
• Hospitality businesses have to maintain a variety of records,
including tip sheets indicating the tips employees receive at
tip-out, employment agreements and payroll tax paperwork.
Employees who know and understand the law can keep
more accurate records and will be less likely to throw away
important documentation. Without proper record-keeping,
your business could get into trouble with a variety of
governmental agencies, over or underpay employees and
lose important tax deductions.