California Lodging Industry Association

CALIFORNIA
Lodging
The Voice of the Independent Lodging Operator
Lodging
SUMMER 2002
Western
Lodging Show
Oakland – October 20-21
Bill Schneider
CNN Senior Political Analyst
Unity Luncheon Keynote Speaker
CALIFORNIA
Lodging
VOLUME 56, NUMBER 2
P.O. Box 15918
Sacramento, CA 95852-0918
(916) 925-2915
(800) 637-4664
Fax: (916) 925-0785
E-Mail: [email protected]
Web Site: clia.org
OFFICERS
Chairman of the Board
J.P. Patel
Best Western Colony Inn
Atascadero
Vice Chair
Jill Macdonald
Quality Inn
Eureka
Secretary
Sima Patel
Holiday Inn Express
Oakland Airport
Oakland
Chief Financial Officer
Terry Westrope
Sterling Hotels
San Luis Obispo
Immediate Past Chair
Carl Doughty
Pacific Plaza Hotels, Inc.
Oakland
EXECUTIVE STAFF
President/CEO
Rick Lawrance
Director—Administration & Finance
Joseph Davis
Director—Membership Services
Beverly Hook
California Lodging (ISSN 1094-1495) is published quarterly by
the California Lodging Industry Association (CLIA), 2020
Hurley Way, Suite 285, Sacramento, CA 95825 (916) 925-2915
or (800) 637-4664 (in California only) and Naylor
Publications, Inc. Subscriptions $20 annually (included in
CLIA member dues). Periodicals postage paid at Sacramento,
CA 95813.
Nothing contained in this publication shall be deemed to
constitute in any fashion whatsoever an endorsement by the
California Lodging Industry Association (CLIA) of any
information in this publication, and CLIA disclaims any and all
liability with respect to any use of, or reliance on, such
information. No information in this publication shall be
construed in any manner whatsoever as a recommendation of
any standard, or as a recommendation of any kind to be
adopted by, or binding on any person or entity. Nor shall any
information contained in this publication be deemed to
constitute in any fashion whatsoever an endorsement by CLIA
of any product or service advertised herein. The material set
forth in this publication is provided on an informational basis
only. CLIA is not engaged in the practice of any profession,
including, but not limited to, law and accounting, and nothing
in this publication should be relied on in lieu of appropriate,
competent professional advice.
POSTMASTER: Send address changes to:
California Lodging, P.O. Box 15918,
Sacramento, CA 95852.
Inside this Issue
CHAIRMAN’S REPORT
Reaping the Benefits of Membership—the CLIA Difference ................4
HEADQUARTERS REPORT
CLIA’s Gala Awards Dinner and Western Lodging Show......................5
Features
WESTERN LODGING SHOW 2002,
OAKLAND CONVENTION CENTER
CNN Senior Political Analyst Bill Schneider to be
Keynote Speaker at Unity Luncheon...................................................6
Schedule of Events/Educational Programs................................................6
WLS 2001 Photos....................................................................................7
Registration Form—Gala Dinner October 20th........................................8
EMPLOYMENT
How to Find a Good Employee ...............................................................9
Departments
LEGISLATIVE UPDATE
This Year, the Budget Is the Thing..........................................................11
SAFETY UPDATE
Are You Prepared for an Emergency? ....................................................13
LOOKING BACK
Vacancy—Price—and No Vacancy Signs..............................................18
CLIA Updates
INNKEEPING LAW
Starbucks Settles $18 Million Overtime Lawsuit ...................................15
Exempt Criteria for the Lodging Industry.............................................15
CLIA UPDATE
All the latest news about the lodging industry ......................................19
Index to Advertisers .......................................................................................22
Cover photo of Oakland City Center courtesy of the Oakland Convention & Visitors Bureau / Photo: Barry Muniz
California Lodging Disclaimer
The material set forth in this publication is provided on an informational basis only for the exclusive use of members of the California
Lodging Industry Association (CLIA). CLIA is not engaged in the practice of any profession, including but not limited to law and accounting,
and nothing in this publication, should be relied upon in lieu of appropriate, competent, professional advice. No information contained in this
publication shall be construed in any manner whatsoever as a recommendation, and CLIA disclaims any and all liability with respect to any use of,
or reliance on, such information.
Information provided herein is accurate and applicable to the best of CLIA’s knowledge at the date of publication. However, changes in state
law are always occurring and CLIA members are encouraged to monitor all information provided by CLIA on an ongoing basis. Please direct any
additional questions or concerns to the CLIA staff at: (916) 925-2915 or Helpline (800) 637-4664.
Published for:
The California Lodging Industry Association
P.O. Box 15918
Sacramento, CA 95852-0918
Tel: (916) 925-2915 or (800) 637-4664
Fax: (916) 925-0785
E-Mail: [email protected]
Website: www.clia.org
Published by:
Naylor Publications, Inc.
9806 Old Winery Place, Suite 6
Sacramento, CA 95827
Tel: (800) 873-4800 or (916) 363-1913
Fax: (916) 363-1934 or (800) 215-9404
www.naylor.com
California
Lodging
3
Summer 2002
©2002 Naylor Publications, Inc. All rights reserved. The contents
of this publication may not be reproduced by any means, in whole
or in part, without the prior written consent of the publisher.
Publisher: Gail E. Kelly
Editor: Brian Taylor
Advertising Manager: Kurtis Colbert
Advertising Representatives: Barbara Barnes, Shirley Lustan,
Diane Ricks, Cheryl Wild, Billie Jean Wright
Publication Director: Steven Seeber
Layout and Design: Joel Yap
Advertising Art: Aaron Harper
Published August 2002/LIN-Q0202SU/7812
CHAIRMAN’S REPORT
CALIFORNIA
LODGING
INDUSTRY
ASSOCIATION
CLIA BOARD OF DIRECTORS
OFFICERS
By J. P. Patel
Chairman of the Board
Reaping the Benefits of
Membership — the CLIA
Difference
I
recently took a few moments and calculated that my CLIA Membership saved my property — the Best Western Colony Inn Atascadero — more than $3,000 last year from
benefit programs in which we participate. That is more than a 400 percent return on my
CLIA annual dues investment and a substantial benefit to our bottom line. With low-cost
savings and/or commissions from our participation in such programs as the State Compensation Insurance Fund Workers’ Comp program, PAYMENTECH credit card processing, our new telecom program with USP, Pepsi-Cola beverage vending program, and
DiverseyLever chemicals and cleaning supplies, we are reaping financial returns, great
service, and professional programs for guests and our operations. I have compared CLIA
benefit programs with those offered elsewhere and I know that these are now the best in
the industry — programs tailored for the specific needs of California’s independent lodging property owners and operators.
When we combine the financial windfall to our bottom line with the effectiveness of
the CLIA government affairs and legislative advocacy programs — fighting for the rights
and needs of independent properties — we win again. CLIA is committed to the “highroad” with advocacy, joining forces with other like-minded associations in effective coalitions to FIGHT for Prop. 65 reform and to FIGHT against unscrupulous lawyers seeking
huge settlements for phantom violations. CLIA continues to be the leader in urging compliance with Prop. 65 while opposing unwarranted claims and settlements. Through other
coalition efforts, CLIA continues to FIGHT against uncontrolled minimum wage increases, workers’ comp rate increases, costly new UI benefits and the myriad other pending
legislation that is attempting to strangle small business.
And not only is CLIA strong and respected at the state Capitol; through our active participation and membership in the National Federation of Independent Business, we maintain a powerful presence in the nation’s capital without sending most of your dues
investment to Washington, D.C.
All of these bottom-line savings and services, when added to the invaluable advice and
guidance we receive from the CLIA HelpLine, FAX bulletins, alerts and this magazine,
Annual Buyers’ Guide, and custom publications and materials all serve to demonstrate the
CLIA difference. For my properties, the CLIA investment is the best one I make each
year. Professional service, commitment to our industry, unsurpassed benefit programs,
and a great return on investment. Take full advantage of the long list of CLIA member
programs that will pay you dividends and impact your bottom line.
California
Lodging
4
Summer 2002
Chairman of the Board
J.P. Patel
Best Western Colony Inn
Atascadero
Vice Chair
Jill Macdonald
Quality Inn
Eureka
Secretary
Sima Patel
Holiday Inn Express Oakland Airport
Oakland
Chief Financial Officer
Terry Westrope
Sterling Hotels Corporation
San Luis Obispo
Immediate Past Chair
Carl Doughty
Pacific Plaza Hotels, Inc.
Alameda
President/CEO
Rick Lawrance
Directors
Joe Dedio
Holiday Inn Costa Mesa
Costa Mesa
Doug Forzani
Merritt House Inn
Monterey
Bev Holthouse
Ridgemark Golf &
Country Club Resort
Hollister
Peter Kwong
Best Western Dragon Gate Inn
Los Angeles
Christopher Layton
Christopher’s Inn
Calistoga
Howard Mathews
Howard Mathews Lodging Broker
Discovery Bay
Chris Middleton
American Hotels, Inc.
Palo Alto
William O’Connell
Best Western Stovall’s Inn
Anaheim
Mahendra Patel
Menlo Park Inn
Menlo Park
Ramesh Patel
Sonora Days Inn
Sonora
John Reinacher
Historic Santa Maria Inn
Santa Maria
Dean Ruffing
TIC Hotels, Inc.
San Diego
Don Turner
Golden Bear Inn
Berkeley
CALIFORNIA
LODGING
INDUSTRY
ASSOCIATION
HEADQUARTERS REPORT
CLIA COMMITTEE CHAIRS
ASSOCIATE MEMBER COMMITTEE
Ed Bear
AutoClerk
(925) 284-1005
By Rick Lawrance
President/CEO
BED & BREAKFAST STEERING
COMMITTEE
Doug Forzani
Merritt House Inn
Monterey
(831) 646-9686
CLIA’s Gala Awards Dinner and
Western Lodging Show—
Oakland October 20-21!
CONFERENCE COMMITTEE
Mahendra Patel
Menlo Park Inn
Menlo Park
(650) 326-7530
EDUCATION & SCHOLARSHIP COMMITTEE
Bev Holthouse
Ridgemark Golf & Country Club
Hollister
(813) 637-8157
INTERNET/AUTOMATION COMMITTEE
John Manderfeld
Marin Management, Inc.
Sausalito
(415) 331-1061
LEGISLATIVE COMMITTEE
Bob Griffin
Sterling Hotel Corporation
San Luis Obispo
(805) 546-9388
MEMBER BENEFITS COMMITTEE
Chris Middleton
American Hotels Inc.
Palo Alto
(650) 321-4106
MEMBERSHIP DEVELOPMENT COMMITTEE
Howard Mathews
Howard Mathews Lodging Broker
Discovery Bay
(925) 634-1873
NOMINATING COMMITTEE
Carl Doughty
Pacific Plaza Hotels, Inc.
Alameda
(510) 523-5106
PUBLICATIONS & COMMUNICATIONS
COMMITTEE
John Reinacher
Historic Santa Maria Inn
Santa Maria
(805) 928-7777
W
ith the enormous success of our first two WESTERN LODGING SHOWS, the 2002
show is on track to be even larger and more informative for our lodging property
owners and operators. And WLS is the best opportunity for our valued associate
members — suppliers — to inform lodging members of new and needed products and services. Mark you calendar for October 20 and 21!
In conjunction with the WESTERN LODGING SHOW, we will again hold our CLIA
Annual Membership Gala Awards Dinner at the Oakland Marriott Hotel, on Sunday,
October 20th, at 7 p.m. In addition to the opportunity to socialize with your peers, celebrate
our industry, and enjoy delicious California cuisine, the Gala will feature special awards
presentations. CLIA’s two educational scholarships will be presented to worthy Californians
pursuing careers in the lodging and hospitality industry, and CLIA’s EXCELLENCE IN
LODGING AWARDS will be presented to outstanding owners and operators, and staff.
Other CLIA awards will include the PUBLIC OFFICIAL OF THE YEAR AWARD, which
recognizes distinguished public service and profound contributions to the California lodging and tourism industry, and the CHAIRMAN’S AWARD, which recognizes an outstanding member for exemplary dedication to our association. The festive evening will conclude
with not-to-be-missed musical entertainment. Dinner tickets are $75 per person — tables
of 10 are $725. Deadline for dinner reservations is October 11! The Gala Dinner and
WLS replace the CLIA Annual Educational Conference of previous years. Please see page
8 for registration information.
The 2002 WESTERN LODGING SHOW will include more than 200 exhibitors specializing in services specifically for California’s lodging property owners and operators. There
will be more than a dozen workshops and seminars tailored to the lodging industry during
the two-day show. The Show will also feature our Annual Unity Luncheon with CNN
Senior Political Analyst Bill Schneider as keynote speaker. And for the first time, we will
have a Sunday Brunch, with Oakland Mayor and former California Governor Jerry Brown
(invited). Admission to the WESTERN LODGING SHOW is FREE to CLIA members.
Be sure to attend and bring plenty of business cards with you. The WESTERN LODGING
SHOW will be held at the OAKLAND CONVENTION CENTER, Sunday, October 20,
from 1:30 to 6:30 p.m., and on Monday, October 21, from 9:30 a.m. to 2:30 p.m. WESTERN LODGING SHOW is co-owned by CLIA and the California Hotel & Lodging Association (CH&LA), and will operate in conjunction with the Asian American Hotel Owners
Association (AAHOA), and the AAHOA North Pacific Super Regional Conference.
Please plan to join us at the WESTERN LODGING SHOW! Stop by the CLIA
booth to say “hello” and join us at the CLIA ANNUAL MEMBERSHIP GALA
AWARDS DINNER. See you in Oakland!
California
Lodging
5
Summer 2002
Western Lodging Show
2002
SCHEDULE
OF EVENTS
SUNDAY - OCTOBER 20
10:00 a.m. - 11:00 a.m.
Exhibitor Seminar “How to Sell: Trade Show Tips”
11:00 a.m. - 1:00 p.m.
Lodging Franchise Power Brunch
(An opportunity for lodging property owners to
interact with franchisors)
1:30 p.m. - 4:30 p.m.
Western Lodging Show
FREE Educational Sessions
5:00 p.m. - 6:30 p.m.
Cocktail and Hors d’Oeuvres Reception
Exhibit Hall
CLIA’s Annual Gala Dinner - 7:00 p.m.
Marriott Hotel
Monday - October 21
9:30 a.m. - 12:00 p.m.
Western Lodging Show
Exhibits Open
10:00 a.m. 11:30 a.m.
Western Lodging Show
FREE Educational Sessions
12:00 p.m. - 1:30 p.m.
Industry Unity Luncheon
Keynote Speaker:
Bill Schneider-CNN Senior Political Analyst
1:30 p.m. - 3:30 p.m.
Western Lodging Show
Exhibits Open
2:30 p.m. - 3:30 p.m.
Western Lodging Show
FREE Educational Sessions
3:45 p.m. - 5:00 p.m.
“From the Slump to Success:
Marketing for Your Property”
Presented by Howard Feiertag - faculty member
with the Department of Hospitality and Tourism
Management at Virginia Polytechnic Institute,
Blacksburg, VA.
Attendance at the Western Lodging Show is free to all
CLIA members.
CNN Senior Political Analyst to be Keynote Speaker at
the Western Lodging Show Unity Luncheon
W
illiam Schneider, CNN senior political
analyst, will be our keynote speaker for the
Unity Luncheon during the Western Lodging
Show. As a premier political pundit and guru, he will
provide insights and analysis on November California
and national elections.
Recognized as one of the country’s leading political
commentators, he joined CNN in 1991 and is regularly
featured during CNN’s coverage of elections. He is also
a resident fellow at the American Enterprise Institute in
Washington, D.C., and a contributing editor to the Los
Angeles Times, National Journal and The Atlantic
Monthly.
The Washington Times referred to Schneider as “the nation’s election-meister,”
and The Boston Globe called him “the Aristotle of American politics” while Campaigns and Elections magazine called him “the most consistently intelligent analyst
on television.” In 1997, Washingtonian magazine named Schneider one of the 50
most influential Washington journalists.
Schneider co-authored “The Confidence Gap: Business, Labor and Government
in the Public Mind” with Seymour Martin Lipset. He has also written extensively
on politics and public opinion for The New Republic, The Atlantic Monthly, The
Washington Post, and other publications. Schneider is a frequent television commentator and featured speaker on public affairs, both in the United States and
abroad.
Schneider has a bachelor of arts degree from Brandeis University and a doctorate in political science from Harvard University, where he later taught in the
Department of Government. He has held an International Affairs Fellowship from
the Council on Foreign Relations and a National Fellowship from the Hoover Institution at Stanford University. From 1990 to 1995 he was the Speaker Thomas P.
“Tip” O’Neill Jr. Visiting Professor of American Politics at Boston College.
We are pleased to welcome Bill Schneider as our keynote speaker for the Western Lodging Show’s Unity Luncheon and we look forward to hearing his cuttingedge commentary just two weeks before the state and national elections. Schneider
has accepted our invitation to be our special guest at CLIA’s Annual Gala Dinner
scheduled for the evening of Sunday, October 20 at the Oakland Marriott.
Free Educational Sessions
•
•
•
•
•
Introduction to Hotel Technology
• Workers’Compensation
Family Business Issues
• Marketing for the Small Property
Credit Card Fraud
• Introduction to Hotel Technology
Internet Marketing
• B&B Marketing Issues
AAA Ratings
• Marketing Your Property
Attendance at the Western Lodging Show is free to all CLIA members.
California
Lodging
6
Summer 2002
Oakland Convention Center
Opportunity to
Win $1,000 Cash!
Free to all CLIA
Members
Drawings
and
Prizes
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t
p
e
c
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l
i
a
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7
Evenin
California
Lodging
Summer 2002
More Than a Dozen Free Workshops and Seminars
Oct. 20-21
2002 California Lodging Industry Association
Gala Dinner Registration
“An Evening of Excellence”
CALIFORNIA LODGING
INDUSTRY ASSOCIATION
Sunday, October 20, 2002
Oakland Marriott
CLIA’s 2002
Registration Deadline: October 11, 2002
✃
Mail registration & payment to:
CLIA Gala Dinner
P.O. Box 15918
Sacramento, CA 95852
Registrant Name and Title
• An elegant three-course dinner with
fine wines from California
• Presentation of CLIA’s 2002 Honors
and Awards
• Academic Scholarships
• Excellence in Lodging Awards
• Public Official of the Year
• Chairman’s Award
• Messages from CLIA’s Chairman
J.P Patel and President Rick Lawrance
• And special musical entertainment
Registrant Guest Name and Title
Business Name Day Phone
Mailing Address City/State/Zip
❐ Yes, I will be attending the Western Lodging Show
Please indicate your entrée selection(s)
from the following:
❐ Beef
❐ Salmon
❐ Vegetarian
Join us in our celebration of excellence!
Please complete the attached reservation form
and return it today.
REGISTRATION FEES
DINNER EVENT
Single ticket
$75
Host table for 10 $725
X $75.00 = $
X $725.00 = $
California Lodging Industry Association
PO Box 15918
Sacramento, CA 95852
Phone: (916) 925-2915
Fax: (916) 925-0785
(For tables, please include a list of attendees & their entrée selection)
VOLUNTARY CONTRIBUTIONS
CALIPAC
CLIA Scholarship Fund
$__________
$__________
TOTAL:
Join us at the Western Lodging Show on
October 20th & 21st
Oakland Convention Center
For room reservations, please contact the
Oakland Marriott at:
(510) 451-4000
Reference the Western Lodging Show for the
WLS rate ($118 + tax per night for single or
double occupancy)
Please make your hotel reservations by
October 1, 2002, to ensure the WLS rate
$ _______
If paying by credit card, fill out the information below.
❐ MasterCard ❐ VISA
Card Number
Cardholder’s Signature
“An Evening of
Excellence”
Expiration
Date
California
Lodging
8
Summer 2002
How to Find a
Good Employee
By Pam Tidmore
Recruiter (Adecco) — Sacramento, California
F
inding the right candidate takes
more than reading through
resumes! And once you have
“qualified” candidates you will then
want to consider the “fit” of candidates into your work environment,
which is often a much greater challenge.
Pre-Screen Candidates
The first step in determining potential candidates is to closely review
their resumes. Do they have a consistent work history or have they worked
in several establishments in a short
period of time? This can be very
telling about someone’s ability to
make a long-term commitment to a
company. Additional red flags include
illogical dates of employment or the
failure to state dates of employment
and/or gaps on a resume.
After narrowing down to a few
resumes, you will want to set aside
time to screen candidates over the
phone before inviting them in for a
formal interview. This provides an
excellent opportunity for you to confirm information on a resume, such as
hire dates, salary history, and reasons
for leaving past positions. It will also
be an opportunity for you to get to
know their personality, observe their
verbal skills, tone of voice, and how
clearly they process thoughts.
The “Live” Interview
Now that you have isolated a few
strong candidates for your open position and have invited them in for a formal interview, be sure to schedule
interviews during “down” time, and
plan to talk with qualified candidates
for a minimum of 30 minutes. You
have already qualified the candidates
… now you want to probe deeper into
their work history and personality, not
only to confirm they have the abilities
and skills to do the job, but how they
will “fit” into your work environment.
People want to hire people with
whom they feel safe and comfortable,
so take this opportunity to get to know
a candidate. Successful hiring decisions greatly depend on your interview
questions and instincts. You will discover things not on a resume, such as
verbal and nonverbal communication
California
Lodging
9
Summer 2002
skills, professional presence, strength
of character, and ability to problemsolve.
Following are some good interview
questions to consider:
• Try beginning an interview by saying, “Tell me about yourself.” The
candidates will demonstrate their
communication skills, enthusiasm
for the position, and their personality. It’s also an icebreaker; the more
relaxed people are in an interview,
the more forthright they may be
with information.
• “Why are you looking for a new
opportunity?” If a candidate
answers that the overtime is too
great, for example, and your position may frequently require overtime, you will want to probe
further.
• “What do you consider your most
significant accomplishment?” This
will provide the candidate with an
opportunity to discuss a personal
involvement in a work setting.
• “Have you ever accomplished
something you didn’t think you
could?” This question may help
you determine if someone is goal
oriented or hard working.
• “How do you handle pressure?”
Ask for an example of a stressful
situation.
• “Why do you want to work here?”
The answer to this question may be
an indication of how serious someone is about joining your company.
This also offers someone a chance
to summarize his or her work history and strengths.
• “What are your career goals?”
Hopefully, you will receive answers
that reflect loyalty to a company,
such as, “I hope to receive additional responsibilities and become more
of an asset to a company.”
• “Do you expect your current
employer to counter-offer should
you decide to give notice?” If the
answer is “yes,” then be prepared to
offer a little more money or
increase the benefit package appropriately should a counter-offer take
place. If the answer is “no,” ask
why.
Reference Checking
Reference checking can be challenging because many employers will
not share information outside of verifying dates of employment. Ask a candidate for a minimum of four
references, and be sure that one or
more is that of a co-worker. Typically,
it’s the direct manager who is not able
to share information, so you can sometimes probe more with co-workers.
Some questions to ask include the following:
• What do you think motivates
him/her?
• What qualities stand out professionally?
• What was his/her attitude towards
work in general?
• Did he/she get along well with
peers? Supervisors?
• If you had to find an area of
improvement, what would it be?
PARTNERS IN YOUR SUCCESS
We know these are difficult times in the hospitality industry, and
we understand how you feel. We are hotel owners ourselves, and
empathize with the day-to-day troubles you encounter.
Call the professionals with the experience and expertise to
produce the outstanding results you are seeking. Our team is
committed and resourceful; we have an impeccable track record
and can make a difference!
You can trust us with your property. Look no further.
Call us today at 888-397-7222 or
Visit our Website www.sterlinghotelscorp.com
California
Lodging
10
Summer 2002
Background Checks
If an employee will be expected to
handle money, valuables, or equipment, many companies run a background check and drug screen. There
are many firms that offer such services, and the pricing varies. You will
need the written consent of the potential candidate in order to run a background or drug test, and be sure to let
the candidate know that a job offer is
contingent upon a successful report.
The extra time spent on qualifying
and interviewing a candidate will definitely pay off. Whether the employment market is hot or cold, don’t rush
the prescreening and interviewing
process; it may mean the difference
between a good — or bad — decision.
LEGISLATIVE Update
By Ralph Simoni and Mike Belote
California Advocates, Inc.
This Year, the Budget Is the Thing
T
he annual adoption of the California state budget is always a tortured affair. The Legislature never
fails to miss the June 15 constitutional
deadline for budget adoption, and
when the process occasionally bleeds
into August, state employees and vendors stop receiving payment with predictable unhappiness all around.
Rarely is the state budget as important
for CLIA and other travel and tourism
businesses as this year, however. There
are two separate issues of critical
importance in this year’s budget debate
that all lodging operators should care
deeply about.
Before describing the two critical
issues, some context is necessary. Legislators and the Governor are grappling
this year with a budget shortfall of
truly unprecedented proportions. The
Governor’s Office has pegged the
deficit at $23.6 billion, roughly onequarter of the state general fund. For
perspective, the total general fund
appropriation for the entire UC and
CSU higher education systems, with
over 40 campuses, is approximately $6
billion. Therefore, if the systems were
eliminated in their entirety, as in, no
UC Berkeley, no UCLA, no Cal Poly,
the deficit would still exceed $17 billion. Producing a budget this year will
require not only cuts, but unquestionably “revenue enhancements,” and all
manner of borrowing, deferrals, and
other tricks as well.
Because roughly 40 percent of the
state budget is automatically set aside
under Proposition 98 to support public
education, the enormity of the problem
means that social programs are going
to bear the brunt of cuts. But the Legislature must look at every other area of
spending as well, and this is where the
first of the CLIA issues comes in. Last
year the state budget included approximately $7.4 million for tourism promotion, which was matched by selfassessments generated through the
Tourism Marketing Act. The state
money is now in peril.
There are strong arguments for state
spending in support of tourism. As
recently as 2000, over a million Californians were employed in tourismrelated jobs, and the industry generated
$4.8 billion in state and local taxes.
Moreover, there is strong evidence that
state-directed tourism promotion
results in quantifiable increases in
tourism, a solid return on investment.
And California’s level of tourism proCalifornia
Lodging
11
Summer 2002
motion is dwarfed by Florida and other
tourism-dependent states. Rather than
constitute some kind of “corporate
welfare,” then, California spending can
properly be characterized as smart
investment with bottom line results to
the state. But with a $23.6 billion hole
in the budget, and social programs facing cuts, there is a strong need to get
the message to legislators.
The second issue has ramifications
far beyond travel and tourism. As this
column is written, a bill is pending
which would supplant the role of the
Industrial Welfare Commission in setting the minimum wage with a scheme
which automatically indexes the minimum wage to changes in the U.S. Consumer Price Index. The bill is AB 2242
(Koretz), approved in the Assembly on
a strict party-line vote of 47 Democrats
in favor, and 30 Republicans opposed.
Why is this a budget issue? Because
proponents, for tactical reasons, moved
away from AB 2242 and placed the
automatic indexing language in the
budget itself. Apparently fearing a veto
of AB 2242 by Governor Davis if they
move AB 2242 to his desk, the proponents are attempting to enmesh the policy issue of minimum wage into the
fiscal debates over the budget.
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California
Lodging
12
Summer 2002
Are You
Prepared
for an
EMERGENCY?
E
mergencies in the workplace cannot be eliminated, but if you have
an emergency action plan in place
and have trained workers to respond
quickly and appropriately you can
optimize efficiency, relieve anxiety,
and in some cases save lives.
Management commitment and
worker involvement are essential to an
effective emergency action plan. The
action plan should be explained to
workers and reviewed whenever the
plan or responsibilities change. How
good is your emergency action plan?
Find out by asking yourself and your
workers the following questions:
General
• Is there a means of reporting emergencies and accounting for personnel before and after an incident?
• Who is the person responsible for
decision-making during emergency
conditions?
• Does everyone in the workplace
know the procedures to follow in
various emergency scenarios (e.g.
fire, explosion, earthquake, chemical spill or workplace violence,
etc.)?
• Do workers know the escape routes
and evacuation procedures including where to reassemble for a headcount or for further instruction?
• Do workers know where emergency supplies are located?
Medical
• Do workers know how to respond
in the event of a medical emergency?
• Are there workers trained in cardiopulmonary resuscitation (CPR)
and first aid?
• Does the worksite have first aid
equipment which corresponds to
the possible injuries workers may
encounter? (e.g. emergency wash
stations, personal protective equipment, oxygen tanks, ice packs, etc.)
• Are emergency response phone
numbers (fire department, ambulance, medical facilities, etc.) clearly posted where they can be readily
accessed?
In an emergency, an
immediate and educated
response can save
individual lives, your
business operation, and
thousands of dollars in
Fire
• Does the worksite have fire extinguishers that match the possible fire
hazards?
• Have workers practiced using the
fire extinguishers so that they are
aware of their operation and limitations?
• Have the fire extinguishers been
recharged within the last year?
(They must be tagged to indicate
the recharge date.
• Spills
• Does the worksite have absorbent
material that matches the quantity
and type of chemicals which could
spill?
California
• Do you have relevant personal protective equipment that would be
needed to respond to a chemical
spill?
• Have workers been properly trained
in how to safely respond to a chemical spill?
Lodging
13
Summer 2002
potential losses.
Once you have established your
emergency action plan, make sure
workers are trained and retrained in
the possible emergencies they may
encounter, the emergency procedures
they should follow, any first aid or rescue procedures, and in the location of
emergency response equipment and
phone numbers. In an emergency, an
immediate and educated response can
save individual lives, your business
operation, and thousands of dollars in
potential losses.
California
Lodging
14
Summer 2002
Misclassification of “Exempt
Managers” Proves Costly
Update from Paul Schechter, Employment Law Counsel, California Chamber of Commerce
Excerpt from the May 16, 2002 issue
Starbucks Settles $18
Million Overtime Lawsuit
Starbucks Corporation has agreed
to pay as much as $18 million to settle
a class-action overtime lawsuit under
California’s wage and hour laws.
The claim was filed on behalf of
over 1,000 current and former managers and assistant managers in California stores who were classified by
the company as exempt from overtime. While their jobs had management titles, more than half their
actual work time was spent performing non-exempt duties such as ringing
sales and maintaining their stores. As
a result, they did not qualify as
exempt employees and were entitled
to overtime pay for hours worked in
excess of eight per day or forty per
week. The Los Angeles Times reported that other California employers
have suffered similar outcomes within the past year. Recent settlements
have included Rite Aid Corp. ($25
million), Bank of America ($22 million), Pacific Bell ($35 million), and
Farmers Insurance Exchange ($90
million). Job classifications involved
in these cases have included man-
agers, assistant managers, engineers,
personal assistants, and claims
adjusters.
Small companies with few employees and companies that operate multiple small locations can learn a great
deal from the Starbucks case. In such
situations, the person in charge may be
called a manager, but the actual work
performed often mixes management
with operational duties. Close attention must be paid to the actual time
spent performing non-management
functions, especially during daily,
weekly, or seasonal slumps in business
activity. If the non-management functions consume more than 50% of the
employee’s time, the exemption from
overtime can be lost.
What Should You Do?
• Review both federal and California
definitions of the various types of
exempt status. There are some differences between Federal and state
requirements.
• Examine the job descriptions of
employees who are classified as
exempt to assure accuracy.
• Update job descriptions periodically and any time there is a change in
job duties or responsibilities.
California
Lodging
15
Summer 2002
• Periodically analyze the time
exempt employees spend performing specific tasks, with special
attention to employees who perform both exempt and non-exempt
duties. Involve the employee in this
analysis whenever possible.
Exempt Criteria
Excerpted from Guide to Wages
Hours, Working Conditions & Regulations for the Lodging Industry— California Lodging Industry Association
What is an exempt Employee?
An “exempt employee” is one who
can be paid a fixed salary without
detailed records of hours worked,
instead of being paid an hourly wage
and keeping a timesheet as must virtually all other employees.
In the lodging industry, the two
exemptions that might be available are
the “executive” exemption and the
“administrative” exemption. Summarized below are the minimum requirements to qualify under one of these
exemptions.
Executive Exemption
• The employee’s duties and respon-
sibilities must involve the management of the enterprise in which the
individual is employed or management of a customarily recognized
department or subdivision.
• The employee must customarily
and regularly direct the work of
two or more other employees. The
employee must have the authority
to hire or fire other employees or
make suggestions and recommendations as to the hiring or firing and
as to the advancement and promotion or any other changes or status
of other employees which are given
particular weight.
• The employee must customarily
and regularly exercise discretionary
powers. The employee must be
“primarily engaged in” duties
which meet the test of the exemption.
• The employee must earn a monthly
salary equivalent to no less than
two (2) times the state minimum
wage for full-time employment.
NOTE: “Primarily Engaged In” is
defined by the labor Commissioner as
more than one-half (1/2) of the
employee’s work time must be spent
engaged in exempt work. The activities constituting exempt work and nonexempt work shall be construed
consistent with federal regulations and
include all carrying out exempt functions. The work actually performed by
the employee during the workweek is
examined in addition to the amount of
time the employee spends on such
work. The employer’s realistic expectations, and the realist requirements of
the job.
CLIA recommends
EXPANDING FOR SUCCESS
adherence to hourly
In order to keep pace with the growing demand for his lodging
services Howard Mathews has added two experienced agents to
his company, Ramesh Patel and Martin Barnhart.
minimum wage and
◆ A combined total of over 75 years’ experience in real estate
lodging sales and operations
◆ Outstanding service and selling record
record keeping
requirements or,
wherever possible, use
of a written agreement
◆ Thorough knowledge of creative financing
with resident managers
◆ In house escrow and finance coordinator
◆ Let our experienced agents show you how easy it is to buy or
sell your motel or hotel
◆ Call for a free consultation or property appraisal
specifying estimated
hours worked.
Administrative Exemption
Howard Mathews
Ramesh Patel
Martin Barnhart
Howard Mathews & Associates
Phone: 925-634-2299
Fax: 925-634-1873
E-mail: [email protected]
Web: www.hma-lodging.com
THE LODGING BROKERAGE FIRM
California
Lodging
16
Summer 2002
An individual employed in an
administrative capacity must meet the
following five criteria to qualify for
the exemption:
• The employee’s duties and responsibilities involve either (i) the performance of office or non-manual
work directly related to management policies or general business
operations of his employer or his
employer’s customers; or (ii) the
performance of functions in the
administration of a school system,
or educational establishment or
institution, or of a department of
subdivision thereof; in work directly related to the academic instruction or training carried on therein.
• The employee must customarily
and regularly exercise discretion
and independent judgment.
• The employee must (i) regularly
and directly assist a proprietor or a
bona fide executive or administrative employee; (ii) perform under
only general supervision work
along specialized or technical lines
requiring special training, experience, or knowledge; or (iii) execute
under only general supervision special assignments and tasks.
• The employee must be primarily
engaged in duties, which meet the
test of the exemption. (“Primarily
Engaged In” is defined in the same
manner as in the Executive Exemption).
• The employee must earn a monthly
salary equivalent to no less than two
(2) times the state minimum wage
for full-time employment. (Same as
for Executive Exemption).
Compensation
• The employee must receive at least
two (2) times the state minimum
wage in effect at the given time.
• Lodging credits cannot be utilized
to meet this minimum income
requirement.
• Salary Basis: Under federal laws
(and new California enforcement
policies) the compensation to the
employee must be on a “salary
basis. ” This means the employee
must receive a predetermined
amount of compensation each pay
period, which is not subject to
reduction because of variations in
the quality or quantity of the work
performed.
• Cautionary Note! Deductions
From Salary May Destroy Exemption.
Remember also that taking deductions from an exempt employee’s pay
is very risky, and may destroy his/her
exempt status for purposes of federal
laws. Only the following deductions
may be made without losing the
exemption: (1) deductions for a full
day’s absence for personal reasons; or
(2) deductions for full days of
absence caused by sickness or disability (including industrial absences)
if the deduction is made in accordance with a bona fide plan, policy or
practice.
Many Deputy Labor Commissioners tend to view the “desk clerk”
functions, which make up a large portion of many innkeepers’ managers’
workday, as not meeting the first test
because they do not consider it to be
truly managerial or discretionary
work. This makes it very difficult for
an employer to show that more than
half of the manager’s time is spent
doing other more “managerial” things
such as supervising other employees,
interviewing, hiring and firing, advertising, and promotional work, and so
on. The consequences of having an
“executive” or “administrative”
exemption denied after years of paying a salary and keeping no time
records can be disastrous. For this
reason, CLIA recommends adherence
to hourly minimum wage and record
keeping requirements or, wherever
possible, use of a written agreement
with resident managers specifying
estimated hours worked.
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California
Lodging
17
Summer 2002
VACANCY – PRICE – AND
NO VACANCY SIGNS
We are beginning a new
feature with this issue of
California Lodging!
“Looking Back” will
highlight CLIA’s long
history with excerpts from
some of our newsletters
dating all the way back to
the 1940s. The issues and
concerns were very
different back then and, as
you will no doubt notice,
the language was quite
different too! We hope you
gain we call your attention to the bad effect of “NO VACANCY”
signs. We have ten callers a week at our office wanting to know
where they could build a Motel. Their only reason for thinking that
business is good comes from reading so many “NO VACANCY” signs along
the Boulevard. The “VACANCY” sign also has its bad effects. After a
tourist passes several of them he decides on a place to stop, inquires as to
rates and then immediately starts to put on the old squeeze forcing the
price down. He calls attention to all the “VACANCY” signs just passed up
and either you come down on your price or he leaves and tries another
place. These big “VACANCY” signs don’t bring you any business you would
not get anyway. They do,
however, bring you a lot of
cheap chiselers you would
not get otherwise. These
signs invite only the shoppers. Quality clientele look
for quality, not signs.
Members are urged to
take these signs down and
use just small ones on their
office doors. Price signs or
rates displayed in front of Motels are bad too. They only invite the person
who is looking for the cheapest kind of accommodations. Such signs degrade
your place. Take them down if you have any up, put up one that reads,
“OUR ACCOMODATIONS ARE THE BEST – OUR RATES ARE IN PROPORTION”. Such a sign would keep the chiselers out and attract the more
desirable trade. There are just as many people on the road willing to pay
your price as there are chiselers, but you will never see them with a sign
reading, “RATES $2.50 & UP” out in front of your court.
A
“Our Accomodations are
the Best – Our Rates are
in Proportion”
(From Motor Hotel Association of California Newsletter:
February 6, 1948 - Vol. #2-No. 7)
enjoy this little piece of
CLIA’s history...
California
Lodging
18
Summer 2002
CALIFORNIA LODGING
INDUSTRY ASSOCIATION
New Telecommunications Program
Announced — USP Communications
CLIA Board Chair J.P. Patel has
announced an all-new telecommunications program exclusively for CLIA
members. Our new partner, USP Communications, will provide you with
extremely low rates, prompt and accurate commission payments, and complete and accurate billing statements.
USP brings CLIA members nearly 20
years of telecommunications experience along with the highest commitment to customer service. USP is
successfully working with other state
and national lodging associations, providing communication services with
the specialized expertise we demand
in the lodging industry. We urge you to
review USP’s comprehensive offering
of services, rates and commissions
specifically negotiated for CLIA members. For more information, call our
USP contact, Michael Smith, at (800)
283-3210 or call the CLIA HelpLine
at (800) 637-4664.
New CLIA Staff Member —
Kathryn Arsenault
Kathryn Arsenault has joined the
CLIA staff as membership sales manager. Kathryn has an extensive background in customer service and inside
sales with Advanced Fibre Communications in Petaluma. Kathryn and her
husband have recently relocated to
Sacramento. We hope you will join us
in welcoming Kathryn to our CLIA
team.
CLIA Congratulates Members
Honored at AAHOA’s Annual
Convention
Sima Patel was honored as the Outstanding Woman Hotelier of the Year
by the Asian American Hotel Owners
Association (AAHOA) at its annual
convention, held April 24-26 at the
Gaylord Opryland Resort & Convention Center in Nashville, Tenn. This
award recognizes a woman hotelier
who has demonstrated strong leadership qualities and a commitment to
lodging excellence. Sima and her husband Pravin own the Holiday Inn
Express Hotel & Suites Airport located in Oakland. She currently serves as
secretary to CLIA’s Board of Directors.
Mahendra Patel received the Independent Hotel of the Year Award for
his Menlo Park Inn located in Menlo
Park. The award honors an independent hotel which sets a high standard
of excellence in quality, service and
guest satisfaction. Mahendra is currently a member of CLIA’s Board of
Directors.
Past CLIA Chairman Gary Hong
Honored as Outstanding Franchisee
Gary Hong was honored as the
West Coast recipient of the prestigious
President’s Award presented by GuestHouse International Franchise Systems for his GuestHouse Inn & Suites
in Santa Clara. The honor is based on
excellence in customer satisfaction,
quality assurance, marketing, and
operations. The winner of this award is
California
Lodging
19
Summer 2002
UPDATE
considered to be a “visionary and a
pioneer in the hospitality industry.”
Gary currently serves as chairman of
CLIA’s CALIPAC Committee and is
past-chairman of CLIA’s Board of
Directors, upon which he served for
some 15 years.
Turner Network Sales Honors
Charles Perkins with MHS
Recognition Award
Charles Perkins, Account Manager
Joe Dedio, General Manager
with the Excellence Awardwinning Holiday Inn Costa Mesa,
Joins CLIA’s Board of Directors
Joe Dedio, general manager
with the Holiday Inn Costa Mesa,
has recently joined CLIA’s Board
of Directors. Joe has spent 30-plus
years in the lodging industry,
beginning his career in his hometown of Binghamton, N.Y., and
later migrating to California, where
he managed the Holiday Inn San
Jose (11 years), Holiday Inn Anaheim, Ramada Main Gate, and the
Radisson San Diego before taking
over the Holiday Inn Costa Mesa.
Joe has also spent some time during his career managing hotel properties in Florida and “dabbling in
the restaurant business” in the San
Mateo area, where he owned and
operated a restaurant for several
years. The board looks forward to
welcoming Joe Dedio at the next
meeting to be held in Oakland during the Western Lodging Show.
with Turner Network Sales, has been
awarded the MHS Recognition Award
by the Educational Institute of the
American Hotel and Lodging Association (AH&LA). The award recognizes
suppliers who have promoted a high
level of competence and expertise in
their profession and their firm. The
MHS Award is the highest award that
a supplier can receive in the hospitality industry.
Turner Network Sales (TNS), the
domestic network distribution arm of
Turner Broadcasting System, Inc.
(TBS, INC.), has also named Charles
Perkins, Master Hotel Supplier (MHS)
account manager for their sales division.
Perkins currently serves on CLIA’s
Associate Member Committee.
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Updated Wages and Hours Guide
Thank you for supporting the
advertisers who helped make this
publication possible.
California
Lodging
20
Summer 2002
CLIA’s Wages & Hours Guide has
been updated to reflect the changes in
the law for 2002. This guide, created
by CLIA’s attorneys specifically for
the lodging industry, offers comprehensive answers to questions relative
to wages and hours issues. Order your
copy by mail, with a check, or with a
credit card by calling the CLIA
HelpLine at (800) 637-4664. Member
cost for the guide is $45/non-member
cost is $125. Both prices include tax
and shipping costs.
Products
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California
Lodging
21
Summer 2002
MARK YOUR
CALENDAR!
Please
join us!
Western Lodging Show
• Over 200 exhibitors
• Over 1250 attendees
• Free to CLIA members
Oakland Convention
Center and Oakland
Marriott Hotel
October 20-21
• Important educational
workshops and seminars
• Industry Unity Luncheon
Registration and
Exhibitor Information:
Phone: (916) 325-9603
www.westernlodging
show.com
Photo Courtesy of the
Oakland Convention &
Visitors Bureau /
Photo: Barry Muniz
Index to Advertisers
AMENITIES
Murry & Associates................inside back cover
BANKING SERVICES
Humboldt Bank Merchant Services...............14
BATH SPECIALTIES
American Bath Industries.....outside back cover
COMMERCIAL LAUNDRY SYSTEMS
PWS Commercial Laundry Systems...............20
COMPUTERS NETWORK &
CONSULTANTS
AutoClerk........................14, inside back cover
CONSTRUCTION
Huff Construction Co. ..................................10
LAUNDRY EQUIPMENT/SALES,
SERVICE, SUPPLIES, & TRAINING
Super Laundry............................................17
LODGING & HOSPITALITY INVESTMENT
SPECIALIST
Resort Amercia......................inside back cover
LODGING BROKERS
Howard Mathews & Associates.....................16
MAINTENANCE/HOUSEKEEPING
Oreck Commercial Sales ..............................21
MARKETING
Insignia ESG ...............................................22
CREDIT CARD PROCESSING
Paymentech..........................inside front cover
PEST CONTROL
Clark Pest Control .......................................21
Western Exterminator Company ..................12
FRONT DESK SYSTEMS & SOFTWARE
AutoClerk........................14, inside back cover
SOLID SURFACES
Pinnacle Distribution Concepts, Inc...............21
HOTEL & LODGING MANAGEMENT
Hotelowners, Inc. ........................................22
Sterling Hotels Corp. ...................................10
TELECOMMUNICATION
A-1Communication Systems.........................12
Strategic Marketing Group ..........................12
INSURANCE
Bipin Kapadia Insurance ........inside back cover
TELEPHONE SYSTEMS
Call Management Products ..........................21
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Ph.: (563) 422-3464 • Fax: (563) 422-5234
Question…Where are hospitality and lodging
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(949) 261-2360
California
Lodging
22
Summer 2002
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INSURANCE
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(408) 280-7878
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Residence: (408) 268-0193 • Fax: (408) 280-7555
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Ad Id# 114998
Ad Order# 127956
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