S
pring is around the corner—and with it, an influx of business for the hospitality industry. As we prepare for spring break, prom, graduation and family vacation season, we must remain cognizant that these peak times put hotels at significant risk for liability due to illegal alcohol sales and consumption. Whether it’s an in-room post-prom party, a wedding reception or a simple family vacation, there are a multitude of situations that put an operator at risk. The hotel industry is particularly susceptible because of the variety of avenues for access, including in-room minibars, room service, the hotel restaurant, in-room parties and open bars at special events. It doesn’t help that many guests and employees don’t have a clear understanding of the alcohol laws. For example, many parents believe they can absolve themselves from liability for underage consumption by renting a hotel room. Equally disturbing is the number of hospitality industry employees who believe there’s no liability for over-serving an intoxicated patron, as long as the patron is of legal drinking age and not driving. Misconceptions like these can jeopardize the entire company with a simple transaction.
Here are some tips to help protect your hotel from liability:
Restrict age to stock-controlled access cabinets: Don’t allow employees under 21 to restock or inventory the alcoholic beverages in a liquor cabinet.*
Implement a minimum age for renting a room: Restrict guest rentals to customers who are 25 or older. At a minimum, restrict guest rentals to customers who are at least 21.
Policy, training and monitoring of employees: The key to sustained alcohol compliance is to (1) have a strict, easy to understand, written policy regarding mandatory ID requirements and prohibitions against sales to noticeably intoxicated patrons; (2) reinforce your policy through quality comprehensive training; and (3) monitor your employees for compliance.
Impose strict ID checking requirements: IDs should be verified any time there may be access to alcohol, including but not limited to:
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when providing the guest with a key to the controlled access cabinet;
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when providing alcohol to a guest via room service (note: If the guest provides an ID that is questionable, the alcohol should not be left in the room with the guest while the employee takes the ID to management for verification);
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when providing alcohol to a guest at a manager’s reception or in the hotel bar or restaurant; and
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when observing an individual or guest in the hotel in possession of an alcoholic beverage.
The best practice is to ID everyone (this is required in some jurisdictions*). At a minimum, hotel and restaurant staff should ID anyone under the age of 40 to ensure that they may legally consume or purchase alcohol.
Restrict age to deliver alcoholic beverages to rooms: Don’t allow employees under 21 to deliver alcohol through room service.*
Establish a means of monitoring rooms for improper use: Particularly when in-room parties are common, like spring break or graduation, it may be prudent to hire an off-duty police officer to monitor floors for parties or call the police to break up a party. Some sources will encourage the eviction of guests who are intoxicated; however, this could potentially lead to liability for knowingly removing an intoxicated patron from a safe environment. The better practice is to remove the alcohol from the situation. To be clear, while it is not recommended that the guest be forcibly put on the street in a knowingly intoxicated state, hotel operators should not detain or restrain an individual against his or her will. If the guest chooses to leave, a call to the police may be appropriate to advise that there may be an unsafe driver on the road. By utilizing the police when illegal consumption is occurring, the hotel increases its protection by relying upon the judgment of a trained police officer.
Impose strict prohibitions against selling/providing alcohol to anyone who is noticeably intoxicated: Many employees have the false belief that it’s okay to serve a noticeably intoxicated guest who is over 21 as long as the guest won’t be driving. While this may provide some protection under the Dram Shop laws, this does not absolve the hotel from liability under other causes of action.
Observe local laws: Most states prohibit the sale or furnishing of alcohol between certain hours. In some states, the hours vary by local jurisdiction. Make sure your employees are familiar with the hours of sale and don’t sell or deliver alcoholic beverages via room service or otherwise during prohibited hours. In some states, an additional responsibility is placed upon hotel operators to program minibars to lock between the prohibited hours or notify guests of the restrictions. (Note: In some states, it’s also illegal to restock the controlled access cabinet during prohibited hours.) In addition, some jurisdictions have laws that prohibit certain practices such as providing a bottle of wine to less than two legally aged patrons at a time or providing discounts or complimentary alcoholic beverages to guests. Make sure that you and your employees are familiar with all of the alcohol laws that govern your establishment.
Understand your liability for employee conduct: Under most state laws, licensees and hotel operators are liable for the acts of their employees. In addition to civil liability, alcohol violations by managers and employees could result in disciplinary action against the hotel’s state and/or local alcohol license including fines, suspension or revocation. Remember, the alcohol laws prohibiting furnishing of alcohol to minors or intoxicated patrons apply to banquets and open bars as well.
Inform guests of relevant laws: Many violations could be avoided by educating guests and advising them ahead of time that the hotel will operate in strict compliance with the alcohol laws. As mentioned above, many parents believe that they can absolve themselves of liability by renting a hotel room for their underage child’s prom or graduation party. Consider having guests sign an acknowledgment that they can be held responsible for underage drinking or over-consumption on property they lease, including hotel rooms and event spaces. The acknowledgment should also affirm that the guest will take measures to ensure that there is no illegal alcohol consumption in the rented premises and contain an agreement to indemnify the hotel for damages resulting from any violations.
* The recommendation may be mandatory under some state laws.
Michele L. Stumpe, Esq. has been representing businesses for over 19 years. She is a partner at the law firm of Taylor English Duma LLP