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Still without guests, hotels will have to pay employees who were left without work due to the coronavirus in New York

Still without guests, hotels will have to pay employees who were left without work due to the coronavirus in New York

Times Square looks unrecognizable without pedestrians

Photo: Andrés Correa Guatarasma / Courtesy

Dozens of NYC hotel owners will have to pay $ 500 million in severance pay and insurance to employees who lost their jobs due to the coronavirus pandemic.

Will the payment be the largest of its kind, according to a report. Tens of thousands of industry employees will now benefit from an arbitrator’s ruling in September, which requires approximately 75 hotel owners to turn off compensation and health care benefits for its workers, The Wall Street Journal reported.

The pay is the highest among hotels and workers in NYC history and probably in the entire country, once compensation figures are finalized, according to the report.

“Continuing medical care in the context of a pandemic is critical,” declared the president of the labor union Hotel Trades Council (HTC), Rich Maroko. “These indemnities are a necessity for the workers of our hotel after the federal supplements ended last summer. “

The ruling comes as the hotel industry has been devastated by the pandemic, since the tourism and business travel have plummeted, Broadway shows are suspended until at least May 2021 and restaurants and museums are subject to limited capacity restrictions.

At least a hotel owner is contesting the ruling while others have started issuing payments, according to the report.

At the beginning of the pandemic, many hotels were kept afloat with the help of federal assistance loans, but with a second round of stopped assistance, large shelters like Hilton Times Square and Roosevelt Hotel have announced that they will be closing permanently, reported the medium.