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Record Numbers of Hospitality Workers Call It Quits

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The great resignation is hitting employers nationwide, resulting in widespread staffing shortages in industries crucial to the US economy. Recently confirmed numbers from the US Department of Labor (DOL) show that 4.5 million Americans said goodbye to their employers in November 2021. The months of August, September & October display similar numbers. Over a million of the 4.5 million who left their jobs were in the hospitality industry.

 

A loss of one million workers in one-month equates to around one in 16 hospitality workers, approximately 6.4% of the entire leisure and hospitality industry. While workers in the sector quit for a myriad of reasons, many cited mental health concerns. According to Indeed, over half of the US workforce is expecting record levels of burnout, and those working in hotels and restaurants are no exception. A recent survey from HR insights provider Limeade indicates that 40% of US workers left their job due to burnout. For hospitality industry employees who made their exit, this rate jumped to 52%, only behind healthcare workers at 54%.

 

In a multi-year study published in 2017, Mental Health America concluded that the food and beverage industry had the highest rates of mental health issues compared to other industries. A 2015 study from the American Journal of Epidemiology revealed that tipped workers are at greater risk of depression, insomnia, and stress. Studies like these show that mental health issues in the industry have yet to be addressed and that the pandemic only exacerbated the current mental health crisis.

 

In most states, current workers’ compensation statutes surrounding mental health/PTSD are not helping solve the mental health crisis facing injured workers. Only a handful of states, including California, Massachusetts, and Virginia, generally cover mental health-related claims. In many states such as Alabama, Georgia, or Indiana, those making a claim for mental health reasons may only receive benefits if a mental injury is connected to a physical injury. By this definition, numerous states disqualify many mental health-related claims. Several states also narrow the eligibility pool for mental health-related workers’ compensation claims, such as Florida, Idaho, and Kentucky, only awarding these benefits for first responders. States like Maryland and South Dakota do not cover mental health claims at all, relying on state court opinions on a case-by-case basis.

 

Although mental health is being put into the national spotlight, workers’ compensation laws in many states have yet to follow. Legislative sessions in 2022 could produce more protections for injured workers, such as in New York, where a bill is being considered that would allow PTSD claims for all workers. Burnout in critical industries is increasing, and specific sectors such as hospitality and healthcare are at the most significant risk. Employees suffering from mental health issues stemming from their work should consider their state’s workers’ compensation laws regarding PTSD/Mental injuries to see if they qualify for workers’ compensation benefits.