Dozens of full-time workers at the Graduate Palo Alto say they were suddenly cut loose in April, only to be invited back later as temporary contractors with lower pay and no benefits. The layoffs swept through kitchen crews, housekeepers, servers, engineers and other nonmanagerial staff right as the spring rush hit, including Stanford commencement season. The move has rekindled long-running anger over the building’s conversion from the old Hotel President and the tenant displacement that came with that revamp.
Former waitress Helen Cane said she got a phone call on April 14 telling her that her job was terminated on the spot. She said co-workers learned the same news while they were still on shift. According to staff, management suggested the restaurant might shut down, but the dining room later reopened with temporary workers running the show, a twist that left laid-off employees confused and furious about losing stable jobs and benefits. General Manager John Reynolds declined to comment and Hilton did not respond to multiple requests for comment, as reported by San José Spotlight.
Hotel background and where it sits
The Graduate Palo Alto is a 100-room Graduate by Hilton property at 488 University Avenue, a restored version of the old Hotel President that reopened in early 2023. The hotel’s own listing highlights a rooftop bar and two dining concepts and pitches the property as a Stanford-adjacent boutique spot. Developer materials describe the project as a historic restoration of the President Hotel and emphasize its downtown Palo Alto location. Both Hilton and AJ Capital Partners highlight the building’s past and the scale of the overhaul.
Workers’ pushback
Since the April cuts, former employees say they have been handing out flyers to guests and pressing city leaders to explain why steady positions were swapped for short-term contracts. Several ex-workers took their concerns to the microphone at a recent City Council meeting and urged council members to lean on hotel management and its private-equity backers for answers. Some of the laid-off staffers say local community groups have helped them apply for unemployment and search for new jobs.
What the law allows and where employees might push back
Labor experts told San José Spotlight that the layoffs likely fall within California’s at-will employment rules and that the hotel’s size probably kept it below the thresholds that trigger state WARN notice requirements. The outlet quoted Stanford labor attorney Bill Gould IV, who said employers are generally allowed to end at-will jobs, but that workers could have legal options if they can show the cuts were discriminatory or aimed at shutting down union organizing.
What’s next
Former employees say they are working with UNITE HERE Local 19 and local advocates to find new work and keep pressing the hotel and its managers for answers. City officials have heard their public comments, and workers say they plan to keep demanding transparency as the summer travel season brings more visitors into downtown Palo Alto. So far, the hotel has not offered a public explanation for its staffing decisions beyond declining to comment.
