I think an answer to this question requires a separate answer to separate parts of the question.
For starters, you need to keep in mind that running a hotel is all about appearances. Not only about a nice view and clean sheets, but definitely also on friendly, helpful staff.

Is it OK to ask employees to only talk English around other staff or guests? Yes, I think that's quite OK. Especially with the reason for it: making sure the guests feel welcome and to ensure them there is no gossiping about them in a language they don't understand. It also makes staff (even cleaning staff) much more approachable if you know they talk and understand English.
As for the latin names: That’s way more of a borderline issue. I assume that regular US residents are capable of understanding and pronouncing latin names. In that case, there is no real reason for staff to change their names, other than to hide their foreign identity. So I would call this one out of line.

However, there can be circumstances where changing your name is very appropriate. I’ve been to China twice, and all guides and tourist-related workers have English sounding names next to their Chinese name, simply because that Chinese name is unpronounceable for us. In that case it is simply practical to have a second name, which your tourists will understand. I don’t think that’s the case here though.

Overall, I think it is very reasonable to adapt to your guests, in an effort to be as hospitable as possible. The name-change is probably one step too far though. However, calling this racism is way overboard also, and probably says more about the clientele than about the hotel owner. A law against this is way overdone. If many would object to it, the hotel would simply go bankrupt. There is no law needed for that, just common sense from its visitors.

I do not think it was right to make thim change their names. As for the speaking spanish, if it was in America, the USA I do not feel it was very wrong. Most people have to do that because the few americans left that do not speak spanish find it a little distasteful to walk in somewhere in the usa and be looked at as if they are stupid because they only know their language. I have done it many times going to dinner or the movies etc and the person helping me knew no english, and got mad at me because I didn't know spanish. I am sorry but I am a firm beliver in speaking the language of whatever country you are in. That was very wrong of him to say change your name but if your in the USA, you should speak English in a business :)

Let me begin by stating that I am not racist myself. I do, however, have some perspective on this issue due to the fact that I have worked with Spanish-speaking individuals personally. I would also like to note that I have some very close friends who are Hispanic and have respect for the Hispanic population.

I agree that the above mentioned situation is unethical, but I think legality depends upon your type of business, the area where the business is located and if the business owner(s) and customers know Spanish or not.

1) Type of business: Would employees who know English but choose to speak only Spanish be detrimental to the conduction of business or possibly raise safety concerns to customers (i.e. someone shouting "fire" in Spanish but not in English when the smoke alarm is broken)? Is a translator readily available for employees and customers who only speak Spanish? This can, therefore, be a matter of personal safety and liability for the employees and customers.

2) Area where the business is located: Cities with larger Spanish speaking populations may find it beneficial to have an employee who can communicate well with the customers of the business. Employees and customer in other areas may not readily recognize the language.

3) If a business owner does not know Spanish he can have trouble distinguishing detrimental or even threatening remarks made by employees about him/her and/or his/her business/customers. The same is true regarding the customer understanding of the Spanish language.

I also think that the owner should allow them to go by their correct names. Every human being has a right to be called by their real name. This should also be legal because real names may be an important part of functioning in society and are a basic human right.

This situation could very well be viewed as racist, depending upon your vantage point, but at the same time the official language of the United States is still English and the owner may have a genuine concern for himself (i.e. his personal safety and reputation), his customers, and his business, so I can see both sides on this one.

I think it's just as bad as racial discrimination and yes he should be punished. If he doesn't want Spanish people working for him (or any Spanish names to be part of his "look"), he shouldn't hire them. However, the Spanish-Mexican workforce drives hospitality. I'm not Hispanic, but I'm offended by his actions. I definitely think he should be prosecuted for unethical practices and racial discrimination. It's detestable as far as I'm concerned. He should support his workers and be able to put out any fires that arise from suspicious and most likely paranoid patrons like any other manager. He should not turn to his workers, the people that keep his business running smoothly, and demand they turn into someone they are not.

I was reading that article earlier today and another one about it too. I agree with requiring employees to only speak English in the workplace. I think this helps with things like employees and customers from worrying about whether or not people are talking about them behind their backs and it also helps with making sure there's no miscommunication, etc. Even though I agree that speaking English in the workplace is best, the man's reasoning for it was just silly. Talk about insecure.

As for making them change their names though: ridiculous!

Quite frankly, the guy ought to know better, and hope one of the Hispanic or Mexican employees there decides to sue his rear end. There is a strong Mexican heritage and culture in that part of New Mexico (not too far from where I live) and I would think the Mexican/Spanish names would actually 'add' to the culture and experience of the hotel he's renovating.

I agree that employees, especially in a hotel, should speak English. I also don't see too many people having a problem with Spanish speaking employees. It's basically pretty normal in most parts of the country for people to be speaking a variety of languages, especially Spanish. As an employer, though, if he feels it's better than I don't think there's a problem with it and I don't think the employees did either. His reasoning though was because he thought they would be talking about them, needless to say people can still talk about you in English...and will.

Asking someone to change their name though is ridiculous. Some people are very proud of their names, of the history, of the family they are a part of and of their heritage. Some people don't care.

I have an American name. If, for instance, I were asked to change it to be more Asian, like Sue Lee or something I would be offended and would feel that the request would be a bit racist.

Besides the fact that it's not fooling anyone. Do you honestly think people in that area believe all of the Hispanics have American names? Especially considering the possible accents.

I think it's a bit racist, and sounds a bit like someone feeling a bit God like and full of himself.