Monthly Archives: April 2010

by | April 19, 2010 · 1:13 pm

Small Hotel And Hospitality Companies Can Qualify For Tax Credit Portion Of Health Insurance Bill

The tax credit’s value depends on a company’s size and average wage. Businesses with 25 full-time employees or more aren’t eligible for the credit. Neither are businesses that, on average, pay their employees more than $50,000 a year. The full value of the credit—35 percent of a company’s premium costs—is available only to businesses with 10 or fewer full-time employees and an average wage of $25,000 or less.

The full value of the credit increases to 50 percent in 2014, when small businesses and individuals will be eligible to purchase coverage through new state-based insurance exchanges. The tax credit could disappear after 2015, however. The law allows eligible small businesses to claim the credit from 2010 through 2013, and then for any two years after that.

(From a Portfolio.com article)   “…the owner of Hawthorne Auto Clinic in Portland, Oregon, expects to save $10,000 to $12,000 a year on his company’s health insurance costs thanks to the tax credit. He hopes to use that savings to give raises to some of his nine full-time employees. Houser hasn’t been able to increase their pay in recent years because of the rising cost of health insurance. He wants to “show that they’re appreciated,” he said.

Other small-business owners are just beginning to look at how health care reform will affect them. Many of the changes won’t go into effect for a few years, but the tax credit is available now. White House officials estimate that 4 million businesses qualify for this tax break, and they’re promoting it through Web chats, postcards to small businesses from the Internal Revenue Service, and workshops around the country.

Ever since the bill became law last month, “there’s been a real hunger” for information about what’s in the bill, said John Arensmeyer, CEO of Small Business Majority, an organization that supported the legislation. Arensmeyer’s organization has created a tax credit calculator that businesses can use to determine how much money—if any—they can save through the tax credits.

Read more: http://www.portfolio.com/business-news/2010/04/19/businesses-seek-answers-on-health-reform-tax-credit#ixzz0laBXx72m

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by | April 18, 2010 · 3:19 pm

OSHA Laws Protect Workers And Insure Medical Bills And Lost Time Are Covered

(From a 24-7PressRelease)  While most employers make worker safety a top priority, as mandated and regulated by the Occupational Safety and Health Administration (OSHA), on-the-job injuries do still happen. This is the reason for the government-mandated Workers’ Compensation program. Workers’ Compensation is designed to compensate victims of workplace injuries and illnesses.

In general, the purpose of Workers’ Compensations laws is to ensure that all the injured worker’s medical bills and lost time are covered in exchange for ceding the right to sue the employer for negligence. However, the system is not perfect and problems can arise that prevent employees from getting the compensation they deserve.

Denial of benefits

While many employers act in good faith in the best interests of injured employees, getting them their benefits promptly and completely, some work to undermine Worker’s Compensation claims. This happens for one simple reason–profits. Most large employers are required to carry Workers’ Compensation insurance to ensure that funds are available to provide benefits.

However, employers can save money on insurance premiums by reducing the amount of benefits they pay out, and their insurance company is happy to help them.

Injuries not caused by accidents

Many workers assume that Workers’ Compensation only applies in cases where the injury was caused by a specific accident. In fact, you may be eligible for compensation for a wide range of injuries and illnesses caused by repetitive motion, daily tasks, or the workplace environment.

For example, carpal-tunnel syndrome and asbestosis can be qualifying conditions.

If you are injured on the job or become ill from workplace conditions, be sure to follow all of your employer’s reporting procedures. Failing to comply with your employer’s policies may jeopardize your claim and give the employer legal grounds to deny your benefits.

http://www.24-7pressrelease.com/press-release/workers-compensation-in-palm-beach-146904.php

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by | April 17, 2010 · 6:58 am

Hospitality Industry Insurance: Finding The Right Insurance Broker With The Proper Insurance Products For Your Business Is Essential

(From a BusinessInsider.com article)   As an entrepreneur /executive one of the decisions you need to make is who to use to help you insure your company.  

 For some reason many people go to great lengths to do due diligence when selecting an attorney or accountant, but then spend thirty seconds deciding who should handle their insurance.  

Those people tend to do business with one (or more) of five types of people. 

So here are the five types you meet when you buy insurance – and how they could impact your company.

1. The Buddy  -  You’ve just set up your company and you need the basics – General Liability, Workers Comp, Property, etc.  The guy on your whiffle ball team, who also helped you with your homeowners insurance, says he can hook you up!  He has no experience working with other companies like yours, no relationships with insurers that are familiar with your industry.  But he’s a great guy and he assures you it’s a no-brainer. 

He sends you some applications to fill out. The questions seem odd, don’t really apply to your company – and most of all it takes a sh*$! ton of time for you to complete.

You fax them back, wait a couple of weeks and he surfaces with a policy and a bill.

The Result:   No thought went into anticipating what you may need next – like Errors & Omissions when you sign your first client contract (E&O is coverage that addresses claims that your product or service didn’t work properly or caused some kind of harm to someone), Directors & Officers when you get your first round of financing (D&O is basically coverage that protects the management team and board from claims that they mismanaged the company), global coverage when you open a sales office in the UK, etc. 

 The insurer you are with – let’s call them Quicksand Mutual – can’t provide any of those coverages. So when they come up, which will be sooner than you think, there will be a mad scramble to find these policies with different insurers, costing you time and more money.

You end up with a disjointed, patchwork insurance program with multiple insurers and no economies of scale by having everything in one package.  Since your buddy has no experience in your industry, he has no ability to provide services that may drive down your cost and reduce the likely hood of your having a claim. 

Now you can get away with the buddy’s insurance program for a while – but if you have a claim, or need advice on a contract or industry specific issue you will find out the hard way that he was not the right broker for you.

2. The Biggest Broker in the World!  Your company is the next Facebook.   You have some high profile VC board members.  You need to work with the Biggest Broker in the World! 

In fact, one of those board members knows one of the top executives from the Biggest Broker in the World! from his country club.

The Result:  The Biggest Broker in the World! handles the insurance for companies like Microsoft, Dell and Cisco.  Their best talent handles those accounts.  Their average account brings in $50,000 of revenue in both commissions and other fees. 

 All of your policies combined will throw off a total of twelve hundred bucks of income.  You will have a lot of questions and need a lot of hand holding.  Your company will change a lot over the next couple of years – hiring and firing, adding locations, new products, new client contracts, etc.  

The Biggest Broker in the World! assigns you to their D team – maybe a recent college grad, maybe a service center…..until you can be more profitable for them.  Like when you are about to have your IPO. 

You’ll wait won’t you?  And will you also please let them know when you are bigger, cause no one at their company even knows they insure you.

3. The Butcher, 4. The Baker, and 5. The Candlestick-maker …. You already bought a policy from the Buddy (for this segment let’s call him the Butcher).  Now you open an office in San Jose.  The Butcher doesn’t have a license in CA and suggests that you contact someone local out there.   He knows a guy from insurance school, the Baker. 

 You call the Baker and he is happy to set you up with a set of new policies for your California office! 

Next, you land that big round of VC money and the term sheet says you need Directors and Officers (D&O) insurance.  The Butcher and Baker both say they can do it for you but you’re not so sure.  This one seems a little more sophisticated.  The VC suggests a broker that they use, that specializes in D&O insurance, the Candlestick-maker. 

This guy drives his Benz to your office, tells you about how he handles the D&O insurance for the last four IPO’s in the country and assures you that you are with the right broker (NOTE: some brokers specialize in specific types of policies as opposed to industry segments where they can handle all types of insurance for that niche.  This happens a lot with D&O as the premiums are usually high, and there is little or no service work involved – so they throw off a lot of income to a broker.  Hence the Benz.). 

He sets you up with a state of the art D&O policy.  It is the most expensive insurance policy you have ever seen.

The Result:  You have three brokers. 

 None of these characters communicates with the other.  You have overlapping coverages and therefore are paying duplicate premiums. 

None of them feel like they are “in charge” of your account, so they don’t make any recommendations, review/update coverage or take much of an interest in your company. 

None of them realizes you have salespeople working from their homes in 6 States and now each State’s insurance department is fining you for non-compliance on Workers Comp. 

You have bills coming in from 3 agents, at least 3 insurers and your bookkeeper can’t figure out which bill is for which policy.  A new client contract calls for evidence (a certificate) of insurance.  Hmmmmm, guess you gotta call all 3.  You have a claim and are unsure which policy would cover it, so you call all 3 brokers, none of whom think their policy will cover it. 

But go ahead and send it in; the insurers will fight it out.  Ahhh, music to your ears while your company is getting sued…

What to do instead:  So, when it comes time to get insurance – maybe the bank, landlord or VC is requiring it – rather than just hiring anyone so you can check a box and move on, spend a little extra time selecting your broker.  It will pay dividends down the road.  Here are some questions you should consider asking a prospective broker:
  •  What other companies in my industry/like mine do you work with?
  • Can I call someone at those companies and ask about your work?
  • My company is poised for growth an we expect a lot of moving parts – and insurance is not our main consideration.  How will you help us stay on top of these changes so we don’t miss anything?
  • Do the insurers you work with specialize in my niche and offer industry specific coverage?
  • What special services do you provide that will help me save time, reduce my premiums and minimize the possibility of us having a claim?
  • How much time should I expect to spend on completing applications?
  • Can you describe your smallest and largest clients?
  • Do you handle all areas of insurance for companies like ours or just one type of coverage?
  • Do you have any group buying programs where I can leverage the power of a bigger group in my industry?

Read more: http://www.businessinsider.com/the-5-brokers-to-avoid-when-buying-small-business-insurance-2010-4?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29&utm_content=Yahoo%21+Mail#ixzz0lK2TIRmK

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by | April 16, 2010 · 6:53 am

Restaurant Food Safety: Foodborne Illness Outbreaks Will Force Restaurant Operators To Increase Use Of Disinfectants And Sanitizers

Food safety product demand in the foodservice sector will also be boosted by efforts on the part of restaurant operators to avoid the devastating impact of a foodborne illness outbreak on their image. In particular, such efforts will include the use of more efficient disinfection products, which will fuel demand for disinfectants and sanitizers used in restaurants and other eating and drinking establishments.

(From a PRLog.org article)     US demand for food safety products is forecast to rise 6.6 percent per year to $2.9 billion in 2014. Recent high-profile foodborne illness outbreaks, in addition to large product recalls due to food safety concerns, will continue to fuel demand, as the prevention, identification and traceability of food contaminants will remain key issues for consumers, food industry participants and legislators. Demand for food safety products will also be boosted by the adoption of more stringent food safety regulations. For instance, projected increases in the frequency of food plant inspections will raise demand for diagnostic testing products.

Advances will also be supported by growth in food and beverage production, and expansion in the foodservice industry, as food processing plants and foodservice establishments constitute the largest markets for food safety products. Sales of smart labels and tags will exhibit the fastest gains, driven by the rapid adoption of new smart label technology in food packaging.

http://www.prlog.org/10627949-demand-for-food-safety-products-in-foodservices-industry-available-through-bharatbook.html

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by | April 15, 2010 · 4:47 am

Food Safety: Costco To Test Meat Supplier Trimmings For E.Coli Prior To Grinding Into Hamburger

And on the industry’s own initiative, Costco reached a new agreement with a major meat supplier that would allow Costco to test that company’s shipments of trimmings for E. coli before they are ground into hamburger, which Costco believes is a critical food safety step, and one that few other companies perform.

(From a DinersJournal Blog posting)  The Secretary of Agriculture, Tom Vilsack, responded to the article by saying what happened to Stephanie Smith — the now 23-year-old dance instructor who became paralyzed after eating a hamburger tainted by E. coli — was “unacceptable and tragic,” and vowed to press on with initiatives to reduce the incidence of pathogen contamination. Several pieces of legislation were introduced in Congress, including a bill by Senator Kirsten Gillibrand of New York that would require hamburger grinding companies to test for deadly E. coli. And on the industry’s own initiative, Costco reached a new agreement with a major meat supplier that would allow Costco to test that company’s shipments of trimmings for E. coli before they are ground into hamburger, which Costco believes is a critical food safety step, and one that few other companies perform.

http://dinersjournal.blogs.nytimes.com/2010/04/13/q-a-with-michael-moss-round-one/

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by | April 14, 2010 · 5:41 am

Hospitality Industry Risk: “PCI Security Standards” Should Be Implemented By Hotels And Restaurants To Protect Customer Data

The PCI Security Standards Council will enhance the PCI DSS as needed to ensure that the standard includes any new or modified requirements necessary to mitigate emerging payment security risks, while continuing to foster wide-scale adoption.

(From a PCIsecuritystandards.org posting)   The PCI DSS, a set of comprehensive requirements for enhancing payment account data security, was developed by the founding payment brands of the PCI Security Standards Council, including American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. Inc. International, to help facilitate the broad adoption of consistent data security measures on a global basis.

The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. This comprehensive standard is intended to help organizations proactively protect customer account data.

The PCI Security Standards Council will enhance the PCI DSS as needed to ensure that the standard includes any new or modified requirements necessary to mitigate emerging payment security risks, while continuing to foster wide-scale adoption.

Ongoing development of the standard will provide for feedback from the Advisory Board and other participating organizations. All key stakeholders are encouraged to provide input, during the creation and review of proposed additions or modifications to the PCI DSS.

The core of the PCI DSS is a group of principles and accompanying requirements, around which the specific elements of the DSS are organized:

Build and Maintain a Secure Network

Requirement 1: Install and maintain a firewall configuration to protect cardholder data
Requirement 2: Do not use vendor-supplied defaults for system passwords and other security parameters

Protect Cardholder Data

Requirement 3: Protect stored cardholder data
Requirement 4: Encrypt transmission of cardholder data across open, public networks

Maintain a Vulnerability Management Program

Requirement 5: Use and regularly update anti-virus software
Requirement 6: Develop and maintain secure systems and applications

Implement Strong Access Control Measures

Requirement 7: Restrict access to cardholder data by business need-to-know
Requirement 8: Assign a unique ID to each person with computer access
Requirement 9: Restrict physical access to cardholder data

Regularly Monitor and Test Networks

Requirement 10: Track and monitor all access to network resources and cardholder data
Requirement 11: Regularly test security systems and processes

Maintain an Information Security Policy

Requirement 12: Maintain a policy that addresses information security

To further the adoption of the PCI DSS, the PCI Security Standards Council defines credentials and qualifications for QSAs and ASVs. The PCI Security Standards Council also manages a global training and certification program for QSAs and ASVs, and will publish a directory of certified providers on this Web site.

https://www.pcisecuritystandards.org/security_standards/pci_dss.shtml

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by | April 13, 2010 · 5:17 am

Hotel Industry Theft: Criminals Target Small Hotel Flat-Screen TV’s To Steal

Alpharetta police said the thieves, a man and a woman, will rent a room to steal the televisions. They pay with cash and use a fraudulent driver’s license for identification.

(From a CBSAtlanta.com article)   A couple is stealing flat screen televisions from Alpharetta hotels, police said Thursday.

“It’s very frustrating because we put a lot of money and energy into the hotel, and somebody just checks in and decides to take it,” said Tracey Cox.

Cox is the manager of a Hampton Inn in Alpharetta that had two flat screens stolen this past weekend.

Alpharetta police said the thieves, a man and a woman, will rent a room to steal the televisions. They pay with cash and use a fraudulent driver’s license for identification.

Just hours before Cox’s hotel was hit, the thieves targeted another Hampton Inn in Alpharetta stealing three televisions. Alpharetta police said they’re also investigating if the couple is responsible for similar burglaries in other area cities.

The man and woman’s images were clearly captured on hotel surveillance cameras. Police have identified the woman and are looking for her. However, they’re asking for the public’s help identifying and locating the man.

“We want to prevent this from happening at other hotels, and we want to get the bad guy, because that’s a crime,” said Cox.

http://www.cbsatlanta.com/news/23090169/detail.html

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by | April 12, 2010 · 1:23 pm

Hospitality Industry Food Safety: New “HACCP Food Safety Employee Manual” From Food Safety Expert Tara Paster Focuses On Food Safety And Preparation

(From a PRWeb.com article)  Deadly outbreaks of foodborne illnesses over the past few years have focused increased attention on food safety and preparation. The Obama Administration has announced new steps to upgrade the US food safety system, with a public health-focused approach based on prevention, strengthened surveillance and enforcement, and improved response and recovery. In addition, the Food and Drug Administration recently released its updated Food Code, a model code and reference manual for the state and local agencies that regulate more than one million restaurants, retail food stores and vending and food service operations.
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These recent changes are the focus of food safety expert and Pearson author Tara Paster’s new training guide for the food service industry, The HACCP Food Safety Employee Manual, 2nd Ed. The book debuted today at the 12th Annual Food Safety Summit in Washington, D.C., the largest and most established trade show focusing on food safety, quality assurance and food security.

Designed for workers in casinos, restaurants, schools, the military and retail outlets, The HACCP Food Safety Employee Manual is a user-friendly guide to the Hazard Analysis and Critical Control Point (HACCP) training processes to prevent foodborne illness in retail food service. The second edition incorporates the new FDA Food Code guidelines to assist the industry in prioritizing their food safety interventions and inspections. Participants receive a Basic HACCP Certification upon completing the course.

http://www.prweb.com/releases/2010/04/prweb3858584.htm

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by | April 9, 2010 · 6:48 am

Hospitality Industry Insurance: Employment Practices Liability Insurance Protects Employers From “Workplace Bullying” Claims

Employers are turning to ’employment practices liability’ insurance to protect against bullying-type claims (harassment, wrongful termination, etc.) for which companies pay $5,000 to $100,000 in annual premiums with deductibles of $10,000 to $25,000. The median compensation in wrongful termination cases topped $200,000 in 1995, up 45% from the year before.

Workplace bullying includes all types of interpersonal harassment and psychological violence. Few are blatantly illegal; most are not. It crosses all organizational levels, from the top down and from the bottom up. Unchallenged bullying poisons the workplace, undermines productivity, and contributes to a skyrocketing exposure to risk.

The anguish of bullied employees forces them to pay with their health–both psychological and physical–that affects them, their co-workers and their families. It undermines a loyal employee’s commitment to the organization, while eroding personal well-being.

Relationships among employees, and between management and staff, are strained more than ever because of time and productivity pressures. Pressure, to some, justifies the mistreatment of others. When mistreatment goes unchallenged, even passive individuals are capable of explosive rage that can result in headline episodes of workplace violence.

http://www.workplacebullying.org/employers.html

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by | April 8, 2010 · 6:33 am

Hospitality Industry Legal Issues: There Is No Clear Legal Guidance For Hotel And Restaurant Operators If They Suspect A Guest Or Patron Is Likely To Commit Illegal Acts

“A proprietor of an inn, tavern, restaurant, or like business is liable for an assault upon a guest or patron by another guest or third party where the proprietor has reason to anticipate such an assault and fails to exercise reasonable care to forestall or prevent the same.”

(From a Volokh.com posted article)   “The duty of a proprietor of a tavern or inn to protect his patrons from injury does not arise until the impending danger becomes apparent to him, or the circumstances are such that a careful and prudent person would be put on notice of the potential danger.” 

Other jurisdictions have applied the landowner-invitee analysis to determine whether a university has a duty to protect students from the criminal actions of third parties. In analyzing the issue, [most of the courts] relied upon Restatement (Second) of Torts § 344 (1964), which provides:

“A possessor of land who holds it open to the public for entry for his business purposes is subject to liability to members of the public while they are upon the land for such a purpose, for physical harm caused by the accidental, negligent, or intentionally harmful acts of third persons or animals, and by the failure of the possessor to exercise reasonable care to 

“(a) discover that such acts are being done or are likely to be done, or

“(b) give a warning adequate to enable the visitors to avoid the harm, or otherwise to protect them against it.”

The general rule is that a landowner has no duty to protect an invitee on the landowner’s premises from a third party’s criminal attack unless the attack is reasonably foreseeable. Prior similar acts committed upon invitees furnish actual or constructive notice to a landowner. A university owes student tenants the same duty to exercise due care for their protection as a private landowner owes its tenants.

http://volokh.com/2010/04/06/what-should-landlords-do-if-a-tenant-is-accused-of-a-violent-crime/

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