Monthly Archives: October 2012

by | October 11, 2012 · 6:11 am

Hospitality Industry Legal Risks: Nevada Hotel Settles Employment Discrimination Lawsuit With Justice Department For $49,000; Must Implement New Employment Eligibility Verification Policies

“Employers may not treat authorized workers differently during the employment eligibility verification and reverification process based on their citizenship status or national origin,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

Under the settlement agreement, Tuscany will pay $49,000 in civil penalties to the United States and full back pay to a victim.  In addition to corrective action already taken, Tuscany also agrees to implement new employment eligibility verification policies and procedures that treat all employees equally regardless of citizenship status, conduct training of its human resources staff on their responsibilities to avoid discrimination in the employment eligibility verification process, and be subject to reporting and monitoring requirements.

The Justice Department today reached an agreement with Tuscany Hotel and Casino LLC in Las Vegas resolving a lawsuit alleging that the company discriminated in the employment eligibility verification and re-verification process.

The Immigration and Nationality Act (INA) requires employers to treat all authorized workers equally during the hiring, firing and employment eligibility verification process, regardless of their national origin or citizenship status.

The department’s case, filed on May 11, 2012, alleged that Tuscany treated non-citizens differently from U.S. citizens during the employment eligibility verification and reverification process.   The complaint alleged the casino required non-citizen employees to provide more or different documents or information than it required from citizen employees during the initial employment eligibility verification process.  According to the complaint, the company then used the documents or information it gathered to impose improper document requests on non-citizens during the reverification process as a condition of continued employment.
The complaint further alleged that the casino subjected non-citizen employees’ documents to a heightened review process by senior human resources representatives that was not applied to documents presented by U.S. citizens.

For more:  http://www.opposingviews.com/i/society/drug-law/justice-department-settles-lawsuit-against-las-vegas-casino-unfair-documentary

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by | October 10, 2012 · 6:28 am

Hospitality Industry Property Risks: South Dakota Hotel Rebuilt After Fire Started By "Cigarette On Couch" Causes $160,000 In Damage

“…Investigators have determined that the fire was started by a cigarette on a couch in the second floor room of Bradley Morris, the tenant who died…The fire caused extensive smoke damage, however, with the second floor most affected…It took nearly three months for workers from Service Master to clean all of the building, a job that included painstaking work on the metal framework of the suspended ceiling…”

The heat of the fire was intense enough to burst the windows of the apartment, but the construction of the building helped keep the blaze contained, Chadron Fire Chief Pat Gould told The Chadron Record shortly after the fire. The fire burned through the ceiling of the apartment, but its spread was limited by the building’s brick walls and the lath and plaster construction of the upper levels.

The clean up job also included replacing every carpet and smoke alarm in the building, repainting, and completely reworking the apartment where the fire started, the Bagneschi’s said.

The work ended up costing some $160,000, a figure doesn’t count the time Bagneschis put into the project themselves. “It’s been quite a chore,” said Larry.

For more:  http://rapidcityjournal.com/news/local/communities/chadron/fire-damaged-blaine-hotel-completely-restored/article_3024cb98-1238-11e2-9cad-0019bb2963f4.html

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by | October 9, 2012 · 6:32 am

Hospitality Industry Employment Risks: High Hotel Employee Turnover Rates Increase Operating Expenses While Lowering Customer Service Experience And Guest Loyalty

For more:  http://www.hospitalitynet.org/news/154000320/4058028.html

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by | October 8, 2012 · 6:24 am

Hospitality Industry Property Risks: Missouri Motel Fire Caused By Guest Smoking In Bed; Several "Oxygen Tanks" Were In Room

“…The man (was) on oxygen, and McConnell says there were several oxygen tanks in the man’s room…Officials investigating the cause of the blaze told KSPR News the fire was indeed accidental. The fire started near the bed, and officials had warned the man before about smoking in bed…”

Fire officials say a fire that killed a man in a west Springfield motel was accidental in nature. The call to fire crews was made around 2:15 Monday morning. The flames were coming out of one room of the Cloud Drift Motel, 3601 West Sunshine Street, west of West Bypass.

An attempt was made to rescue a man who was staying in the room, but the flames were too high for anyone to get inside. Brookline Fire Chief Larry McConnell says his crew is familiar with the man who died in the fire. He says they have responded to medical calls for him.

Once tankers arrived, the fire was put out quickly. Fire crews from Brookline and Willard responded. The Greene County Sheriff’s Department is assisting with the investigation. No firefighters were hurt. The room where the victim was staying is damaged heavily. The unit next door was also burned, but no one was there when the fire happened.

For more:  http://www.kspr.com/news/kspr-fatal-fire-one-man-is-dead-after-a-fire-in-west-springfield-20121008,0,6937042.story

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by | October 7, 2012 · 1:14 pm

Hospitality Industry Information Security Risks: Hotel's Guest's Credit Cards Are Targets For "Identity Thiefs" From "Mulitple Charges" During Stay

“…hotels have lots of employees — and many of them have access to the credit card and other personal information of guests. No matter how well trained and supervised, more personnel correlates to greater risk. The fact that low-level employees typically have access to key guest information, and that there is, historically, a high turnover in hotel employees, exacerbates the problem…”

Hotels are obvious targets for identity and financial theft for many reasons. Hotels transact business through credit cards, and those credit cards are kept on file and can be accessed multiple times during a guest’s stay. The possibility that a credit card charge will be recorded occurs with each night’s room charge, room service, bar or restaurant bill, spa charge, and so on. Every charge is another opportunity for an identity thief to access the information using sophisticated computer hacks and other malicious software, generally without the hotel’s knowledge.

The need to respond to guest demands is another source of insecurity. The Identity Theft Resource Center noted, “The ability to connect to the Internet is an integral part of many individuals daily life. This has led to the increased demand for public WiFi.” As a result, hotels find themselves compelled to offer wireless internet, and that service is almost always unsecured. But an unsecured wireless network is “just as dangerous as leaving files of your most important personal documents on a street curb for all to see. Hackers can easily get into an unsecured wireless network and get financial information, business records or sensitive e-mails.” (PC World, “Got Wireless Security”, http://www.pcworld.com/article/125040/got_wireless_security.html). At the same time, hotels have little say in the matter. Guests demand wireless internet service.

Some security researchers have described a wave of attacks against the hospitality industry. In 2010, the cybersecurity consultant Trustwave found that in 38% of its investigations, hotels and resorts were the victims of successful cyber intrusions, despite those firms only representing 3% of its customers.  Hotels represent a disproportionate number of security breaches.

For more:  http://hotellaw.jmbm.com/2012/10/liability_for_guest_information_.html

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by | October 6, 2012 · 7:05 am

Hospitality Industry Legal Risks: North Carolina Restaurant Ordered To Pay $1.7 Million To Parents Of "Unborn Child" Killed By Man In Alcohol-Related Head-On Collision

 “…attorneys say Huffman had been drinking at Eddie’s Place, and that his blood alcohol content was 0.23, nearly three times the legal limit in North Carolina…”

A jury has awarded a Charlotte couple $1.7 million in a lawsuit against a local restaurant in connection with a head-on collision that killed the couple’s unborn son.

Attorneys for Matt and Meredith Eastridge say 25-year-old David Canter Huffman was speeding in his Volvo on Oct. 29, 2010, when the car crossed the center line and hit Matt Eastridge’s Toyota RAV4.

Police say Huffman died in the crash, as did the Eastridges’ unborn son. Meredith Eastridge was a front-seat passenger and was six months pregnant.

For more:  http://www.therepublic.com/view/story/106eccfc426d4238a06f31c1cffbbf72/NC–Collision-Lawsuit

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by | October 5, 2012 · 6:20 am

Hospitality Industry Legal Risks: Workers File Class-Action Lawsuit Against Los Angeles Hotel For "Millions Of Dollars In Unpaid Wages"

“…(the suit) alleges that management has routinely required them to work through required lunch breaks and rest periods and after clocking out…Housekeepers also claim hotel management refused to reimburse them after requiring them to buy cleaning supplies such as sponges and gloves to clean guest bathrooms…”

The suit also alleges that a majority of Holiday Inn LAX employees are earning less than $11.97 per hour, the minimum living wage for hotel workers in the LAX corridor.

Workers at the Holiday Inn Los Angeles International Airport filed a class action lawsuit on Thursday demanding millions of dollars in alleged unpaid wages. A non-union group of bartenders, housekeepers, cooks and other workers filed the suit with support from L.A. hospitality labor union Unite Here Local 11.

Adrian Valencia, general manager at Holiday Inn LAX, said the hotel was surprised by the lawsuit.

“We had never been contacted by the union until Monday, when they stormed in yelling and screaming into the administration offices,” he said. “We pay the annual living wage increase as of July 1 each year and we have some of the best scores for a Holiday in as far as cleaning. We use proper procedures here at the hotel.”

Randy Renick, the attorney representing the workers, said the goal of the suit is to address long-standing labor grievances.

For more: http://www.labusinessjournal.com/news/2012/oct/04/lax-hotel-employees-file-suit-unpaid-wages/

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by | October 4, 2012 · 6:29 am

Hospitality Industry Security Risks: Hotel "Electronic Room Locks" Opened With "Hacking Device" Tool Disguised As "Dry Erase Marker" (Video)

[youtube=http://www.youtube.com/watch?v=QyN-8CeNSZg]

A trio of hackers have built a tool that appears to be an innocent dry erase marker, but when inserted into the port on the bottom of a common form of hotel room keycard lock triggers the lock’s open mechanism in a fraction of a second.

The security researchers who spend their days breaking into clients’ systems to find and fix security vulnerabilities often call themselves “penetration testers,” or “pentesters.” But one group of hotel lock hackers just gave the term “pentest” a very different meaning.

The inconspicuous lock hacking device is an adaption of one demonstrated at the Black Hat security conference in July by Cody Brocious, a hacker and software developer for Mozilla, who discovered and exploited a vulnerability in Onity locks, a cheap and popular hotel room lock that the company says are used on at least four million hotel rooms worldwide. Through the port on the bottom of the lock intended for a device that hotels can use to set master keys, Brocious found he was able to read the lock’s memory, including a decryption key stored on the locks that gave him access to their opening mechanism.

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by | October 3, 2012 · 6:33 am

Hospitality Industry Crime Risks: South Dakota Restaurants Report $6,000 In "Bathroom Piping" Thefts

“…two men, one with a black backpack, were caught on surveillance standing next to the restroom Monday at the Russell Street and Minnesota Avenue restaurant…when a worker checked the restroom soon after, the toilet piping was missing…”

A local fast-food chain is out $6,000 after five of its restaurants were hit by a recent string of thefts of toilet piping in Sioux Falls. Five of the 11 local Burger King restaurants have reported thefts from men’s restrooms since Thursday. The most recent was Monday. Mike Leslie, director of operations for the local Burger King cooperate office, said the suspects might be caught on surveillance.

Police spokesman Sam Clemens said Monday’s two reports push the amount of restroom thefts to 14 since Thursday. Monday’s other theft was from the Ramkota Hotel in northwestern Sioux Falls. A public restroom was hit in the hotel, Clemens said.

Leslie said he has shared surveillance with police.

For more: http://www.argusleader.com/article/20121003/NEWS/310030051/Restaurant-chain-reports-6-000-lost-bathroom-thefts

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by | October 2, 2012 · 6:17 am

Hospitality Industry Legal Risks: Small California Restaurants Face "Expensive And Time-Consuming" ADA Lawsuits, Forcing Some To Close Down

“…Texas West BBQ in Sacramento faced a lawsuit in 2007…and made the needed changes…but then, in March of this year, a second lawsuit is forcing Texas West BBQ to make more changes to be ADA-compliant…including better striping in the parking lot, wider doors, and a larger bathroom…it will cost nearly $35,000…”

An American with Disabilities Act lawsuit was the last straw for a struggling, longtime burger business. Ford’s Real Hamburgers on Sutterville Road shut down just weeks after the governor signed a new state law that would crackdown on ADA lawsuit abuse.

Several attorneys have filed an exceptional number of lawsuits based on ADA violations. Attorney Scott Johnson has filed nearly 2,200 of them in federal court. More often than not, businesses settle after paying thousands of dollars.

“It scares you because it’s so expensive and time-consuming,” said Louise Haynes.

Gov. Brown just signed a bill co-authored by Senate President pro Tempore Darrell Steinberg, D-Sacramento, that would prevent frivolous lawsuits. It would ban demand letters. It gives the defendant time to fix the ADA violations. It’ll also prevent lawyers from stacking multiple claims to increase pay-outs.

” It prevents what I like to call ‘legalized extortion,'” said Travis Hausauer who is co-chair of Californians Against Lawsuit Abuse. His Squeeze Inn Burger restaurant was sued twice by two different attorneys.

” I got sued in court the first time, then I got sued in federal court the second time around,” said Haushauer.

Many people believe the state law is a positive step. But some say it won’t stop ADA lawsuits because attorneys will continue to file lawsuits in federal court.

For more:  http://landpark.news10.net/news/news/105381-ada-lawsuit-leads-long-time-sac-burger-business-close

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