Monthly Archives: March 2013

Hospitality Industry Property Risks: Michigan Restaurant A “Total Loss” After Fire In “Deep Fryer” Spreads Quickly Into Ceiling And Roof

“…the restaurant is a total loss and smoke enveloped the entire intersection where the Restaurant Firerestaurant is located….the fire had spread quickly to the wooden trusses that supported the roof, up above a suspended ceiling…causing the roof to collapse…”

Fire investigators have determined that a fire that destroyed the Ram’s Horn on Tuesday originated in a deep fryer in the restaurant’s kitchen. The fire spread quickly during the lunch hour. Staff and patrons were evacuated and fire crews responded at about 12:12 p.m.

No one was injured in the blaze, which took several hours to extinguish. Middlebelt between Seven and Eight Mile roads remained closed throughout the afternoon as firefighters extended hoses from several fire hydrants to battle the blaze.

When fire crews encountered the heavy smoke and heat and knew that customers and restaurant staff were out of the building, firefighters were moved outside of the restaurant, which occurred within 15 minutes, Whitehead said.

The roof collapsed while firefighters were outside fighting the fire. “It had a pretty good start,” Whitehead said.

For more:  http://www.hometownlife.com/article/20130321/NEWS10/303210566/Fire-gutted-Livonia-Ram-s-Horn-started-deep-fryer

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Filed under Fire, Insurance, Liability, Management And Ownership

Hospitality Industry Health Risks: Tennessee Hotel Housekeepers Hospitalized After “Exposure To Carbon Monoxide” In Basement Laundry Room

hotel Carbon Monoxide Poisoning“…two housekeepers were in a basement laundry room when they began feeling dizzy and nauseous. One of the house keepers got physically sick…both women were taken to Memorial Hospital Hixson for treatment…”

Two Holiday Inn Express employees fell ill over suspected exposure to carbon monoxide. Officials with the Chattanooga Fire Department say they responded to the Holiday Inn Express on Hixson Pike around 10:30 a.m. Tuesday.

Firefighters evacuated the building. They used gas monitors to check the building and found elevated levels of carbon monoxide. The building was ventilated and aired and deemed safe to return to.

For more:  http://www.wrcbtv.com/story/21722645/2-motel-employees-fall-ill-after-carbon-monoxide-exposure

Motel management and Chattanooga Gas officials are working to determine what caused the leak and repair it.

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Filed under Health, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Employment Risks: Maine Restaurant Owners Convicted Of “Harboring Undocumented Aliens For Profit” And “Aiding Document Fraud”; 10 Years In Prison And $250,000 Fine Per Count

“…(the defendants) helped illegal  workers obtain green cards and Social Security cards…several workers testified that they worked six to seven days a week, from 9 a.m. to 10 p.m. with only one two-hour break. Kitchen staff said they were paid in cash. Waiters were not paid but allowed to U.S. Immigration and Customs Enforcementkeep their tips…they face up to 10 years in prison and a $250,000 fine on each  count and may have to give up the profits they earned from the scheme…”

Two brothers who own a popular chain of Mexican restaurants in Maine  were convicted Monday of harboring undocumented aliens for profit and  aiding and abetting document fraud. Following an eight-day trial,  Guillermo Fuentes, 37, of Westbrook and Hector Fuentes, 39, of  Waterville were found guilty in U.S. District Court.

The charges  stem from practices at the Fajita Grill in Westbrook, the Cancun Mexican  Restaurant in Waterville and the Cancun Mexican Restaurant II in  Biddeford, between 2006 and 2011.

The  investigation was conducted by the U.S. Immigration Customs  Enforcement’s Homeland Security Investigations division and the U.S.  Department of Labor, Office of Inspector General and the Office of Labor  Racketeering and Fraud Investigations.

The documents said Roth informed  the federal agency that in routine traffic stops in April 2008,  Westbrook police officers had pulled over Hispanic men who appeared to  work at Fajita Grill, claimed to be from Mexico and could not provide  any U.S. identification. During the investigation, James Bell, a  special agent with the Department of Homeland Security interviewed four  illegal workers, all of whom had worked for the Fuentes brothers at a  Mexican restaurant in Atlanta called El Potrillo.

For more:  http://www.pressherald.com/news/Brothers-guilty-of-profiting-off-illegal-workers-at-Maine-Mexican-restaurants.html

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Filed under Crime, Labor Issues, Liability, Management And Ownership

Hospitality Industry Property Risks: Minnesota Hotel Suffers Extensive Flooding And Electrical Equipment Damage From Broken Water Line

“…the waterline break occurred during a planned repair project and also flooded the skywalk tunnel under the street between the hotel and the hotel water pipe burstdowntown Duluth Public Library…the line that broke was not a city waterline but the hotel’s own service line running into the building…it appeared that a private contractor replacing the service somehow severed the line, triggering the flood of water…”

Officials with Duluth’s Radisson Hotel said Saturday evening that they’re still working to assess the damage caused by a broken waterline earlier this week, and there is no timeline yet for reopening. The waterline break on Wednesday night flooded the downtown hotel’s basement and disrupted electrical service to the building. About 80 guests had to be evacuated to other hotels.

“Hotel ownership and management teams are working as quickly as possible to determine the extent of the damage caused by the flooding and what equipment and work will be necessary in order to open the hotel,” hotel officials said in a news release Saturday evening. “As of (Saturday), that assessment continues and the Radisson is unable to provide an estimated time frame at this point in time. The safety and welfare of our guests and team members is first and foremost in determining when we will be able to open.”

Officials said they continue to work with other hotels in Duluth to relocate guests who had reservations at the Radisson. They said an update on the hotel’s status is expected by Wednesday. The Radisson has 268 guest rooms, in addition to its restaurant, meeting and banquet facilities.

For more:  http://www.duluthnewstribune.com/event/article/id/261688/

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Filed under Insurance, Liability, Management And Ownership

Hospitality Industry Cybercrime Risks: Hotel And Restaurant “Connected Point-Of-Sale (POS) Systems” Attacked By New Malware Called “Dexter”; Steals Credit Card Data And Transmits It “Encrypted” Back To Attacker

“…Just before the 2012 festive period, a new piece of malware surfaced and was found in hundreds of POS systems in hotels, restaurants, retailers and private parking providers. The malware was discovered by Israel-based security cybercrime in hotelsfirm Seculert: ‘Dexter’ (which comes from the string ‘BKDR_DEXTR.A’) is a data-theft tool used to target and attack POS systems. The program, which is Microsoft Windows-based, uses common techniques to search the memory of running processes to identify credit-card track data, but with the uniqueness of the attacker having full control…”

Connected point-of-sale (POS) systems – that’s the checkout to you and me – are the most recent targets of the cybercriminal, and a specially-crafted malware, dubbed Dexter, is further indication that now all kinds of connected devices may be vulnerable to attack.

Seculert CTO and co-founder Aviv Raff explains that while the company is as yet uncertain as to who is behind Dexter, the author is fluent in English: Dexter mainly targeted English-speaking countries. The malware was located in 40 different countries, but notably 42 per cent of POS systems targeted were in North America and 19 per cent UK-based. “Instead of going through the trouble of infecting tens of thousands of consumer PCs or physically installing a skimmer, an attacker can achieve the same results by targeting just a few POS systems with specially crafted malware,” Raff says.

The malware injects itself into the iexplore.exe file in Windows servers, through rewriting in the registry key. It then’ pinches sensitive credit-card data from the server, before transferring it through a remote command and control system. Windows-based POS systems are used increasingly in the industry, and according to Seculert’s findings, 51 per cent of targeted POS systems use the outdated Windows XP. The high percentage indicates Windows-based machines that process unencrypted track data are viable targets.

Microsoft Windows XP may be the ‘preferred’ choice for POS systems, especially among smaller retailers who feel that they cannot afford to upgrade, but with the operating system to be discontinued in 2014, the question is over what support will be offered for remaining XP users and if they will be able to handle the upgrade to Windows 7 or 8.

“Dexter only has three purposes in life,” says Trustwave’s security researcher Josh Grunzweig. “To always be running on the victims’ machine, to find any card, or track, data in any running program on the victim, and to communicate with the attacker who is controlling it.”

The latter is what makes the malware stand out and impresses Grunzweig. “I can’t remember the last time I saw a piece of malware that targeted POS systems that had a nice command and control structure to it,” adds Grunzweig.

He explains the hacker maintains control of the attack by using normal communication methods, but with the skill to hide what it was sending by encoding the data. This involved sending out a message to the attacker, by default, every five minutes and also checks the victim to see if there is any track data running every 60 seconds.

The magnetic strip on a credit card contains three tracks and the malware attempts to extract data from memory relating to tracks one and two, containing numeric or alphanumeric data that can be used to clone the card that was used in a transaction. If Dexter finds any of this track data, it alerts the attacker in the next message sent and the process is repeated. The attacker has the control to change the times and install additional malware or even remove Dexter altogether.

“The most unusual thing about Dexter is the small amount of public attention it has received,” says Trustwave’s Josh Grunzweig. “The issues that make POS-specific malware difficult to discuss in the industry also affects the ability of antivirus companies; without samples they are unable to provide detailed protections for specific threats.”

For more:  http://eandt.theiet.org/magazine/2013/03/turn-on-log-in-checkout.cfm

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Filed under Claims, Guest Issues, Liability, Management And Ownership, Privacy, Risk Management, Technology, Theft

Hospitality Industry Property Risks: Illinois Restaurant Fire Starts In Basement Water Heater; Significant Water And Smoke Damage

“…most of the damage happened in the basement at their Bucktown flagship…service will be halted there and Restaurant Fire in Chicago. NBC Chicago Facebooktheir Chicago French Market satellite…the main dining room in Bucktown sustained smoke damage…”

A fire that broke out in the basement of Lillie’s Q barbecue restaurant in the Bucktown neighborhood late Thursday night destroyed the restaurant and left a firefighter with minor injuries, officials said. The fire at 11:40 p.m. at the restaurant at 1856 W. North Avenue, officials said. Fire officials said the fire rekindled later at about 4:18 a.m.

Firefighters told restaurant officials that the fire likely started in a water heater in the basement, and not one of the smokers. There were also apartments above the restaurant.Chicago Police closed North Avenue in both directions near Wood Street while firefighters worked to contain the fire. After the fire rekindled at 4:18 a.m. firefighters returned to the restaurant and a firefighter sustained minor injuries at that point.

For more:  http://articles.chicagotribune.com/2013-03-15/news/chi-firefighters-battle-blaze-at-lillies-q-restaurant-in-bucktown-20130314_1_scorches-restaurant-spokesman-fire-officials

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Hospitality Industry Legal Risks: California Restaurant Sued By Woman “Sexually Assaulted” By Employee Near Restroom; Failed To Perform Background And Reference Check

“…the lawsuit filed in San Mateo Superior Court alleges that Straits owners failed to provide a background or Hospitality Industry Criminal Background Checks (2)reference check for Guicoy that could have shed light on his “mental instability and propensity toward sexual assault…”

A Foster City woman is suing a restaurant where a dishwasher attempted to rape her as she waited to use the restroom on New Years Eve 2011. Now Mary Hagan, 35, has filed a $1 million lawsuit against Straits in Burlingame, claiming it could have performed a background or reference check on Jose Mauricio Guicoy before hiring him.

Guicoy allegedly grabbed Hagan and began pulling her into a closet with his pants unzipped, reported the San Mateo County Times. She was able to fight him off.

Guicoy pleaded no contest to sexual battery, and was sentenced a month later to two years in prison.

For more:  http://sanmateo.patch.com/articles/foster-city-woman-sexually-assaulted-by-dishwasher-files-lawsuit-against-restaurant

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Filed under Crime, Guest Issues, Labor Issues, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Employment Risks: Michigan Motel Settles “Pregnancy Discrimination Lawsuit” For $27,500; Safety Of Unborn Fetus No Reason For Employment Exclusion

“…according  to the EEOC’s suit, Ramin fired a housekeeper after she reported her pregnancy  to them.  Management stated it could not  allow the employee to continue to work as a housekeeper because of the  EEOCpotential harm to the development of her baby, the EEOC said…”

Ramin Inc., the owner of a Comfort Inn & Suites  in Taylor, Mich., will pay $27,500 to settle a pregnancy discrimination lawsuit  (EEOC v. Ramin, Inc., 2012-cv-15015) filed by the U.S. Equal Employment  Opportunity Commission (EEOC), the agency announced today.

Title VII  of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act  (PDA), protects female employees against discrimination based on  pregnancy.  Under the statute, an  employer may not exclude pregnant women from employment based on the employer’s  supposed concerns about the safety of the mother or unborn fetus.  The EEOC filed suit after first attempting to  reach a pre-litigation settlement through its conciliation process.

In a consent decree filed with the  U.S. District Court for the Eastern District of Michigan, the company agreed to  pay $2,500 in back pay and $25,000 in compensatory and punitive damages.  In addition, Ramin agreed to a permanent  injunction enjoining it from discriminating against an employee due to her  pregnancy or requiring a pregnant employee to provide medical documents that  releases her to work.  The decree  requires that Ramin provide training to all of its managerial and non-managerial  employees on sex and pregnancy discrimination; draft a new employee policy  regarding sex and pregnancy discrimination; post a notice regarding the suit  for all employees; and report to the EEOC for four years.  The injunction, training, policy revisions,  and EEOC monitoring constitute targeted, equitable relief that aims to prevent  similar violations in the future.

For more: http://www.eeoc.gov/eeoc/newsroom/release/3-12-13a.cfm

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Legal Risks: Hotel And Restaurant Employees Subjected To “Conditions Or Actions Intended To Humiliate, Harass Or Destroy Career” File “Constructive Discharge Lawsuits”

“…the intolerable or aggravated category (of constructive discharge) are actions intended to humiliate (e.g., demoting a vice president to janitor overnight); actions intended to harass (e.g., requiring a black employee to Hospitality Industry Termination Lawsuitswork extra hours for the same pay as white co-workers and punch a clock while others do not); actions intended to destroy the employee’s career or guarantee job loss (e.g., sudden, unexplained drops in performance ratings, skipped promotions, forced demotions, pay cuts)…”

Here’s how one state supreme court defined constructive discharge: “An employee who is forced to resign due to actions and conditions so intolerable or aggravated at the time of his resignation that a reasonable person in the employee’s position would have resigned, and whose employer had actual or constructive knowledge of the intolerable actions and conditions and of their impact on the employee and could have remedied the situation, but did not, is constructively discharged.”

Factors that may contribute to a constructive discharge claim—either singly or in combination—include whether an employee suffered:

  • a demotion
  • reduction in salary
  • reduction in job responsibilities
  • reassignment to menial or degrading work
  • reassignment to work under a younger supervisor
  • involuntary transfer to a less desirable position
  • badgering, harassment or humiliation by the employer
  • offers of early retirement or encouragement to retire
  • offers of continued employment on terms less favorable than the employee’s former status
  • a threat of violence or actual physical assault
  • a threat of termination

For more:  http://www.businessmanagementdaily.com/glp/43084/Termination-Guidelines.html

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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Legal Risks: Hotel And Restaurant Management Must Conduct Criminal Background Checks To Avoid “Negligent Hiring Lawsuits”; Screening Must Be Relevant To Job Description To Avoid Discrimination

“…Hospitality employers (conduct criminal-background checks) to avoid negligent hiring lawsuits – a lawsuit from a guest or customer, for example, based on a hotel’s failure to properly screen an employee who later does Hospitality Industry Criminal Background Checks (2)harm…for each job description, (management) should prepare a memo that describes the relevance of, and need for, such information and how it is related to the particular job description…it is inconsistency in the selection of what type of background check each applicant gets that can often get employers sued for discrimination…”

According to some studies, over 90% of employers conduct criminal-background checks for some job applicants and over 70% of employers conduct background checks on all potential new hires. This includes many hospitality-industry employers. Most decision-makers want information about criminal behavior and other related data before bringing a candidate into the organization.

For example, the Equal Employment Opportunity Commission (EEOC) and some states are taking the position that, given the disproportionate rate of minorities that are arrested and convicted of crimes, an employer’s policy of disqualifying all applicants with criminal history can have a discriminatory impact on minority candidates and thereby violate Title VII’s discrimination laws.

Each state has its own position on the use of arrest and conviction records. Even when abiding by those parameters, there is still the need for a comprehensive, consistent set of procedures regarding the use of criminal history to avoid claims of discrimination. The key here is to identify by job description prior to hiring candidates, what kind of criminal background information (including how many years back) the company will look for and to ensure that the same level of background check is done for every applicant for that position.

Establishing a policy and procedure to make sure each applicant for a job description gets the same background check and having a defensible job-related justification for the relevancy and need for the information for each job position is critical to defending against future discrimination claims.

For more:  http://www.mondaq.com/unitedstates/x/225564/employee+rights+labour+relations/And+By+The+Way+Are+You+A+Criminal

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Filed under Crime, Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management