Monthly Archives: April 2013

by | April 20, 2013 · 5:50 am

Hospitality Industry Security Risks: Hotels And Resorts Are “Vulnerable To Security Threats” And Crime As Staff Is Trained To Maximize Guest Experience

“…Because of the nature of their business, implementing TSA-style security measures at hotels would not be a good idea, Todd Seiders says. “They would have to limit the entry into their buildings, search bags, confirm you have business there and inconvenience everyone. The general department of homeland_securitypublic will not stand for that (look at the continuing uproar about the TSA at airports).”…Complicating the issue is the fact that hotel staff members are, by and large, trained to please potential guests, which can render them vulnerable to security threats…”

Todd Seiders, director of risk management at Petra Risk Solutions and former director of loss prevention at Marriott, discussed how hotels and public events can work to increase traveler safety in the future.

“The Boston Marathon bombing is just another example of how hard it is to secure public places and events,” Seiders says. “According to the news, bomb dogs had swept the finish line area 1 hour prior to the start of the marathon. So obviously police did everything they could to secure the area, and the bombs were brought in during the event.”

“There is a constant clash between hotel security experts and seasoned hotel management people, whose pay and bonuses depend on guest satisfaction surveys and comments,” Seiders continues. “Hotel security experts need to find more guest friendly ways to provide security, and hotel managers need to take security more seriously. A large number of hotels do not have a dedicated security staff, so security falls on the guest service staff, and guest service staff is trained never to say no or to offend or interfere with the guest experience.”

Seiders recommends hotels install HD cameras to monitor open public spaces, exits and entrances, both to deter crime and to aid investigation should one occur. Staff should be trained to pick up and investigate unattended bags or luggage, and hotels should work closely with their local police of sheriff department, along with Homeland Security, to discuss security and terrorism.

For more:  http://www.travelagentcentral.com/trends-research/trend-watch-suspects-boston-bombings-surface-whats-next-travel-security-40155

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by | April 19, 2013 · 6:49 am

Hospitality Industry Legal Risks: Pennsylvania Restaurant Franchisee Sued By Manager Who Fractured Ankle After Slipping In Puddle Of Water; Seeking Over $50,000 In Damages

“…The suit alleges that (plaintiff) sustained an ankle fracture that required surgery after she slipped on a puddle of water at the KFC restaurant Hospitality Industry Injury Lawsuitsthat she managed…she sustained the ankle fracture, contusions, abrasions, lacerations and nerve damage, as well as trauma, mental upset, anguish and humiliation…”

A case involving a Philadelphia-area fast food manager who claims she broke her ankle after slipping on a puddle of water at her place of employment may have to proceed in federal, not state court, after defense attorneys filed a motion to transfer the litigation. Nicholas J. Renzi, of Adams Renzi Law in Philadelphia, filed a personal injury complaint at the Philadelphia Court of Common Pleas on April 2 on behalf of his client, city resident Benet Moultrie-Long and her husband, Curtis Long.

On that same day, employees with Temple, Texas-based McLane Foodservice Inc. and McLane Company had delivered frozen items to the fast food restaurant, which is located in Conshohocken, Montgomery County.

This week, attorney Jon Michael Dumont, of the Philadelphia firm Rawle & Henderson, filed a petition with the U.S. District Court in Philadelphia seeking to move the litigation to that venue.

The defense lawyers contend that in reading the plaintiff’s lawsuit, it appears damages would exceed the $50,000 jurisdictional limit at the Court of Common Pleas.

For more:  http://pennrecord.com/news/9790-defense-lawyers-petition-to-remove-kfc-injury-case-to-federal-court

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by | April 18, 2013 · 7:11 am

Hospitality Industry Theft Risks: Illinois Restaurant Employees Plead Guilty To “Skimming Credit Card Information Of Paying Customers”; Over $200,000 In Fraudulent Purchases Made By Ring Leaders

“…(the ring leader) organized the scheme by paying the defendants, who were employees at the various establishments, to skim credit card information of paying customers using a small credit card reader provided to them by Woods and Washington. The employees swiped identity theftapproximately 175 cards through the readers, enabling Woods to reproduce counterfeit credit cards and allowing Woods, Washington and Alex Houston to rack up thousands of dollars in charges…”

Sentences were handed down against seven defendants who illegally obtained personal banking information from patrons visiting Chicago area restaurants and attractions, including Wrigley Field and the Magnificent Mile’s RL Restaurant, according to Illinois Attorney General Lisa Madigan.

Defendants Joseph Woods, Britain E. Woods, Alex Houston, Jenette Farrar, Essence S. Houston, Kenyetta Davis and William Washington pled guilty and were sentenced for “skimming” personal banking information, which was used to make purchases of more than $200,000. The banking and credit card account information was stolen from customers who patronized Chicago area establishments, including Wrigley Field, RL Restaurant, a Chicago Taco Bell location and a McDonald’s restaurant in Berwyn.

Madigan said financial institutions with accounts that were compromised in the scheme include Chase, U.S. Bank, Citibank, Harris Bank, American Express, Bank of America and Fifth Third Bank. The banks assisted in the investigation and notified victims to secure their personal information.

Madigan said identity theft is a significant threat to Illinois consumers. Last year, more than 2,500 identity theft complaints were filed with her office’s Consumer Fraud Bureau. Consumers reported incidents of fraudulent charges on their existing accounts, thieves opening new accounts in their names (including credit card, utility and cell phone accounts) and instances of bank fraud, such as stolen checks or fraudulent withdrawals made to a victim’s bank account.

For more:  http://www.claimsjournal.com/news/midwest/2013/04/18/227236.htm

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by | April 17, 2013 · 7:22 am

Hospitality Industry Legal Risks: Hotel And Restaurant Hiring Policies Must Be Neutral On Employee “Sex Stereoyping”; EEOC To Enforce “Broad Definition Of Sex Discrimination”

The EEOC Title VII effort to protect LGBT (Lesbian, Gay, Bisexual and Transgender) workers relies on a broad definition of sex discrimination, treating harassment and discrimination claims under a “sex stereotyping” theory…The EEOC’s new emphasis on LGBT protections will shape its EEOCfuture en­­force­­ment and litigation against private employers, especially in states that don’t protect gender identity or sexual orientation. Expect the EEOC to educate the LGBT community about its recent rulings. Also expect more charges and more vigorous investigations…Make sure your policies are neutral with regard to sexual orientation, gender identity and expression, and prohibit harassment based on sexual preference, gender stereotypes or intolerance.

Federal law doesn’t prohibit discrimination against lesbian, gay, bisexual and transgender (LGBT) workers. Instead, LGBT protections are a varied patchwork of judicial and agency interpretations and state and local laws that make discrimination actionable only under specific circumstances. LGBT workers continue to face employment discrimination with relatively few legal protections.

In response, the EEOC has begun an effort to protect LGBT workers’ rights by broadly interpreting Title VII of the Civil Rights Act of 1964. The EEOC’s newly released Strategic Enforcement Plan for 2013-2016 lists “coverage of lesbian, gay, bisexual and transgender individuals under Title VII” as one of its top six national en­­forcement priorities. Expect the EEOC to take significant enforcement actions soon and litigate issues more aggressively.

No national law explicitly bans workplace discrimination based on sexual orientation or gender identity. Title VII’s language only protects individuals on the basis of “race, color, religion, sex, or natural origin.” LGBT advocates have tried to amend Title VII to add sexual orientation, expression and identity, but have consistently failed.

For more:  http://www.businessmanagementdaily.com/35121/eeoc-steps-up-efforts-to-protect-against-lgbt-bias-harassment

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by | April 16, 2013 · 5:36 am

Hospitality Industry Health Insurance Solutions: Large Hotel Group “Incentivizing Employees” To Complete Risk Assessments And Increase Activities As Part Of Wellness Program

“…Company executives started by incentivizing employees to complete a risk assessment at no cost to them, and they would receive $50 for their trouble. Approximately 70% of employees participated in the program…(the company) added additional incentives to its wellness program such health insurance nationalas having employees voluntarily pick three activities to improve health. Activities included joining a nutritional plan such as Weight Watchers, joining a fitness club, joining a group exercise plan, getting a dental exam or telephone coaching…”

One of the leaders in addressing the future of health care in the hospitality industry is Loews Corporation. Beginning in 2007, Loews looked at how to improve employee health as part of a self-insurance program. The company saw the benefits of a healthier workforce not only costing Loews less for medical care but also fewer sick days on the job.

With this initial success, Loews increased the incentive to $200 the next year but required employees to agree to a telephone coaching program regarding their health. The participation level dropped to 22%. After walking around talking to employees, executives figured out that employees wanted to hear it from their own doctor. So, the program was adjusted and saw the participation rate increase dramatically. Now, employees go to their doctor to get a preventive exam and do a biometric screening.

Next year, in conjunction with ACA, Loews will remove the direct incentive but will have a two-tiered health plan where if employees have an annual biometric exam with their doctor and select three approved healthy activities to participate in, they will qualify for a lower cost plan. If not, the employee will have a health-care plan with a higher premium as required by their plan administrator.

The hope is that employees will become engaged in wellness activities, choose healthy living habits and help contain health-care costs below the Cadillac tax limit. If for any reason this does not happen, Loews employees have been brought into the discussion that the option of increasing the portion employees pay for their health-care premium, currently set at a low level, may become the only alternative. That’s a real incentive, and innovation at work.

For more:  http://www.hotelnewsnow.com/Articles.aspx/10292/Wellness-programs-mitigate-health-care-costs

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by | April 15, 2013 · 7:24 am

Hospitality Industry Employee Solutions: Hotels Benefit From Hiring Workers With “High Levels Of Energy” With Potential For Advancement

“…there are managers at the Clevelander who started as servers. Many of the employees are considered part of the marketing team because they Hotel Employee Satisfactionhelp market the brand and promote products and services. They do so in the way they look, what they wear and how they interact with guests…You need more skills than you used to…years ago you said, ‘Here’s a mop and a bucket.’ Now there is a lot more detail to every job—even targeted chemicals for cleaning. There is better awareness of load lifting because it’s tougher to pick up a thick pillow foam mattress; and housekeepers have to make sure TVs are functioning…”

Geoffrey Mills, managing director of the Crowne Plaza Times Square and chair of the Hotel Association of New York City, said that while half his workforce is 45 years or older, there is only 3% to 4% annual turnover. The biggest challenge for hoteliers, Mills said, is the cost of operations. “We are trying to tighten employee costs,” he said.

Vijay Dandapani, president and COO of Apple Core Hotels, which has five limited-service properties in Manhattan, said it’s more difficult to find entry level jobs in limited service. “But we do represent the potential for advancement,” he said. “We have three people who came in at entry level and are now GMs.”

Costs also are an issue for Dandapani, who said that his real estate taxes are up 100% in the past few years. All of his employees are unionized, he said, adding: “All hotel employees around the world want to be here because of our respect for property rights and the city’s safety.”

At the non-union Clevelander in South Beach, Florida, turnover is an issue because many associates are in college.

“We try to be as flexible as possible with their scheduling, but there is still 56% turnover,” said Annie Borges, director of human resources for the 60-room hotel, which is heavily driven by its food-and-beverage revenue.

“We hire the smile and train the skill,” she said. “You can’t teach people to be nice, but you can teach them to make the bed. They have to be happy and have a high level of energy.”

Borges said that she has worked in hospitality HR in Miami for nearly 20 years and there is always talk of pending unions.

“But they never come to fruition. Perhaps because we aim to establish a pro-employee type of environment,” she said. “The only union hotel on the beach is the Fontainebleau.”

For more:  http://www.hotelnewsnow.com/Articles.aspx/10290/Outside-issues-create-labor-situations

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by | April 14, 2013 · 6:56 am

Hospitality Industry Employment Risks: North Carolina Restaurant Franchisee Faces “Civil Contempt” Charges For Breach Of EEOC “Sexual Harassment Lawsuit” Settlement

“…an 18-year-old female employee was being sexually harassed by a male coworker who talked to her about his sex life in addition to making EEOCsexual gestures toward her…the suit goes on to claim that the female worker was fired after police went to the restaurant to investigate her complaint…The decree required the company to pay $17,500 in relief to the female employee in addition to establishing or enforcing policies against sexual discrimination and retaliation for reporting sexual harassment…”

A franchisee operating the Dairy Queen restaurant in Winston-Salem’s Hanes Mall is being held in civil contempt by a federal judge because it breached terms of an agreement resolving a sexual harassment lawsuit, according to the Winston-Salem Journal. In December 2011, the agency filed a lawsuit against YS&J Enterprises Inc. in U.S. District Court for the Middle District of North Carolina.

Back pay and monetary damages were sought in the suit.

According to the Journal, the company entered into a consent degree with the EEOC, which was signed by Judge James Beaty in October.

For more:  http://myfox8.com/2013/04/13/dairy-queen-at-hanes-mall-held-in-contempt-over-harassment-suit/

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by | April 13, 2013 · 7:24 am

Hospitality Industry Property Risks: Tennessee Motel Fire “Driven By High Winds” To Attic And Roof; Results In $550,000 Of Damage To Twenty Rooms

Motel Fire“…Firefighters tried to cut the roof to keep the fire from spreading, but that effort failed…The Clinton Fire Department report estimated property losses at $300,000 and damage to contents at $250,000…”

A Thursday afternoon fire at the Motel 6 in Clinton that apparently spread from a mulch bed outside the building to the roof and attic damaged at least 20 rooms and caused an estimated $550,000 damage, authorities said.

The flames went up the side of the building and, driven by high winds, made it to the attic, where the fire burned through the roof, WYSH Radio in Clinton reported. Officials said at least 20 rooms were damaged by fire, and a large part of the rest of the building received smoke and water damage.

Firefighters used a ladder truck to spray water on the fire, and utility workers were called in to turn off power, natural gas, and hotel water.  The American Red Cross responded to help the people staying at the hotel, which is owned by Rocky Daya of Clinton, the report said.

For more:  http://oakridgetoday.com/2013/04/12/motel-6-fire-in-clinton-causes-estimated-550000-in-damages/

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by | April 12, 2013 · 6:38 am

Hospitality Industry Theft Risks: East Coast Hotels Victimized By Man Who “Skipped Out On Hotel Bills” While Posing As Corporate Employee; $60,000 For A Presidential Suite

“…housekeepers found paperwork in the room belonging to (defendant)…a Residence Inn employee told police she received a call from Hotel Theft By DeceptionSerra in which he stated he would pay the bill if the Residence Inn would sign a waiver promising not to charge him with any crime. No agreement was made…Police then were notified the Residence Inn received an email from someone claiming to be a Raytheon employee, stating Serra would be staying there for 15 nights. The email address was identical to the one used in Serra’s February stay, police said…”

A Lowell man is accused of skipping out on bills in upscale hotels in seven states, running up charges while posing as an employee of major corporations.

In one case, prosecutors allege that in March, Michael Serra ran up a $60,000 bill for a stay in the presidential suite at the Ritz-Carlton in Boston under the name Dennis Colling. Serra allegedly said he worked for Citigroup, but does not.

When confronted by Tewksbury police and a U.S. Secret Service agent, Serra allegedly confessed to committing crimes up and down the East Coast for two to three years. The Residence Inn at 1775 Andover St., Tewksbury, reported that a person named Carter Whitmore, who represented himself as a Raytheon employee, skipped out on a $6,349 bill in February. Court documents state that Raytheon refused to pay for the room because it had no employee by that name.

For more:  http://www.lowellsun.com/local/ci_23010643/city-man-held-hotel-fraud

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by | April 11, 2013 · 6:34 am

Hospitality Industry Legal Risks: New York Restaurant And Caterer Sued For “Retaining 20% Service Personnel Charge”; Seeking Class-Action Status For More Than $1 Million In Tips

“…(the complaint states) a ‘reasonable customer’ would have believed the surcharge to be a gratuity…if customers asked if the waiters and waitresses got tips, they were ordered ‘to respond, as instructed by defendants, that they did receive tips’…(the Hospitality Industry Wage Violation Lawsuitsdefendants) knowing or intentional demand for, acceptance of, and/or retention of the mandatory charges paid by customers when contracting with defendants, when such customers were led to believe that such mandatory charges would be paid to plaintiff, defendants have willfully violated New York law…(plaintiffs) seek class certification, restitution of the tips, and costs…”

A class action claims an upstate New York restaurant and caterer cheated its workers out of more than $1 million in tips.

The defendants added a 20 percent “service personnel charge” to all its banquet hall bills, but servers never saw dime one of it, lead plaintiff Ryan Picard claims in Albany County Supreme Court.

Picard claims the family-owned businesses ran the game for 6 years, at the expense of more than 100 workers.  Named as defendants are six entities associated with the Mallozzi family of suburban Schenectady, who operate bakery, restaurant, hotel and catering businesses in Albany and Schenectady counties.

For more:  http://www.courthousenews.com/2013/04/11/56574.htm

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