Monthly Archives: October 2013

by | October 10, 2013 · 6:20 am

Hospitality Industry Employment Risks: California Restaurant Found Liable For Over $480,000 In Penalties, Unpaid Wages By EDD; Failed To Pay Minimum Wage, “Split-Shift” Premium

“…(the restaurant) owners are individually and jointly responsible for $108,200 in civil penalties, as well as $373,613 owed to their workers in unpaid minimum wages, overtime pay, rest period, and split-shift premiums…Workers were not paid the state-mandated minimum wage for California Employment Development Departmenthours worked or the one-and-a-half regular rate of pay for overtime hours. Rather, the owners paid in cash: $45 per day for servers and between $75 and $120 for kitchen staff…”

“…The pay rate was further inadequate because it did not reflect the “split-shift” premium, as is required when employees work two or more shifts in a workday with an unpaid break of more than an hour. Workers were not allowed to leave the premises before 2:30 each afternoon when business was closed to the public, and then reported back at 4:30 p.m. for several more hours of work. The investigation also revealed that employers had not kept time records prior to September 1, 2013, or provided staff with itemized wage statements….”

California Labor Commissioner Julie A. Su issued to the owners of a restaurant in Alameda citations totaling $481,813 The citations consisted of civil penalties and wages owed to 13 employees for violation of minimum wage, overtime, and rest period laws. The Labor Commissioner’s joint inspection with the Employment Development Department (EDD) was based on complaints filed in August. The investigation revealed that the cooks, dishwashers, kitchen helpers, and servers employed by Toomie’s Thai Cuisine routinely worked at least 10.5 hours each day, up to 7 days a week.

“The Labor Commissioner is charged with ensuring that employees are paid for all wages they are owed,” affirmed Christine Baker, director of the Department of Industrial Relations (DIR). The Labor Commissioner’s Office, also known as the Division of Labor Standards Enforcement (DLSE), is a division within the DIR.

Labor Commissioner Su stated, “We want to create a culture of compliance where employers profit by playing by the rules and employers who have concluded that it is cheaper to break the law, that the chances of getting caught are slim, and the costs even if you do get caught are minimal know that those days are over.”

Additional information on labor laws and work-related topics are available on the DIR website at http://www.dir.ca.gov.

For more: http://hr.blr.com/HR-news/Compensation/Wage-and-Hour-Investigations/CA-labor-commissioner-cites-restaurant-481813-for–

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by | October 9, 2013 · 6:00 am

“2014 Hospitality Law Conference” Sponsored By HospitalityLawyer.com On February 10-12 Features Industry Legal, Safety And Security Solutions

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by | October 8, 2013 · 5:45 am

P3 Hospitality Industry Risk Report: “Hotel Power Outage Checklist” Presented By Director Of Risk Management Todd Seiders Of Petra Risk Solutions (Video)

[vimeo http://www.vimeo.com/52513104 w=500&h=281]

P3Petra Risk Solutions’ Director of Risk Management, Todd Seiders , offers a P3 Hospitality Risk Report – ‘Hotel Power Outage Checklist’. 

P3 (Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

 For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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by | October 7, 2013 · 5:46 am

Hospitality Industry Employment Issues: Restaurants Increasingly Use “Payroll Debit Cards” To Save Money And Time; Workers Must Be Legally Notified Other Payment Options Exist

For managers, Darden says the cards eliminate two hours of paperwork each pay period. Employees incur no fees if they use their cards at more Hospitality Industry Payroll Debit Cardsthan 40,000 Allpoint ATMs nationwide and make purchases at places that accept Visa cards…They can be a convenient option for workers who don’t have checking accounts, a common situation for many restaurant or retail workers. The National Restaurant Association says 30 percent of industry workers don’t have traditional checking accounts…The Consumer Financial Protection Bureau recently issued a warning to employers that federal law requires other pay options besides debit cards.

In Orlando, companies that swear by the payroll cards include Darden Restaurants, Tony Roma’s, and Smokey Bones Bar & Fire Grill. Nationwide, the number of such cards is expected to more than double in five years to 10.8 million, according to business-research company Aite Group.

The cards save employers money and time. But workers who aren’t careful about where they use the cards can rack up fees, which has put payroll cards under scrutiny. New York’s attorney general is investigating more than 40 companies, including Darden, asking for information about fees and seeking proof that workers know they can receive their pay in other ways.

At Darden, which owns chains including Olive Garden and Red Lobster, new employees automatically are set up to receive debit cards, but they can make a phone call or go online to opt out. Now, 48 percent of Darden’s workers use the debit cards, and 50 percent have direct deposit. Only 2 percent receive traditional checks.

Consumer advocates frown on the automatic signup, saying employees should make the choice upfront. Darden said the cards are more convenient than paper checks, which used to be the automatic payment method.

For more:  http://articles.orlandosentinel.com/2013-10-06/business/os-cfb-cover-payroll-cards-20131006_1_debit-cards-payroll-cards-such-cards

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by | October 6, 2013 · 7:56 am

Hospitality Industry Health Insurance: Restaurants That Are “Applicable Large Employers (ALE)” Must Comply With Affordable Care Act “Measurement Period” Beginning November 1; Workers Classified As “Full-Time” If They Work Over 30 Hours Per Week

Across the country, many restaurant operators are being forced to make a difficult choice: Do they hire fewer employees, reduce the hours of Hospitality Industry Health Insurancecurrent employees or raise menu prices? For some, the answer may be a combination of the three. But regardless of the conclusion they reach, there are no easy solutions…And they’ll have to make those decisions quickly, as the notification period begins in a few weeks and soon the Affordable Care Act will require businesses with 50 or more full-time-equivalent employees to offer health coverage to those employees or face significant penalties.

Without changes, the Affordable Care Act will hurt economic growth and make flexible work schedules for employees more limiting to offer.

The irony is that many restaurant owners already offer health coverage to their full-time employees. However, they define a full-time workweek as 40 hours, which is the accepted definition across most industries. Unfortunately, the Affordable Care Act has redefined “full time” employees as those who work an average of 30 hours per week in a given month. This means that restaurants and other businesses that have always operated as small businesses are now considered “large employers” under the law, and therefore are responsible for health care costs that could reach well into the tens of thousands of dollars.

While restaurant jobs are sometimes unfairly described as low-wage, menial work, the industry is one of the few that still allows employees to prove themselves and work their way up. One in every 3 Americans have worked in a restaurant at some point in their life, and many who work in restaurants chose to do so because of the flexibility in scheduling the industry offers.

This is an industry that accommodates part-time and full-time opportunities. It’s also an industry where people can begin their careers and work life with minimal experience, and learn not only about hospitality and service but also finance, advertising and other business and leadership skills.

Unfortunately, if the Affordable Care Act takes effect in its current form and redefines the full-time workweek as 30 hours, those opportunities could be significantly limited. It very likely means fewer hours for part-time employees and a more rigid scheduling structure.

For more: http://www.rollcall.com/news/obamacares_acute_affliction_on_restaurant_industry_commentary-228092-1.html

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by | October 5, 2013 · 5:31 am

P3 Hospitality Industry Risk Report: “Hospitality Hoaxes And Scams” By Petra Risk Solutions’ Director Of Risk Management Todd Seiders, CLSD

[vimeo http://vimeo.com/52048409]

P3Petra Risk Solutions’ Director Of Risk Management, Todd Seiders, CLSD , offers a P3 Hospitality Risk Update – ‘Hospitality Hoaxes And Scams’.

P3 (Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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by | October 4, 2013 · 5:43 am

Hospitality Industry Legal Risks: Illinois Hotel Sued For Violating “Americans With Disabilities Act (ADA)” By Firing Employee In Need Of Small Oxygen Tank; Obligation To Work With, Accomodate Her Disability

“… the 51-year-old (woman) filed a federal lawsuit alleging that the Paddle Wheel Inn violated the Americans with Disabilities Act by dismissing Hospitality Industry ADA Lawsuitsher without attempting to accommodate her need for a small oxygen tank…The lawsuit also alleged that earlier this year the inn fired Colvin’s daughter, who also worked at the hotel as a desk clerk, just one day after the Equal Employment Opportunity Commission substantiated Colvin’s claim of discrimination…Barry Taylor, Colvin’s attorney, said that under federal law the inn had an obligation to work with Colvin on a reasonable accommodation for her disability and should not have jumped to any conclusions about whether she would be able to perform her duties…”

Donna Colvin loved her job as the overnight desk clerk at the Paddle Wheel Inn, especially the quiet hours spent tidying the lobby and laying out the morning’s continental breakfast while guests were still fast asleep.

Even when respiratory ailments briefly sidelined her two years ago, Colvin was determined to keep working at the charming inn, situated on the banks of the Rock River about 90 miles west of Chicago. Heeding her doctor’s advice, Colvin informed the inn’s manager that she would have to be on oxygen while she worked. The next day, she learned by letter that she had been fired.

The suit contended the inn lied in its dismissal letter by telling Colvin she was being let go because she had failed to cover her shifts during several brief stints in the hospital.

“To assume that someone, just because they’re using oxygen, would be bad for business is really a knee-jerk reaction that is unwarranted,” said Taylor, an attorney for Equip for Equality, a disability rights legal advocacy organization based in Chicago.

For more:  http://www.chicagotribune.com/news/local/ct-met-disabilities-lawsuit-20131004,0,2456004.story

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by | October 3, 2013 · 5:30 am

Hospitality Industry Safety Risks: Texas Hotel Faces “Wrongful Death & Gross Negligence Lawsuit” After Electrocution Of Young Boy; Pool Light System Did Not Have GFCI, Meet Electrical Codes

“…An investigation after the electrocution death found that the pool “did not meet applicable city, state and national electrical codes” Hospitality Industry Wrongful Death Lawsuitsand did not have Ground Fault Circuit Interrupters (GFCI) on the pool light system which are normal installations in pool construction to prevent electrical surges…Brown Electric Inc., had been hired by Hilton to bring the pool into compliance but, according to a city of Houston inspector, had performed work without obtaining the proper permits. After the death Hilton and Brown were cited for “use of electrical system which constitutes a hazard to safety, health and public welfare.”…”

In a lawsuit filed Wednesday, a Missouri City family alleges “gross negligence of epic proportions” for the swimming pool electrocution death of a young man at a Hilton Hotel swimming pool. Raul Hernandez Martinez, 27, and his family spent the Labor Day weekend at the Hilton Houston Westchase hotel at 9999 Westheimer in West Houston.

They were at the swimming pool at dusk when the lights came on automatically. Eyewitness accounts, and now a civil lawsuit, detail how an electrical current immediately surged through the water. David Duran, 11, “suddenly cried out as his body convulsed and he began to float helplessly near the pool light in the deep end,” according to the lawsuit the family filed against Hilton Hotels and the Houston-area electrical contractor Brown Electric Inc., which had performed recent upgrades to the pool’s electrical system.

The boy’s mom Isabel Duran reached for her son and was shocked as well and knocked unconscious. She was revived via CPR and suffered several broken ribs when family members and bystanders dragged her from the pool. The boy’s brother, Raul Hernandez Martinez then fought through the electrical current to retrieve his little brother and push him to the edge of the pool where others helped pull him out.

For more:  http://www.khou.com/news/local/Family-files-lawsuit-in-hotel-pool-electrocution-death-226219641.html

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by | October 2, 2013 · 5:53 am

P3 Hospitality Industry Risk Report: “Hotel Power Outage Checklist” Presented By Director Of Risk Management Todd Seiders Of Petra Risk Solutions (Video)

[vimeo http://www.vimeo.com/52513104 w=500&h=281]

P3Petra Risk Solutions’ Director of Risk Management, Todd Seiders , offers a P3 Hospitality Risk Report – ‘Hotel Power Outage Checklist’. 

P3 (Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

 For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

Comments Off on P3 Hospitality Industry Risk Report: “Hotel Power Outage Checklist” Presented By Director Of Risk Management Todd Seiders Of Petra Risk Solutions (Video)

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by | October 1, 2013 · 5:55 am

Hospitality Industry Theft Risks: Louisiana Hotel Employee Arrested For Stealing Over $34,000 From “Night Deposits”; Altered “Drop Log” And Inflated “Reward Point System”

“…As a controller at the hotel, (the employee) had been responsible for removing and verifying nightly deposits cashiers made into the Hotel Employee Theftsafe. His duties included checking these funds against a corresponding drop log and hotel records…A total of 97 deposits were found to be missing $34,280.53, according to an arrest warrant…to further conceal the scheme, (he) also is accused of falsely inflating the hotel’s reward point system, a program that allows guests to redeem points for services…”

An employee at the Renaissance hotel in Baton Rouge is accused of stealing more than $34,000 from hotel safe deposits and altering financial records to cover his tracks, according to court records. East Baton Rouge Parish sheriff’s deputies issued an arrest warrant for Matthew D. Dziadosz, 38, 8741 Pecan Tree Drive, on one count of felony theft. Detectives began an inquiry in June after an internal audit turned up discrepancies in the hotel’s deposits and accounting records.

“It was noted that varying amounts of cash were systematically removed from the daily dropped envelopes,” Detective Kevin Chenier wrote in the warrant.

Hotel records showed more than three dozen instances in which drop log entries had been altered and another 12 entries omitted entirely.

“This would have given the impression the employee had not dropped an envelope at all,” Chenier wrote.

In some instances, Dziadosz re-wrote an entire drop log, the warrant says. He had been expected to document erroneous or missing deposits, the warrant says, but made no reports “consistent with the volume of falsely reported errors or missing drops.”

For more:  http://theadvocate.com/news/7199061-123/hotel-employee-accused-of-pocketing

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