Author Archives: Ida

Hospitality Industry Employment Risks: New York Restaurants Settle Federal “Wage Violation” Lawsuit For $288,000; Failed To Pay Workers Overtime, Operated “Illegal Tip Pool”

“…The restaurants’ failure to pay them overtime dropped their pay below the federal minimum of $7.25 an hour, the department said. Employees Hospitality Industry Wage Violation Lawsuitscovered by federal minimum-wage and overtime laws must be paid at least 11/2 times their regular hourly wage they when they work more than 40 hours a week…the restaurants operated an “illegal tip pool” in which tipped employees were forced to share their tips with the kitchen staff…”

Two Nassau sushi restaurants and an executive have agreed to pay more than $288,000 to settle federal charges that they “willfully” failed to pay 70 workers minimum wage and overtime, the U.S. Labor Department said.

Xaga Sushi in Merrick and Hewlett, and their president, Mei Yu Zhang, agreed to pay $261,887 in back wages and $26,322 in penalties, the Labor Department announced Monday.

The department contends the restaurants failed to pay the servers, busboys and kitchen staff overtime, even when some employees regularly worked as many as 50 hours a week. Instead, they were paid a flat monthly rate no matter how many hours they worked, the department said.

For more: http://www.newsday.com/classifieds/jobs/2-nassau-sushi-restaurants-to-pay-288g-to-settle-wage-charges-1.6581960

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

Hospitality Industry Legal Risks: National Restaurant Chain Settles “Age Discrimination” Lawsuit With EEOC For $575,000; “Discriminatory Barriers To Hiring” For Applicants Over 40

Ruby Tuesday, Inc. will pay $575,000 and provide significant equitable relief to settle a class age discrimination lawsuit filed by the U.S Equal Equal Employment Opportunity CommissionEmployment Opportunity Commission (EEOC), the agency announced today. The EEOC alleged that Ruby Tuesday engaged in a pattern or practice of age discrimination against job applicants who were 40 years of age or older at six of the chain’s restaurants located in West Mifflin, Greensburg, Altoona, Du Bois, and Indiana, Pa., and in Beachwood, Ohio, in violation of the Age Discrimination in Employment Act of 1967 (ADEA).

The restaurant chain also failed to preserve employment records, including employment applications, as required by the ADEA and EEOC regulations, the EEOC charged in its lawsuit filed in U.S. District Court of the Western District of Pennsylvania (EEOC v. Ruby Tuesday, Inc., Civil Action No. 09-1330).

“This case demonstrates the agency’s ongoing commitment to challenge discriminatory barriers to hiring,” said EEOC General Counsel David Lopez.  “Vigorous law enforcement efforts on behalf of older workers are critical to the EEOC’s mission to eradicate barriers to employment.”

EEOC District Director Spencer H. Lewis, Jr. said, “The EEOC is committed to combatting unlawful age discrimination in the workplace and will hold employers responsible if they make hiring decisions based on age rather than the applicant’s ability to do the job.”

In addition to the $575,000 in monetary relief, the three-and-one-half-year consent decree resolving the lawsuit enjoins Ruby Tuesday from engaging in future age discrimination or retaliation and provides substantial non-monetary relief at the affected Ruby Tuesday locations.

Among other things, Ruby Tuesday, Inc. will:

  • Implement numerical goals for hiring and recruitment of job applicants age 40 and older at the affected locations;
  • Review its job advertisements to make certain they do not violate the ADEA’s prohibitions against age discrimination;
  • Conduct audits, including random reviews of hiring decisions, to ensure non-discrimination and compliance with the terms of the consent decree;
  • Evaluate the job performance of people with hiring authority for the six stores named in the consent decree and set their compensation (including bonuses), in part, based on their degree of success in helping Ruby Tuesday achieve its goals of ensuring that its recruitment and hiring practices provide equal employment opportunities for people who are 40 or older;
  • Designate a decree compliance monitor for oversight of compliance with the requirements of the ADEA and the terms of the consent decree;
  • Provide extensive training on the requirements of the ADEA and the consent decree to the decree compliance monitor, human resources personnel and hiring authorities of the six stores named in the consent decree; and
  • Report to the EEOC and keep records about its hiring practices and compliance with the consent decree.

Philadelphia Regional Attorney Debra M. Lawrence added, “We are pleased that Ruby Tuesday worked with us to craft a comprehensive settlement that will benefit all employees and applicants.  In addition to the monetary compensation for the class members, the extensive training and equitable measures are designed to improve recruitment and hiring of older workers and protect all applicants from age discrimination.”

According to its website, www.rubytuesday.com, Ruby Tuesday, Inc. has nearly 800 company-owned and franchised restaurants and more than 40,000 corporate and franchise team members.

Eliminating barriers in recruitment and hiring, especially class-based recruitment and hiring practices that discriminate against racial, ethnic and religious groups, older workers, women, and people with disabilities, is one of six national priorities identified by the EEOC’s Strategic Enforcement Plan.

The Philadelphia District Office of the EEOC oversees Pennsylvania, Maryland, Delaware, West Virginia and parts of New Jersey and Ohio.  The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the agency is available at its website, www.eeoc.gov.

For more: http://www.eeoc.gov/eeoc/newsroom/release/12-9-13.cfm

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

Hospitality Industry Security Solutions: Hotels Increasingly Providing Dedicated “Women’s Floors”; Increased Security And Amenities For Female Travelers

“…The Crowne Plaza Bloomington in Minneapolis also has a Women’s Floor with additional security features and amenities…The hotel saw a Hotel Safety Concerns For Female Travelersneed, given that females now make up 47% of the guest population at Crowne Plaza Hotels and Resorts, says Gina LaBarre, vice president of brand management for Crowne Plaza…”

“…Hotels are responding by setting aside floors with special key access and amenities that women typically prefer…The Naumi Hotel in Singapore has dedicated the third floor, which has nine rooms, to female travelers. Guests have to use a special access card to get in. Amenities include hair straighteners, sanitary products and yoga mats…”

Book a room on the 11th floor of the Hamilton Crowne Plaza here,  and you’ll get special bath salts and body products, a magnifying mirror, nail polish, nail files and a curling iron. They’re not exactly the types of amenities that men would go for, but that’s the point.

The Hamilton Crowne Plaza is one of a small, but growing number of hotels offering floors dedicated to female travelers. These hotels are particularly trying to appeal to female business travelers, who are moving up the career ladder and hitting the road more often.

For more:  http://www.usatoday.com/story/travel/hotels/2013/12/08/hotels-women-only-floors/3910931/

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Filed under Guest Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Risk Solutions: Hotels Benefit From Online “Digital Suggestion Boxes” Allowing Workers To Upload “Great Ideas” That “Manifest Their Visions” Of A Better Workplace

“…Last year, hotel company Kimpton, which operates 50 boutique hotels nationwide, launched a “Great Ideas Board” website where employees Hospitality Employee Solutionscan upload suggestions and brainstorms at any time, from anywhere. Co-workers are able to log on and build on those suggestions. Steve Pinetti, Kimpton’s senior vice president of inspiration and creativity, started the concept to get employees brainstorming together. Either he or the appropriate division head provides a response to every post within 48 hours…”

The physical suggestion box has gone digital, creating new opportunity for workplace communication. From phone applications to websites to intranet portals and blogs, businesses are replacing paper communication with an online format where employees can manifest their visions and ideas.

“Companies have discovered that the ability to let their employees give ideas and share information is critical,” said Leslie Caccamese, director of strategic marketing and research with Great Place to Work. With employees often dispersed in multiple locations, leaders are turning to technology to encourage innovative ideas and help transmit them to the key decision-makers within the company. The companies that land on the Best Places to Work lists are those that have a foundation of communication, and increasingly, electronic suggestion boxes are part of their programs, she said.

Research shows employees want to have their say on issues or problems that arise in the workplace. On an informal basis, some 54 percent of employees make suggestions to their bosses at least 20 times a year, according to a recent survey by Right Management, an international career and outplacement consultancy. But without a formal system to submit ideas and respond, only a small number of those suggestions turn into results.

Read more here: http://www.charlotteobserver.com/2013/12/06/4524967/employee-suggestion-boxes-move.html#storylink=cpy

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Filed under Labor Issues, Management And Ownership, Risk Management, Technology, Training

Hospitality Industry Technology Solutions: Restaurants Will Soon Benefit From New “Location-Based Mobile Payment” Technology & Apps; Customers “Automatically Check-In”, Complete Purchases With Smartphones

“…Telegraphe Cafe in New York will start testing Beacon soon. Anne Abikhzir, one of the owners of the coffee shop, expects the new gadget will Restaurant Mobile Payment Solutionsincrease check-ins and make the experience of buying coffee and pastries more personal for her customers…shoppers (can) complete their purchases using their phones and that data is collected and analyzed by retailers..”

EBay has spent many hours and lots of money pinpointing the locations of thousands of retail stores so the e-commerce company can capture sales from smartphone wielding shoppers. Now the company’s PayPal division is using a new technology know as Bluetooth Low Energy to get even more accurate location information inside stores through a gadget called Beacon.

The first PayPal employee tests of Beacon are happening at Spice Hut, a restaurant and food truck business in Silicon Valley, Telegraphe Cafe in New York and Get York Coffee in Sydney, Australia. Accurate location information is becoming more important as the rise of smartphones boosts mobile commerce brings the benefits of online shopping to physical stores.

That’s the retail holy grail that eBay and other technology and retail companies are fighting for. Apple released iBeacon location-based technology earlier this year, start-up Shopkick has installed location-based systems in major stores already and a group of the largest retailers, led by Wal-Mart, launched a mobile payments group last year called MCX.

For more: http://www.wltx.com/news/tech/article/257658/378/EBay-PayPal-Pinpoint-Stores-for-Mobile-Shopping

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Filed under Guest Issues, Management And Ownership, Risk Management, Technology

Hospitality Industry Legal Risks: Hotels And Restaurants Hopeful Of “Patent Troll Litigation” Relief As Congress Begins Consideration Of H.R. 3309 (The Innovation Act) On December 5

“…(Patent Troll Litigation) threaten(s) litigation if (businesses) don’t pay a licensing fee for their alleged patented technology, but their demands Hospitality Industry Patent Litigationare so obscure that it is virtually impossible to determine the validity of the patent claims, or even whether they own the patent in question. When we receive a patent assertion claim, it typically comes in the form of a letter demanding that we pay licensing fees or be taken to court…expenses include the costs associated with hiring outside counsel. In the past two years, our legal costs associated with patent trolls have increased from one-quarter of one percent to nearly twenty percent of our total legal costs…”

H.R. 3309 (The Innovation Act) requires a party alleging patent infringinement to disclose more information than is currently required in its initial pleadings.  Speficially, the bill requires a claimaint to identify the patents and claims that are allegedly infringed; and to specify how they are being infringed.

White Castle first opened our doors in Columbus in 1921. Today, our nearly 10,000 team members working in 406 restaurant locations across 12 states deliver the “Taste America Craves.” We remain a family owned business committed to our customers and our communities.  Our success has been driven by the principle that good business, great food and responsible citizenship should all go together.

The restaurant industry, with nearly one million locations, is an incredibly competitive industry. We are constantly seeking new ways to provide additional value to our customers and keep them coming back to our restaurants. This includes our online ordering applications to searching for your nearest white castle location on your mobile device.

Unfortunately, there is a rising threat to White Castle and many other companies interested in providing our customers with the experience they want…it’s called a “patent troll.”  Now, as you can assume by the name, these patent trolls aren’t your legitimate patent holders or small inventors.  These are entities that are created to exploit ambiguities in the patent system to make money off of Main Street businesses.

For more:  http://thehill.com/blogs/congress-blog/technology/192101-patent-trolls-are-gobbling-up-restaurant-innovation

http://www.gop.gov/bill/113/1/hr3309

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Filed under Insurance, Liability, Management And Ownership, Risk Management, Technology

Hospitality Industry Health Risks: Restaurant Study By CDC Finds “Widespread Risky Food Handling Practices” In Over 50% Of Kitchens; Failure To Follow FDA Guidance On Preventing Cross-Contamination

“…For the chicken study, EHS-Net researchers interviewed 448 restaurant managers. They found that many were not following FDA guidance Restaurant Kitchen Health Risksabout preventing cross-contamination and cooking chicken properly and that managers “lacked basic food safety knowledge about chicken”…40% of managers said they never, rarely, or only occasionally designated certain cutting boards exclusively for raw meat, and more than 50% said that thermometers were not used to determine the final cooking temperature of chicken. Further, only 43% of managers knew the recommended final cooking temperature…”

A set of studies released this week by the Centers for Disease Control and Prevention (CDC) and its partners points to widespread holes in restaurant food safety systems, such as risky handling of ground beef and chicken and too-warm shipping temperatures for leafy greens.

Among the key findings, according to the study and a CDC summary:

  • Eighty-one percent of restaurants used subjective measures of hamburger doneness, and 49% said they never checked the final cooking temperature
  • At least two risky handling practices were seen in 53% of restaurants
  • In 62% of restaurants in which workers used bare hands to handle raw ground beef, they did not wash their hands after handling it.
  • Only 1% of restaurants reported buying irradiated ground beef, and 29% were unfamiliar with the product
  • Chain restaurants and those with managers certified in food safety had safer practices than others.

At the same time, the CDC announced plans for a new surveillance system designed to help state and local health departments identify underlying factors that contribute to foodborne disease outbreaks in restaurants and other food service venues.

The research findings, published this week in the Journal of Food Protection, deal with the handling of ground beef, chicken, and leafy greens and with sick food workers.

For more:  http://www.cidrap.umn.edu/news-perspective/2013/12/cdc-finds-holes-restaurant-food-safety-systems

http://www.cdc.gov/media/releases/2013/p1202-food-safety-tools.html

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Filed under Food Illnesses, Health, Labor Issues, Liability, Risk Management, Training

Hospitality Industry Technology Issues: Hotels And Restaurants Face “Privacy Issues” When Guests Wear “Google Glass”; Videotaping Without Permission

“…there are definitely privacy implications for those who wear and use Google Glass in public…People want to go (to restaurants and hotels) and not be known … and Hospitality Industry Google Glass Privacydefinitely don’t want to be secretly filmed or videotaped and immediately put on the Internet…as a society, know how to appropriately use our mobile phones, (and) most Google Glass wearers (should) know how to appropriately use them as well…”

In an effort to protect patrons in his restaurant from being photographed or videotaped without permission, Seattle restaurant owner Dave Meinhart  banned Google Glass from one of his restaurants. But last week, Nick Starr, a local early adopter of Google Glass, was kicked out of Dave’s other restaurant, Lost Lake Cafe & Lounge, starting a PR storm by demanding an apology and the firing of the waitress who kicked him out.

In just a few weeks, thousands of people will become the next wave of not-so-early adopters to receive Google Glass. Initially launched in early 2013, Google Glass quickly became a hot topic for tech pundits who questioned its ability to protect privacy, its usefulness, and whether or not it would be as cool as the bluetooth was.

For more:  http://www.forbes.com/sites/kellyclay/2013/12/03/how-to-not-look-like-a-jerk-with-google-glass/

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Filed under Guest Issues, Liability, Privacy, Risk Management, Technology

Hospitality Law Insider: Managing The Risks Of “Bedbugs” By Stephen Barth Of HospitalityLawyer.com (Video)

HospitalityLawyer.com Education Partner II

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

Hospitality Industry Legal Risks: Pennsylvania Restaurant Sued By Worker For “Religious Discrimination”; Claims New Manager Reduced Hours, Created Hostile Work Environment

“…At the start of her employment, (the plaintiff) informed the defendant that she could not work on Thursdays and Sundays due to her religious Hospitality Industry Discrimination Lawsuitsbeliefs…In June 2011, after a woman identified as Aretha Foster became the plaintiff’s store manager, Matthews had her hours reduced to 15 a week from 35…The complaint alleges that Foster also subjected the plaintiff to an increasingly hostile work environment, that the supervisor would deny Matthews her breaks, and that the woman would verbally abuse the plaintiff in front of other staff members…”

A Jehovah’s Witness from southeastern Pennsylvania is suing a Louisiana-based restaurant over allegations that the company discriminated against her because of her religion. Jonna Matthews, who currently resides in Pottstown, Montgomery County, filed suit at the U.S. District Court in Philadelphia on Nov. 26 against America’s Pizza Co. over the allegedly discriminatory treatment she received at the hands of the defendant while she was employed as a customer service representative beginning in early February 2011.

The plaintiff, however, maintains that she never asked for the reduction in hours and was still available to work Mondays, Tuesdays, Wednesdays, Fridays and Saturdays. The defendant stands accused of violating Title VII of the Civil Rights Act, which bars discrimination on the basis of religion.

“Plaintiff suffered adverse job actions, including, but not limited to, disciplines, denials of various opportunities, and termination,” the suit states.

For more:  http://pennrecord.com/news/12247-montco-woman-sues-louisiana-restaurant-over-religious-discrimination

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