Category Archives: Crime

Hospitality Industry Employment Risks: Hotel Management Must Take Steps To Mitigate “Workplace Violence” By Having Relevant Policies In Place

Threats derive from a complex number of sources that may trigger violence. These may include policies that some employees find objectionable, such as a bad performance review or constructively intended criticism; rivalry or disagreement between employees; failed or drama-filled romance with a co-worker; and stressful or discourteous interactions with customers (who may themselves be sources of violence).

“…employees have benefited from stress-reduction classes or lessons in tactics to diplomatically handle difficult people…”

Most commonly, the violent act is undertaken by a terminated employee who becomes disgruntled and feels there is nothing to lose.

    Prior to making any new hires, an employer would be wise to assess the risks and set up relevant policies that at least address the most common threats. This evaluation might begin with an assessment of the premises. Sometimes the most serious threat is external. Depending on the type of business they conduct, employees may routinely expect to handle contentious or emotionally distraught customers. Other workers, perhaps those who handle large cash transactions or valuable merchandise, may be targets of robbery.

    Short of creating a high-security compound, employers can take some precautionary measures in these cases. Mitigating features can include alarm systems, security cameras or guards, an employee-controlled buzzer on the entrance door and even bulletproof glass.

    Another approach that may be less obvious, yet is effective, is for employers to train employees on how to avert bad situations. For instance, employees have benefited from stress-reduction classes or lessons in tactics to diplomatically handle difficult people.

For more:   http://www.workforce.com/section/legal/feature/employers-prevention-workplace-violence/index.html

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Hotel Industry Liability Risks: Florida Hotel Owners Sued By Victim Of Hit-And-Run Car Accident In Parking Area During A Sponsored Golf Event

The lawsuit claims that the tournament operators and sponsor, along with the property owners and manager, had inadequate lighting in the parking area where the crash occurred, failed to follow industry standards in designing and building the parking area, failed to use proper traffic control devices, designed the parking area in a confusing fashion, and didn’t properly staff the parking area.

The attorney representing Jack Justice, one of three people run down by a sport utility vehicle in the parking lot of the ACE Group Classic golf tournament in February, has filed a lawsuit against the owners of the property where the crash occurred, the tournament operators — including the PGA Tour — as well as the owner of the SUV and his company.

The 37-page lawsuit was filed by Mark S. Weinstein on Aug. 27 in Lee County Court.

“Mr. Justice almost died,” Weinstein said. “He’s lucky to be alive.”

“His injuries were completely avoidable,” Weinstein added. “When a corporation sponsors a golf event; when a corporation runs a golf event; when a corporation is paid to plan a nationally televised golf event where the purpose is to invite the public onto your premises and in the end make money … you can’t just have a parking lot area and just say ‘Everyone park here. Good luck.’”

For more: http://www.naplesnews.com/news/2010/sep/01/victim-ace-group-golf-cart-crash-files-lawsuit-all/

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Hotel Industry “Art Insurance” Issues: Hotels Are Increasingly Hanging “Real Artwork” In Lobbies And Hallways To Please More Discriminating Clientele

“Hoteliers are not only trying to come up with a theme or a style that attracts customers, but they are approaching it in a much more professional and involved way,” said Sean Hennessey, chief executive of Lodging Investment Advisors, a consulting firm in Valhalla, N.Y.

“It used to be that you could get away with just slapping something up in the lobby,” he added, “but more and more customers are looking and evaluating it much more closely.”

For the James, meeting that demand has meant trying to reflect the artistic microclimate of SoHo. Though many of the artists who once made the area a creative mecca have fled, an emerging art scene is still represented through nonprofit institutions there that support artists and show their work.

Denihan Hospitality Group, which is developing the hotel, operates another James Hotel in Chicago that is also dedicated to emerging art. At the Surrey, one of its New York hotels, work by established names like Jenny Holzer, Claes Oldenburg and William Kentridge nods to its location on East 76th Street, near major art showcases like the Whitney Museum of American Art.

For more:   http://www.nytimes.com/2010/08/30/nyregion/30hotelart.html?src=me

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Hotel Industry Risks: Hotel Managers And Employees Must Spot Prostitution And Drug Risks When Local Guests Book Rooms For One-Week Or More

Police have started a program to educate hotel employees on how to spot prostitutes and drugs. One warning sign” When a guest with local address books a hotel room for seven or eight days, the Inquirer says.

Hotel prostitution became a high-profile last year when a woman who had advertised erotic services in a Craigslist ad was beaten and fatally shot at close range at the Boston Marriott Copley Place. Police ultimately arrested Philip Markoff, a medical student who was dubbed the Craigslist Killer, for her killing and other robberies of women in hotels. Markoff committed suicide in jail earlier this week.

Crime has been climbing at airport hotels over the last six to eight months, and Capt. Dan MacDonald III says that it can be linked to prostitution.

“This violence has resulted in numerous robberies, assaults and one homicide all directly related to prostitution going on at Philadelphia airport hotels,” the Daily News quotes him as saying.

Philly isn’t alone in fighting prostitution activity in airport hotels

For more:   http://travel.usatoday.com/hotels/post/2010/08/philly-police-bust-airport-hotel-prostitution-ring/108959/1

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Hospitality Industry Cybercrime Risk Management: “Cloud Computing” Providers Will Carry “Cyber Insurance To Mitigate The Risk Of Data Breaches Or Unexpected Downtime”

The manager of a fine hotel would never allow an electrician or plumber to work without being insured; it’s standard fare on service contracts in the physical world. Not so in cloud computing, where provider coverage in the form of cyber insurance is far from a given. This undoubtedly will change as businesses push providers to share the risks of a data breach or unexpected downtime, experts said.

Such large cloud computing providers as Salesforce.com Inc. do carry cyber insurance to mitigate the risk of data breaches or unexpected downtime, but “smaller providers are not carrying insurance and have no plan to [do so] until the larger customers push back and say, ‘You’re in our risk profile now,'” said Drew Bartkiewicz, vice president of technology and new media markets at The Hartford Financial Services Group, a cyber insurance company based in New York.

For the cloud computing model to work, cloud customers, as well as cloud providers, need to share the risk, according to Drue Reeves, director of research for the Burton Group in Midvale, Utah. If a provider were wholly responsible for the data of hundreds or thousands of tenants, it simply wouldn’t be able to buy enough insurance to cover the liability. To protect themselves in this risky situation, cyber insurers generally cap their policies at $10 million or $15 million, forcing providers and large customers to keep shopping, experts said.

For more:  http://searchcio.techtarget.com/news/2240021040/Cyber-insurance-mitigates-the-risk-of-data-breaches-in-cloud-computing

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Hospitality Industry Alcohol Sales Liability: Hotel And Restaurant Bar Owners Can Face Huge Damages From Lawsuits Resulting From Drunk Patrons Car Accidents

Make sure you have liquor liability insurance and that there’s plenty of financial space between you and your business.

“These types of cases can put a bar, a grocery store, convenience store, hotel or restaurant out of business and if they’re not careful, the people that are behind the ownership could see their houses or bank accounts put at risk,”

A recent Supreme Court ruling is going to put more pressure on businesses that sell alcohol.

Bars, restaurants, and even convenience stores could face stiffer penalties for selling alcohol to someone who ends up injuring someone else in a car accident.

On Monday, the Supreme Court of South Carolina upheld a 2003 ruling that awarded $10 million to a man who sued a bar after one of its patrons ran into him on a Greenwood highway.

“These types of cases can put a bar, a grocery store, convenience store, hotel or restaurant out of business and if they’re not careful, the people that are behind the ownership could see their houses or bank accounts put at risk,” said Christian Stegmaier, a retail and hospitality specialist at Collins and Lacy in Columbia.

For more:  http://www.live5news.com/Global/story.asp?S=12900444

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Hospitality Industry Workers’ Compensation Risks: Hotel Owners Forced To Pay Large Damage Award For “Failing To Provide A Safe Work Place And Not Procuring Workers’ Compensation Insurance” While Paying Undocumented Clerk In Cash

“…forced the owners of a large hotel chain to pay more than one million dollars in damages due to their negligence in failing to provide a safe work place and not procuring Workers’ Compensation insurance. The hotel chain had a practice of paying their employees cash and not providing Workers’ Compensation insurance…”

 In California, an employer can be sued directly by his employee, if the employer failed to obtain Workers’ Compensation insurance. This is true even if the injuries were primarily caused by the negligence or intentional conduct of third parties. McMahon’s client, a foreign citizen, was working without a visa and the owners were aware that he was an undocumented worker.

The client, working as a night clerk, was summoned to a scuffle at a room in the hotel at 2:00am. He was attacked by guests when they were asked to keep the noise to a minimum. The plaintiff was rendered unconscious and spent almost four weeks at a local county medical facility with various broken bones, teeth, and a head injury. The attackers were eventually convicted of attempted murder and are serving lengthy sentences within the California state prison system.

For more:  http://www.onlineprnews.com/news/47075-1279302038-timothy-mcmahon-robert-allard-law-firm-of-corsiglia-mcmahon-allard-selected-as-superlawyers.html

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Hospitality Industry Cybercrime: Hotels And Restaurants Combine For Over 50% Of All Credit Card Data Theft Because Of Their Dependence On Credit Cards And Focus On Servicing Guests

“…According to a recent study, 38% of all credit card breaches occur in hotels…financial services industry accounts for 19% of breaches… Retailers 14%, and restaurants at 13%…”

Hotels are easy targets because they are all credit card-based. It is possible to reserve a room without providing a credit card number, but they don’t make it easy. And hotels themselves certainly aren’t fortresses designed to keep bad guys out. They’re designed to be open and inviting, with, at best, a bellman whose focus is assisting guests rather than guarding the front door. Maybe that mentality exists in hotels’ IT security departments, too.

The root of the issue is the hotel industry’s insufficient security measures to prevent data breaches. Many rely on older point of sale terminals and outdated operating systems, which are more vulnerable to hackers. When the recession hit, many hotels cut back and decided to hold off on upgrades.

While their defenses were down, hackers slithered into their networks to steal guests’ personal financial data. Once thieves have accessed this data, they can clone cards with the stolen numbers and use them to make unauthorized charges.

For more:   http://www.finextra.com/community/fullblog.aspx?id=4286

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Hotel Industry Privacy Risks: ESPN Reporter Erin Andrews Files “Negligence, Negligent Infliction Of Emotional Distress And Invasion Of Privacy” Lawsuit Agains Hotels

“I do hope that my experience will cause the hospitality industry to be more vigilant in protecting its guests from the time they reserve a hotel room until they check out.”

Her suit claims negligence, negligent infliction of emotional distress and invasion of privacy against the hotel entities.

ESPN reporter and road warrior Erin Andrews filed a civil suit today against Marriott International, Radisson Hotels International and others involved with the hotels in which a stalker surreptitiously filmed her nude through a hotel-room peephole.

Andrews was stalked and/or filmed in rooms at the Marriott Nashville at Vanderbilt University, the Radisson Airport hotel in Milwaukee, and a third hotel in Columbus, Ohio. Andrews stays in hotels frequently for her job as an ESPN reporter “always with the expectation of privacy once checked into her room,” the release says.

“Although I’ll never be able to fully erase the impact that this invasion of privacy has had upon me and my family,” Andrews says in the release , “I do hope that my experience will cause the hospitality industry to be more vigilant in protecting its guests from the time they reserve a hotel room until they check out.”

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Hospitality Industry “Employee Theft” Risk Management: Hospitality Business Owners Must Amend Employment Manuals To Specifically Prohibit Employee Access To Company Records Once “Employment Ceases”

“…employers should amend their employment manuals to assert that any authorization granted to an employee to access the company’s networks, files or data automatically ceases when the employee has been terminated, tenders a resignation or forms an intent to leave the employer for any reason — irrespective of whether the employer has actually blocked the employee’s access…”

“…employers should make clear in their employment handbooks, manuals and employment agreements that any authorization to access company data is granted only in furtherance of the employer’s business purposes. They should state explicitly that any other access is unauthorized. Such language has been cited by courts in several cases where employer CFAA claims have been allowed…”

“…employers must remain vigilant to retrieve laptop computers from employees immediately after an employee gives notice. They should also immediately change passwords and close remote access upon learning of an employee’s intention to leave the company…”

According to “A Statistical Analysis of Trade Secret Litigation in Federal Courts,” that was recently published in the Gonzaga Law Reform, the number of trade secret cases has grown “exponentially” in recent years. “Most alleged misappropriators are someone the trade secret owner knows,” the authors write. “Specifically, in over 85 percent of cases, the alleged misappropriator was either an employee or business partner.”

Cases of employee-related data theft more than doubled between 2006 and 2008, according to a study conducted by accounting and consulting firm KPMG. Based on its findings, the firm concluded that the number of such incidents is “almost certain” to increase further, especially in a difficult economic environment.

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=475264808

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