Category Archives: Employment Practices Liability

by | September 23, 2012 · 7:53 am

Hospitality Industry Legal Risks: Wisconsin Restaurant Sued By Former Employees For Violation Of State And Federal Wage Laws; Plaintiffs Seek $46,000 Plus Liquidated Damages And Attorneys Fees

“…servers are paid at a sub-minimum wage rate, plus their tips…the complaint alleges that Ginza management wholly failed to pay any base compensation to Wu and Qin, who only received tips…in addition, the restaurant did not pay overtime compensation when the employees worked over forty hours each workweek…”

“…the restaurant failed to have their servers sign a tip declaration each pay period…and failed to pay the two servers in the amount of $46,000. Under the Fair Labor Standards Act, the servers are entitled to their back pay, plus an equal amount of liquidated damages and attorneys’ fees and costs…”

Two former servers at Ginza Japanese Restaurant in Wauwatosa filed suit Friday in federal court in Milwaukee against Ginza PZW Corp. and Ping Xiao Fang, who operates the business, alleging violations of both state and federal wage laws.

According to one of the plaintiffs, Ginza initially paid her no wages at all, only letting her keep tips. Later, both of the servers assert, Ginza did begin cutting paychecks, but then simply demanded they pay the restaurant back the after-tax portion of their pay.

For more:  http://wauwatosa.patch.com/articles/ginza-restaurant-sued-over-employee-pay

Comments Off on Hospitality Industry Legal Risks: Wisconsin Restaurant Sued By Former Employees For Violation Of State And Federal Wage Laws; Plaintiffs Seek $46,000 Plus Liquidated Damages And Attorneys Fees

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

Tagged as , , , , , ,

by | September 22, 2012 · 6:04 am

Hospitality Industry Legal Risks: Indiana Hotel Settles "Racial Discrimination Lawsuit" With EEOC For $355,000

The operators of an Indianapolis hotel have agreed to pay $355,000 to settle allegations they underpaid and fired African-American housekeepers because of their race…the settlement will be divided among 75 employees or job applicants.

The U.S. Equal Employment Opportunity Commission announced Friday that it had filed a consent degree in federal court with     Noble Management LLC and New Indianapolis Hotels LLC, which operate the Hampton Inn on Shadeland Avenue on Indianapolis’ north side.

The agency says the companies also retaliated against black employees who complained about racial bias. The EEOC also says the hotel regularly excluded African-American job applicants who were equally or better qualified than the Hispanic applicants it hired as housekeepers.

For more:  http://www.ibj.com/indy-hotel-to-pay–355-000-to-settle-race-lawsuit/PARAMS/article/36844

Comments Off on Hospitality Industry Legal Risks: Indiana Hotel Settles "Racial Discrimination Lawsuit" With EEOC For $355,000

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

Tagged as , , , , ,

by | September 7, 2012 · 6:20 am

Hospitality Industry Employment Risks: Florida Restaurant Group Faces Lawsuit For "Failing To Pay Minimum Wages" And Forcing Employees To Work "Off-The-Clock" (Video)

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

[youtube=http://www.youtube.com/watch?v=PoEWJzbMDw0]

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

Darden Restaurants Inc, best known for its Olive Garden and Red Lobster chains, was hit with a lawsuit in federal court in Miami on Thursday accusing one of the largest U.S. restaurant operators of violating federal labor laws by underpaying workers at its popular eateries across the country.

Filed under the Fair Labor Standards Act, it also claims many Darden employees have failed to receive appropriate overtime wages for work in excess of 40 hours per week.

Only two plaintiffs are named in the 19-page complaint filed on Thursday in U.S. District Court for the Southern District of Florida.

For more:  http://in.reuters.com/article/2012/09/06/usa-darden-lawsuit-idINL2E8K6HAN20120906

Comments Off on Hospitality Industry Employment Risks: Florida Restaurant Group Faces Lawsuit For "Failing To Pay Minimum Wages" And Forcing Employees To Work "Off-The-Clock" (Video)

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

Tagged as , , , , , , ,

by | August 14, 2012 · 6:21 am

Hospitality Industry Employment Risks: California Hotel Sued By Former Hostess For "Harassment And Religious Discrimination"

“…Boudlal alleges in a lawsuit filed Monday, that her co-workers began taunting her, calling the Moroccan-born Muslim a “terrorist,” a “camel” and someone who learned how to make bombs at her mosque. She complained to her managers verbally and in writing, she said, with no results…”

Imane Boudlal is suing Walt Disney Corp. in federal court, saying that she was discriminated against and harassed for her religious beliefs. She also alleges that she unfairly lost her job in 2010 after refusing to remove her head scarf at work.

“It’s been hard,” Boudlal said in an interview. “I thought it was just a matter of complaining and a few days, and it wouldn’t affect my life, but it turns out … nothing has been done.”

The lawsuit charges that Boudlal, who is a naturalized U.S. citizen, decided to wear her hijab full time in 2010, about eight months after she began wearing it publicly. She contacted her supervisors at Disneyland to request an exemption to the company’s “look” policy — general appearance guidelines that, according to a Disney website, touch on items ranging from contact lens color and visible tattoos to personal hygiene.

For more:  http://www.latimes.com/news/local/la-me-disney-muslim-lawsuit-20120814,0,2971071.story

Comments Off on Hospitality Industry Employment Risks: California Hotel Sued By Former Hostess For "Harassment And Religious Discrimination"

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

Tagged as , , , , ,

by | August 1, 2012 · 6:19 am

Hospitality Industry Employment Risks: North Carolina Hotel Sued By EEOC For "Failure To Accommodate An Employee's Religious Beliefs"

 “…the defendants’ managers scheduled Neal to work the evening shift on Friday, Dec. 24, 2010.  Because the shift interfered with her Sabbath observance, Neal, who had previously been allowed to be off for her Sabbath by other managers at the hotel, explained that she could not work on that evening because of her Sabbath.  The hotel managers refused Neal’s request and instead fired her…”

The owners/operators of Comfort Inn Oceanfront South in Nags Head, N.C., violated federal law when they failed to accommodate an employee’s religious beliefs and then fired her because of her religion, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed Monday.

According to the EEOC’s complaint, Claudia Neal, who worked as a front desk clerk at Comfort Inn Oceanfront South, is a Seventh-Day Adventist. Neal observes her Sabbath from sundown on Friday until sundown on Saturday.

For more:  http://thejobmouse.com/2012/07/31/comfort-inn-oceanfront-south-sued-by-eeoc-for-firing-employee-over-sabbath-issue/

2 Comments

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

Tagged as , , , , ,

by | July 30, 2012 · 7:01 am

Hospitality Industry Employment Risks: Hotel Management Must Perform Regular "Self-Audits" To Determine If Company Is Properly Classifying Workers As Employees Or Independent Contractors

“(The hotel) industry in particular has a tradition of using staffing companies and other staffing arrangements to provide workers, and I think that industry tradition has provided problems for some hotel companies,”

“Hotel companies need to be ahead of the law…do a self-audit … If you’re not compliant, you can take remedial measures to avoid fines from the Department of Labor.”

As the U.S. Department of Labor under the Obama administration is cracking down harder on violations, staying informed about employee misclassification is crucial for hotel operators if they want to avoid costly fines, according to employment attorneys.

Because employment laws often can be complicated, Feldstein suggests employers classify employees themselves by applying the “Right-to-Control” test.

The Right-to-Control test compares the ends versus the means in producing the work the employee was hired to do. If the employer is concerned with only the end result, the employee should be classified an independent contractor.

However, if the employer controls the means and methods of the project in addition to establishing the routine and schedule, it is likely the worker should be classified an employee.

Should an employer need further information, the U.S. Department of Labor website contains basic guidelines that serve as a good starting point, Chapman said.

“There are HR organizations such as (the Society for Human Resource Management) that conduct training and research and guidance on this law and others, which can be helpful,” he said.

Applying the law to a specific set of facts to determine whether or not that individual should be classified as an employee or independent contractor might require the help of an actual practicing attorney, Chapman said.

For more:  http://www.hotelnewsnow.com/Articles.aspx/8674/Classify-employees-properly-to-avoid-penalty

Comments Off on Hospitality Industry Employment Risks: Hotel Management Must Perform Regular "Self-Audits" To Determine If Company Is Properly Classifying Workers As Employees Or Independent Contractors

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

Tagged as , , , , ,

by | May 29, 2012 · 7:13 am

Hospitality Industry Legal Risks: Hotel Management Must Review Social Media Policy For Employees To Ensure Restrictions Do Not Violate "NLRB Section 7 Rights"

“…in late February 2012, the NLRB filed a complaint against a group of Hyatt Hotels alleging, among other things, that the restrictions placed on the use of social media, such as admonitions not to comment on hotel properties or locations, or to use the Hyatt brand/logo or photos of the properties, were overboard and discriminatory…”

The NLRB reports expressed concerns regarding attempts by an employer to block — for example — employees from using a company’s trademarked logo in social media. That was considered, generally, to be in violation of an employee’s Section 7 rights.

“Interests protected by trademark laws — such as the trademark holder’s interests in protecting the good reputation associated with the mark from the possibility of being tarnished by inferior merchandise sold by another entity using the trademark and in being able to enter a related commercial field and use its well-established trademark, and the public’s interest in not being misled as to the source of products using confusingly similar marks — are not remotely implicated by employees’ non-commercial use of a name, logo, or other trademark to identify the Employer in the course of engaging in Section 7 activity” (2012 Report).

Yet, such disclaimers are sometimes required by the Federal Trade Commission. In fact, under the revised regulations published by the FTC in 2009, if anyone other than a company or the brand owner itself advertises or talks about the company’s product or service, the FTC requires the disclosure of the relationship between the “talkee” and the “brand,” so that potential consumers understand that the recommendation or information contained in the social-media posting could be biased (See generally 16 C.F.R. §255.)

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=533347702

Comments Off on Hospitality Industry Legal Risks: Hotel Management Must Review Social Media Policy For Employees To Ensure Restrictions Do Not Violate "NLRB Section 7 Rights"

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

Tagged as , , , , , ,

by | May 17, 2012 · 6:38 am

Hospitality Industry Legal Risks: Nevada Hotel Sued For "Pregnancy Discrimination" By Room Service Sales Employee; Additional "Class-Action" Allegations For Unpaid Wages

In the same filing to sue the hotel for unspecified damages for pregnancy discrimination, Megia also made class-action allegations for unpaid wages on behalf of the hotel’s employees.

“…employees were not permitted to wear their uniforms outside work and had to pick up and drop off their uniforms before and after their shifts, often leading to additional overtime for which they were not paid, the suit claimed…”

Melodee Megia, a former employee at The Cosmopolitan Resort and Casino in Las Vegas, claims she was told she was fired from her job for saying “bye bye” on the telephone instead of “goodbye” while eight-months pregnant.

She has filed a lawsuit against the hotel for pregnancy discrimination and a class-action suit for workers’ wages, saying employees were not paid for the time they had to wait for and change into their uniforms on a daily basis.

Megia worked at the hotel from November 2010 until September 2011, when she said she was fired “based on her pregnancy,” according to court papers filed with the Clark County District Court in Nevada last week.

Megia was a “room service sales” employee answering the telephone when hotel guests called for room service, occasionally assisting in room delivery, her lawyers said.

For more:  http://abcnews.go.com/Business/fired-las-vegas-hotel-worker-sues-pregnancy-discrimination/story?id=16361237

Comments Off on Hospitality Industry Legal Risks: Nevada Hotel Sued For "Pregnancy Discrimination" By Room Service Sales Employee; Additional "Class-Action" Allegations For Unpaid Wages

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

Tagged as , , , , ,

by | May 9, 2012 · 6:28 am

Hospitality Industry Legal Risks: Texas Hotel Sued By Former Conference Meetings Director For "Employment Discrimination"; Woman Claims Termination Due To Cancer Diagnosis

“…(the Texas woman) believes Crowne Plaza Hotel fired her because of insurance, knowing she had more follow-up surgeries required…(she) is now cancer free and has a new job, hopes to collect financial damages for medical bills and mental anguish…”

A Texas grandmother of five says she was wrongfully fired from her job because she got cancer. Now, she’s suing for employment discrimination.

Janet Hustus, 53, was working as the Conference Meetings Director for Crowne Plaza Houston in January 2011 when she was diagnosed with breast cancer. “I was devastated. When you hear those words it is very devastating,” Hustus said. “You have cancer, and you don’t know what to do. You have so many emotions.”

She went to her general manager a few days later to discuss her schedule and surgery dates. Hustus says Mathers assured her the company would work around her schedule and “support her any way possible,” including keeping her job open for her.

For more: http://abcnews.go.com/Business/texas-grandma-fired-cancer/story?id=16304786

Comments Off on Hospitality Industry Legal Risks: Texas Hotel Sued By Former Conference Meetings Director For "Employment Discrimination"; Woman Claims Termination Due To Cancer Diagnosis

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

Tagged as , , , ,

by | April 29, 2012 · 6:53 am

Hospitality Industry Employee Risks: Minnesota Restaurant Must "Reinstate" Fired Workers With "Back Pay" According To National Labor Relations Board Ruling

 “…the judge ruled the workers must be reinstated within 14 days and are eligible for back pay — about $10,000 each…”

Six local Jimmy John’s workers fired more than a year ago should get their jobs back, a National Labor Relations Board judge ruled last week. The workers were fired after plastering parts of the Twin Cities with fliers claiming the restaurant’s customers were at risk of illness because of a sick-day policy requiring workers to find their own replacement if they were sick.

On Friday the judge ruled the workers must be reinstated within 14 days and are eligible for back pay — about $10,000 each, according to an estimate by Erik Forman, who lost his job at the West End Jimmy John’s store in St. Louis Park, Minn.

The stores’ owners have not yet decided whether to appeal the judge’s ruling.

“It’s a big victory. It’s not unexpected for us — we’ve known for a long time that our posters and our right to speak out about health and safety issues are legally protected,” Forman said. “But we’re glad to see that we’re one step closer to getting back to work and exercise our right to organize.”

In a March 2011 letter to franchise co-owner Rob Mulligan, Jimmy John’s workers called the sick-day policy a risk to the public’s safety, as it required workers to find their own replacement or go unpaid if they didn’t work, creating an incentive to work while ill.

For more: http://www.mndaily.com/2012/04/24/fired-jimmy-john%E2%80%99s-workers-work-again-judge-rules

Comments Off on Hospitality Industry Employee Risks: Minnesota Restaurant Must "Reinstate" Fired Workers With "Back Pay" According To National Labor Relations Board Ruling

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

Tagged as , , , ,