Category Archives: Employment Practices Liability

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 | September 28, 2013 · 5:56 am

Hospitality Industry Employment Risks: New York Restaurant Settles “Sexual Harassment” Lawsuit For $35,000; Seven Female Workers Subjected To Groping, Explicit Propositions And Lewd Remarks

“…The EEOC’s lawsuit charged that Angelo’s owners subjected seven female employees to sexual harassment from January 2005 through September 2012.  Angelo’s Pizza was purchased by Kefalas in September 2012…in January 2013, Kefalas was added to the lawsuit as a successor EEOCemployer…According to the seven harassment victims, Angelo’s owners, Kostantinos Raptis, Nikolaos Raptis and Andrew Xenos, groped their breasts and buttocks and made sexually explicit propositions and comments, including requests for sexual acts and other lewd remarks…The EEOC further alleged that Kefalas fired two of the women in retaliation for complaining about the sexual harassment…”

Angelo’s Pizza and Grill, Inc. and Kefalas Enterprises, Inc., the former and current owners of Angelo’s Pizza and Grill, a full-service family restaurant located in upstate New York, will pay seven women $35,000.00 to settle a sexual harassment lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

For example, one of the owners would hold a cucumber or orange traffic cone between his legs and simulate sex.  Another forced a female employee into a back storage room, where he shut the door, turned off the lights, touched her breasts and fondled her.  Angelo’s owners also routinely made comments about oral sex and body parts.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964.  The EEOC filed suit, EEOC v. Angelo’s Pizza & Grill, Inc., and Kefalas Enterprises, Inc., 8:11-cv-01043 (NAM) (RFT), in U.S. District Court for the Northern District of New York in August 2011 after first attempting to reach a voluntary pre-litigation settlement through its conciliation process.

Although Kostantinos and Nikolaos Raptis and Andrew Xenos, the original owners of Angelo’s Pizza, are no longer involved in the restaurant, both Angelo’s and Kefalas will be bound by a three-year consent decree settling the suit.  The decree, in addition to the $35,000 monetary relief, enjoins Angelo’s, its principals and any future businesses it may purchase or operate and Kefalas from engaging in future sexual harassment or retaliation.   Kefalas must also put mechanisms in place to protect any future employees from sexual harassment and retaliation.  The decree has been approved by Federal District Court Judge Norman A. Mordue.

“These women were subjected to especially crude and unacceptable conduct,” said EEOC New York District Director Kevin Berry.  “The EEOC will not stop aggressively pursuing remedies for victims of sexual harassment in the workplace.”

EEOC Senior Trial Attorney Judith Biltekoff added, “The victims in this case have shown great strength in standing up to right the wrongs perpetrated against them by their former employer.  They live and work in a small town in upstate New York where jobs are at a premium.  It took courage to come forward at the risk of losing their jobs.  We are pleased that they will be compensated and that future harassment will be prevented.”

EEOC enforces federal laws prohibiting employment discrimination.  Further information about the commission is available on its website at www.eeoc.gov.  The Buffalo Local Office is part of EEOC’s New York District Office which oversees New York, New England and portions of New Jersey.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/9-27-13a.cfm

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by | September 25, 2013 · 5:50 am

P3 Hospitality Industry Risk Report: “New I-9 Documents” By Petra Risk Solutions’ Director Of Human Resources Sharyn Maldonado, PHR

[vimeo http://vimeo.com/69501224]

P3Petra Risk Solutions’ Director Of  Human Resources, Sharyn Maldonado, PHR , offers a P3 Hospitality Risk Update – ‘New I-9 Documents’.

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 | September 23, 2013 · 5:47 am

Hospitality Industry Legal Risks: North Carolina Restaurant Operator Sued By EEOC For “Religious Discrimination”; Fired Woman For Wearing Skirts As Part Of Her Pentecostal Church Beliefs

“…(the employee, Sheila Silver, was) a member of the Pentecostal church (and believed) women should wear skirts in accordance with this EEOCreligious belief…Silver worked for various Kentucky Fried Chicken restaurants since 1992.  Scottish Food Systems and Laurinburg KFC Take Home purchased the KFC restaurant where Silver worked in April 2013.  At that time, they informed Silver she must wear pants to work because of their dress code policy.  Silver told Scottish Food Systems and Laurinburg KFC Take Home she could not wear pants because of her religious beliefs.  The companies ultimately fired her for refusing to wear pants to work…”

Scottish Food Systems, Inc. and Laurinburg KFC Take Home, Inc., two North Carolina corporations that operate a chain of Kentucky Fried Chicken restaurants in eastern North Carolina, violated federal law by failing to accommodate an employee’s religious beliefs and firing her because of her religion, the U.S. Equal Employment Opportunity Commission (EEOC) charged in an employment discrimination lawsuit filed today.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which requires employers to reasonably accommodate an employees’ due to their religious beliefs as long as doing so does not pose an undue hardship.  The EEOC filed suit in U.S. District Court for the Middle District of North Carolina (EEOC v. Scottish Food Systems, Inc. d/b/a Kentucky Fried Chicken and Laurinburg KFC Take Home, Inc. d/b/a Kentucky Fried Chicken, Civil Action No. 1:13-CV-00796) after first attempting to reach a voluntary settlement through its conciliation process.  The EEOC seeks back pay, compensatory damages and punitive damages, as well as injunctive relief.

“Employers must respect employees’ sincerely held religious beliefs and carefully consider requests made by employees based on those beliefs,” said Lynette A. Barnes, regional attorney for the EEOC’s Charlotte District Office, which includes the EEOC’s Raleigh Area Office, where the charge of discrimination was filed. “This case demonstrates the EEOC’s continued commitment to fighting religious discrimination in the workplace.”

The EEOC is responsible for enforcing federal laws prohibiting discrimination in employment.  Further information about the EEOC is available on its web site at www.eeoc.gov.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/9-19-13c.cfm

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by | September 15, 2013 · 5:34 am

Hospitality Industry Legal Risks: Tennessee Restaurant Sued For “Sexual Harassment And Retaliation” By EEOC; Manager Made “Offensive Comments, Physical Contact” With Teenage Worker

“…About two months after she began working there, the KFC’s 54 year-old store manager began making unwelcome and offensive comments EEOCand physical contacts. The EEOC further charges that the company retaliated against the minor by removing her from the work schedule and firing her within weeks after she reported the harassment to other management officials… The lawsuit asks the court to grant a permanent injunction preventing Memphis Foods from engaging in or condoning sexual harassment; and award appropriate back wages, compensatory and punitive damages…”

Memphis Foods LLC, the owner of a Memphis KFC restaurant, violated federal law by subjecting a teenage employee to sexual harassment and retaliation, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit announced yesterday.

According to the EEOC’s lawsuit, the 16-year-old female worked as a crew member for the KFC restaurant on Winchester Road in Memphis.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964. The EEOC filed suit in the U.S. District Court for Western District of Tennessee, Western Division, (Civil Action No. 2:13-cv-02712) after first attempting to reach a voluntary pre-litigation settlement through its conciliation process.

“Sexual harassment and retaliation in the workplace are always unconscionable, especially when minors are targeted and victimized,” said Katharine W. Kores, director of the EEOC’s Memphis District Office, which serves Tennessee, Arkansas and Northern Mississippi. “This agency considers the protection of minors in the workplace an important priority for eradicating employment discrimination.”

Memphis Foods LLC is an Arkansas limited liability company that owns and operates KFC and Taco Bell Restaurants throughout the greater Memphis area. Overall, the company operates more than 60 restaurants in Tennessee, Arkansas, Kentucky, Illinois and Missouri.

The EEOC recently updated its Youth@Work website (at http://www.eeoc.gov/youth/), which presents information for teens and other young workers about employment discrimination. The website also contains curriculum guides for students and teachers and videos to help young workers learn about their rights and responsibilities in the workforce.

The EEOC is responsible for enforcing federal laws that prohibit employment discrimination. Further information is available at www.eeoc.gov.

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by | September 14, 2013 · 1:37 am

Hospitality Industry Legal Risks: Immigration And Customs Enforcement (ICE) Employment Audits Targeted Restaurants (38%) In 2012; “Silent Raids” Force Workers To Lose Jobs, Large Fines For “Paperwork Errors”

“The administration appears to start with the presumption that employers are not telling the truth about their listed employees…”

U.S. Immigration and Customs Enforcement“…(an Ohio) restaurant was audited in early 2012. No undocumented workers were found…but paperwork errors resulted in a $27,500 fine, which didn’t get reduced. The company paid another $7,500 to have an immigration attorney handle the case and review the I-9 forms of the other 13 restaurants to make sure they were filled out correctly…”

“In late 2010, (a national restaurant) chain lost about 450 Minnesota workers, between 30% and 40% of its employees there…Last year, the burrito chain announced it was under federal investigation over possible criminal securities law violations related to communications to investors of work-authorization compliance. The company has said it is cooperating fully with the investigation…”

The U.S. government has launched a fresh crackdown on employers suspected of hiring illegal immigrants by notifying about 1,000 businesses across the country in recent weeks they must submit documents for audits. The so-called “silent raids” are the largest since July 2009 when just as many companies were notified, according to immigration attorneys, and weren’t publicly disclosed by Immigration and Customs Enforcement, the agency that conducts such inspections.

While the audits don’t lead to the deportation of a firm’s illegal workers, they lose their jobs if discovered. Critics of the crackdown say it drives more immigrants to eploitative, off-the-books work. For employers, the audits can lead to deep losses in productivity, in addition to civil and criminal fines, and many workers end up getting hired by competitors.

For more:  http://online.wsj.com/article/SB10001424127887324755104579071331936331534.html

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by | September 10, 2013 · 6:16 am

Hospitality Industry Legal Risks: Florida Hotel Violated Federal Wage & Labor Laws By Creating “Employment Relationship” By “Directly Supervising” Staffing Company Employees

“…investigators determined that the hotel was liable for repayment of back wages because hotel staff had directly supervised those employed Hospitality Industry Wage Violation Lawsuitsby the staffing agency, creating what Young referred to as “joint employment relationship”…generally the using company tries to avoid the responsibility of the employers by staying out of the direct supervision of the employees or payment…however, we found there was enough direct supervision by Castillo Real employees on the staffing company’s employees to then create an employment relationship…Based on that relationship the hotel was found liable for the repayment of back wages…”

The U.S. Department of Labor found that two-thirds of the staffing companies that provide employees to north Florida’s hospitality industry investigated as part of a new initiative were not in compliance with federal wage and labor laws.

According to a DOL release, the hotel will pay $17,890 in back wages after it was discovered that employees provided by staffing company Maja LLC regularly were not paid overtime after working more than 40 hours a week providing services such as housekeeping and laundering. Additionally, some weeks employees’ wages fell below the federally required minimum wage.

Michael Young, district director of the DOL’s Wage and Hour Division’s Jacksonville District Office said the practice of using staffing companies to fill positions formerly managed by hotels themselves is becoming more prevalent across the country. The initiative looking into compliance among staffing companies was undertaken in four of the 10 districts in the Southeast.

For more:  http://news.wjct.org/post/investigation-finds-north-florida-hotels-violated-federal-labor-laws

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by | September 4, 2013 · 8:35 am

Hospitality Industry Legal Issues: Restaurants Beginning To Replace “Tipping” With Surcharges Or Higher Menu Prices In Response To “Wage Violation Lawsuits”, Cultural Changes

 “…Front-of-house workers are suing one respected restaurant after another, including Dovetail, last month, accusing them of playing fast and Hospitality Industry Wage Violation Lawsuitsloose with the laws on tips. The charges include sharing tips with workers who aren’t eligible for them and making tipped employees spend too much time on what is called sidework, like folding napkins between meals…One such lawsuit was settled for more than $5 million. Some owners now think they can avoid the suits by eliminating tips…”

“…Another change is cultural. The restaurant business can be seen as a class struggle between the groomed, pressed, articulate charmers working in the dining room and the blistered, stained and profane grunts in the kitchen. The rise of chefs that are also owners has brought a few of the grunts to power. But as the average tip has risen to 20 percent or so from 15 percent, the pay for line cooks, dishwashers and others has stayed low…”

“…The self-interest calculation (for servers) may be different now. Credit card receipts and tougher oversight have virtually killed off unreported tips…”

Sushi Yasuda joins other restaurants that have done away with tips, replacing them with either a surcharge (Atera and Chef’s Table at Brooklyn Fare in New York; Next and Alineain Chicago; Coi and Chez Panisse in the San Francisco Bay Area) or prices that include the cost of service (Per Se in New York and the French Laundry in Healdsburg, Calif.).

These restaurants are numerous enough and important enough to suggest that a tip-reform movement is under way. On the other hand, they are few enough and exceptional enough to suggest that the movement may remain very small, and move very slowly.

Americans have stuck with tipping for years because all parties thought it worked in their favor. Servers, especially in restaurants from the mid- to high-priced, made good money, much of it in cash, and much of that unreported on tax returns. Owners saved on labor costs and taxes. And customers generally believed that tips brought better service.

For more:  http://www.nytimes.com/2013/09/04/dining/leaving-a-tip-a-custom-in-need-of-changing.html?pagewanted=all&_r=0

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by | August 29, 2013 · 5:59 am

Hospitality Industry Legal Risks: Ohio Restaurant Operator Sued For “Fair Labor Standards Act” Violations And “Unjust Enrichment”; Employees Forced To “Tip Out” Managers And Others Not Regularly Receiving Tips

“…According to the lawsuit, restaurant employees weren’t allowed to keep all of their tips because they were required to “tip Hospitality Industry Wage Violation Lawsuitsout” managers and other employees who do not regularly and customarily receive tips. That resulted in employees’ being paid less than minimum wage…a tip pool can’t include managers or other workers, such as chefs or dishwashers, who don’t typically receive tips…The lawsuit requests a jury trial for five counts of Fair Labor Standard Act violations and a count of unjust enrichment. It seeks an unspecified amount in damages that (the attorney) said would ultimately prove “substantial.””

A federal lawsuit filed Monday alleges that Jeff Ruby Culinary Entertainment, which runs Jeff Ruby’s Steakhouse and Jeff Ruby’s Carlo & Johnny, forced employees to share tips with managers and other workers in violation of the Fair Labor Standards Act. The practice allegedly stopped about a year ago, but lawyers for three former employees aim to recoup losses from a two-year period beginning in 2010.

Lawyers Sarah Clay Leyshock and Kristen M. Myers – both of the law firm Beckman Weil Shepardson LLC – filed the class-action suit on behalf of the three former employees as well as anyone else who might step forward in the case. Two of the represented employees worked at Carlo & Johnny in Montgomery while the third worked at the Downtown steakhouse, Leyshock said.

“Under the Fair Labor Standard Act, employees are required to retain their own tips. The one exception is that employees can be required to share their tips in a valid tip pool,” Leyshock said. She said invalid tip pools are fairly common, but still illegal.

For more:  http://news.cincinnati.com/article/20130827/NEWS/308270075/Suit-Two-Ruby-eateries-skimmed-tips

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by | August 23, 2013 · 5:50 am

Hospitality Industry Employment Risks: Mississippi Hotel Sued For “Pregnancy Discrimination” By EEOC; Woman Fired On First Day Of Work After Informing Manager Of Pregnancy

“…According to the EEOC’s suit, (the employee) informed her manager of her pregnancy on her first day of work.  That evening, the manager terminated Harmon and replaced her with a non-pregnant employee, the EEOC said…”

EEOC“Employers cannot penalize women for choosing to have a family,” said Katharine W. Kores, district director of the EEOC’s Memphis District Office, which has jurisdiction over Arkansas, Tennessee and portions of Mississippi.  “This agency will continue to work to eliminate this type of discriminatory conduct.”

Jiji, Inc., a Holiday Inn franchisee located in Batesville, Miss., violated federal law when it fired an employee because of her pregnancy, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act.  The EEOC filed suit, Civil Action No. 3:13-cv-00212, in U.S. District Court for the Northern District of Mississippi, Oxford Division after first attempting to reach a pre-litigation settlement through its conciliation process.  The suit seeks back pay, compensatory and punitive damages, reinstatement and injunctive relief.

Jiji, Inc. is a Mississippi corporation based in Batesville that owns, manages, and operates hotel facilities in Mississippi. The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the EEOC is available on its web site at www.eeoc.gov.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/8-22-13.cfm

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