Category Archives: Insurance

by | July 26, 2010 · 7:22 am

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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by | July 25, 2010 · 1:38 pm

Hotel Industry Pool Safety: Hotel Management Must Increase Supervision Around Pools And Spas And Insure Safety Drain Covers Are Installed Properly (Video)

[youtube=http://www.youtube.com/watch?v=hkgD4Z61h58]

Constant supervision is an important step to ensure safety around pools and spas.

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Pool and spa safety drain covers are an important safety step and are required by law.

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by | July 24, 2010 · 10:19 am

Hotel Industry Health Insurance: Nevada Hotel Operator To Subsidize Medical Insurance For Part-Time Employees In Effort To Reduce Turnover

“We recognize the importance of medical insurance for our team members and their families,” Gordon R. Kanofsky, Ameristar’s chief executive officer, said in a written statement. “This is another way we can show team members we appreciate their commitment to delivering outstanding service to our guests.”

Ameristar Casinos, Inc. said Thursday it will begin subsidizing medical coverage for part-time employees after researching methods for reducing part-time employee turnover.

The company, which owns and operates Cactus Petes Resort Casino and the Horseshu Hotel & Casino in Jackpot, Nev., will pay one-half of the premiums for part-time employees working less than 30 hours per week and their dependents.

“We recognize the importance of medical insurance for our team members and their families,” Gordon R. Kanofsky, Ameristar’s chief executive officer, said in a written statement. “This is another way we can show team members we appreciate their commitment to delivering outstanding service to our guests.”

Ameristar hosted focus groups with part-time employees to gauge how effective the program will be, officials said. Employee feedback led to Ameristar’s decision to make the care plan available to all part-time team members.

For more:  http://insurancenewsnet.com/article.aspx?id=209821

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by | July 23, 2010 · 5:53 am

Hospitality Industry Employees Risks: Hawaiian Hotels Violated State Law When Service Employees Not Given 100% Of Service Charges For Food And Beverage Service

“…The suit, filed by Turtle Bay employees in January 2009, claimed the resort violated a state law enacted in 2000 that requires hotels and restaurants to give 100% of service charges for food or beverage service entirely to employees – unless they tell customers that management’s keeping a portion, the Honolulu Star-Advertiser says…”

Employees of the Turtle Bay Resort on Oahu’s scenic North Shore won a $526,000 settlement  in a lawsuit over tips that had been split among workers and the company without customers knowing.

At least nine similar suits have been filed over the last two years against major Hawaii hotels, Brandee Faria – the Turtle Bay employees’ lawyer – tells the Star-Advertiser. And it’s not only the employees who are hiring lawyers.

Some of the suits were filed on behalf of hotel customers who thought they’d paid tips to staffers – not hotel management.

In a case against the Four Seasons hotels on Maui and the Big Island, the Star-Advertiser says that Hawaii Supreme Court in March ruled that hotel and restaurant employees may sue under the law.

The Turtle Bay settlement covers 130 employees who worked at the hotel between 2005 and 2009; the amount would mean $4,046 per employee if the settlement was shared equally, the story says. Settlement checks were mailed out recently.

For more: http://travel.usatoday.com/hotels/post/2010/07/hawaii-hotel-workers-win-526000-settlement-in-back-tips/100924/1

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by | July 18, 2010 · 12:13 pm

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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by | July 16, 2010 · 6:27 am

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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by | July 14, 2010 · 6:34 am

Hotel Industry Employment Risks And Liability: Dept. Of Labor (DOL) Is Increasing Compliance Audits To Look For Violations Of Overtime Rules, Minimum Wage And Federal Wage And Hour Regulations

“. . .The U.S. Department of Labor (DOL) is planning an initiative that specifically targets every hotel, motel and resort in the United States for audits by the department’s Wage and Hour Division.”

“. . . DOL has labeled the lodging industry as a “high-risk industry” where violations of federal wage and hour laws are most likely to occur. The department has chosen to consider employees in the lodging industry as “the most vulnerable workers” in the country. As a result, you will be subject to a DOL audit, covering all of your employees…”

The Department of Labor’s (DOL) Wage and Hour Division (WHD) has experienced a huge increase in funding and staffing, adding hundreds of new investigators, and is gearing up for a new wave of compliance audits and enforcement actions.

Specifically targeting the hospitality industry, the WHD plans to audit hotel employers for violations of overtime rules, minimum wage, family and medical leave, classification of exempt and non-exempt positions, and virtually every Federal labor wage and hour regulation.

  • Perform an internal audit. Talk to your hotel labor lawyer who can organize an internal audit of your payroll practices, hiring practices, and recordkeeping procedures and then help ensure that your organization is in compliance with Federal laws, including H-2B requirements. It is important that you avoid precipitous action to terminate any employees that do not meet the H-2B visa requirements, because there are anti-discrimination laws that also apply to any termination based on immigration status.
  • Understand your exposure. Hotels that use outside staffing agencies to hire employees face certain risks as well since they can be held responsible for failure on the part of the agency to comply with federal regulations. Also, employers with collective bargaining agreements may need to involve the union on various aspects of the audit, including H-2B visa employees if they are part of the “represented workforce.”
  • Develop a strategy. Experienced hotel labor lawyers can let you know what to expect in a government compliance audit and should help you prepare a strategy for successfully cooperating with all phases of the audit. Your management team should be alerted so that no one panics when the audit notice is received, and they know the importance of getting it to the right person quickly so you can promptly launch the action plan you developed.
  • Get involved. The American Hotel & Lodging Association (AH&LA) is urging hotel employers to ask their elected officials to contact the U.S. Department of Labor on their behalf to express their opposition to the hospitality industry being singled out for compliance audits. AH&LA is the primary advocate of the hospitality industry in Washington D.C., giving a voice to thousands of individual hotels and owners. The Association’s success depends on the number of people in the industry that become involved and support the Association’s important work. To get involved and become a member of the AH&LA you can register on their website at www.ahla.com.

For more:   http://www.hospitalitynet.org/news/154000320/4047438.search?query=hospitality+industry+risks

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by | July 12, 2010 · 10:48 am

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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by | July 9, 2010 · 5:52 am

Hotel Industry Employment Liability: National Labor Relations Board Orders Illinois Hotel To Rehire Employees, Restore Health Insurance Plan And Cease Refusal To Negotiate With Union

The hotel, at 636 S. Michigan Ave., was ordered by the board to offer jobs back to 14 employees who were laid off last month, and provide them with back wages, according to a news release. A board judge also ordered the hotel to restore its 2008-2009 insurance plan and pay employees to compensate for increases to health care costs that were deemed unlawful.

The hotel was also ordered to stop refusing to bargain with the union on the health care package and layoffs, the release said.

The union estimates that the lost earnings and increased benefit costs amounted to at least $250,000, the release said.

For more:   http://cbs2chicago.com/local/blackstone.hotel.union.2.1793955.html

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by | July 8, 2010 · 11:46 am

Hotel Information Security Risks: Hotel Management Must Invest In Data Security Systems To Prevent Point-Of-Sale Theft Of Credit Card Data

“Most of the chronic security breaches in the hotel industry are the result of a failure to equip, or to properly store or transmit, this kind of data, and that starts with the point-of-sale credit card swiping systems.”

A study released this year by SpiderLabs, a part of the data-security consulting company Trustwave, found that 38 percent of the credit card hacking cases last year involved the hotel industry. The sector was well ahead of the financial services industry (19 percent), retailing (14.2 percent), and restaurants and bars (13 percent).

Why hotels? Well, to paraphrase the bank robber Willie Sutton, hackers hit hotels because that is where the richest vein of personal credit card data is. At hotels with inadequate data security, “the greatest amount of credit card information can be obtained using the most simplified methods,” said Anthony C. Roman, a private security investigator with extensive experience in the hotel industry.

“It doesn’t require brilliance on the part of the hacker,” Mr. Roman said. “Most of the chronic security breaches in the hotel industry are the result of a failure to equip, or to properly store or transmit, this kind of data, and that starts with the point-of-sale credit card swiping systems.”

For more:   http://finance.yahoo.com/news/Credit-Card-Hackers-Visit-nytimes-3300094848.html?x=0

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