Category Archives: Labor Issues

by | May 13, 2013 · 6:31 am

Hospitality Industry Legal Risks: Pennsylvania Restaurant Settles “Excessive Alcohol Lawsuit” For $8.9 Million; Staff To Complete “Responsible Alcohol Management Training” And Establish “Designated Driver Program”

“…(the drunk driver) consumed at least six liters of beer and several  shots of liquor over a period of about 41/2 hours…(he) vomited on a table and was  escorted out of the bar by security. He was allowed to leave, walked to his car  and crashed a short time later…his Hospitality Industry Excessive Alcohol Lawsuitsblood-alcohol level an hour after the crash was 0.219, more than twice  the legal limit…”

  • The restaurant’s staff, including managers, servers, bartenders and security, to be certified  in Responsible Alcohol Management training through an approved Pennsylvania  Liquor Control Board trainer.
  • Responsibility for identifying intoxicated guests will be included in job  descriptions for security personnel. In addition, the restaurant will establish  guidelines for responsible alcohol service and disseminate those to  employees.
  • It will use a new point-of-sales system to provide individual checks so they  know how much alcohol each customer is getting.
  • It also will provide water to  guests to slow alcohol consumption; will establish a designated driver program  providing complimentary non-alcohol beverages and will provide free light food  for guests who appear to be intoxicated.

The family of a 7-year-old girl who was killed by a drunken driver in 2010  after he left the Hofbrauhaus restaurant on the South Side on Tuesday reached a  $15.6 million settlement with the company. In addition to the financial payout, the German-style facility has agreed to  a number of changes in its protocol to try to reduce customer intoxication and  drunken driving.

Lexa Cleland, who was asleep in the back seat as her mother drove to pick up  her husband, Mark, from work the night of Dec. 4, 2010, was killed instantly  when her mother’s Toyota Camry was struck by a Ford Mustang driven by Travis  Isiminger on East Carson Street on the South Side.

The settlement breakdown pays $8.9 million to Nicole Cleland; $500,000 to  Mark Cleland; $2.1 million to the estate of Lexa Cleland; and just over $4  million to their attorneys, Goodrich & Associates, for costs and fees.

The lawsuit was filed against Hofbrauhaus and Isiminger, whose insurance will  be responsible for paying $100,000 of the settlement.

Read more: http://www.post-gazette.com/stories/local/neighborhoods-city/owners-of-south-sides-hofbrauhaus-settle-in-girls-death-for-156-million-686644/#ixzz2TBFxrkyx

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by | May 10, 2013 · 6:44 am

Hospitality Industry Risk Solutions: Hotel Housekeeping Carts Are Now Smaller Leading To Increased Room Security, Less Employee Injuries And Reduction In Amenity And Towel Theft

 “Items are not exposed to people walking through hallways so theft of amenity items or towels is greatly reduced…there’s a safety issue, too…Housekeeping staff would park the larger carts outside and keep the door open while they cleaned…not so with the Hotel Housekeeping Safety & Securitysmaller version…the guest comes back and sees the door wide open (and would) think anyone can get in the room…”

“Linen closets (are now) situated closer to the rooms for easy access, eliminating the need for the larger carts. The housekeeping staff has been more productive with the smaller carts because they can move around more quickly, he says. They’re also less prone to injury as the larger carts were heavy to push around…”

Big, rolling housekeeping carts are disappearing from many hotel hallways, just like the floral polyester linens they used to carry. Hotels say they’re replacing cumbersome carts with smaller ones sometimes akin to golf caddie bags out? of necessity, in addition to convenience and even appearance.

Among those saying goodbye to the hall-blocking carts: The Staybridge Suites Times Square in New York, The Ritz-Carlton in Charlotte and the Renaissance Charlotte SouthPark Hotel.

Hotel general managers say there are a number of reasons why smaller is better.

  • Hotels don’t use duvets and bulky linens anymore, so there’s no need for large carts, they say. Plus, storage space is at a premium, and smaller carts don’t take up much space.
  • The bags are small enough to take into the room and leave the hallways clear and safe. They also don’t nick the walls of elevators and corridors like the large carts did.
  • But more important, the guests prefer them, says Rich Hotter, general manager of the Staybridge Suites Times Square.

For more:  http://www.usatoday.com/story/hotelcheckin/2013/05/10/hotels-housekeeping-carts/2146993/

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by | May 8, 2013 · 6:10 am

Hospitality Industry Health Risks: Nevada Restaurant Sued After “Salmonella Food Poisoning” Outbreak; “Inadequate Hand Washing, Handling Of Food With Bare Hands, Improper Food Storage” Violations Found

“…health inspectors were sent to the restaurant to investigate…they found multiple violations including: employees handling ready-to-eat food with bare hands, inadequate hand washing by foodhandlers; inadequate or missing cooling and heating logs for food; raw ground beef stored Salmonella Enteritidisover cooked chicken and raw seafood; fruit flies and small moths in the cooking area; and broken cooking thermometers and foods not being held at proper temperatures…”

A Pennsylvania woman has filed a lawsuit against the Firefly on Paradise, a Las Vegas restaurant. She is seeking compensation for allegedly contracting Salmonella food poisoning from the restaurant. She is being represented by Fred Pritzker, Brendan Flaherty and Ryan Osterholm, who are also representing several other people allegedly sickened in the outbreak.  Pritzker, Flaherty and Osterholm are part of PritzkerOlsen law firm’s Bad Bug Law Team.

The firm’s client is one of the 89 people sickened in a Salmonella outbreak associated with the Firefly. She and her husband were visiting Las Vegas in late April. On April 24, they ate dinner at Firefly on Paradise. Two days later, she developed symptoms that included nausea, fever, abdominal cramps and bloody diarrhea. She is still receiving medical treatment.

According to the complaint, those foods include but are not limited to: pork, calamari, garlic in oil, potatoes, tortilla empanada, lettuce, shrimp, mussels, claims, chicken and fish. The restaurant has been closed during the outbreak investigation to reduce the risk to public health.

For more:  http://foodpoisoningbulletin.com/2013/salmonella-lawyers-file-lawsuit-against-firefly-restaurant-in-las-vegas/

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by | May 1, 2013 · 6:33 am

Hospitality Industry Privacy Risks: Texas Hotel Employee Arrested For “Attempted Improper Photography And Visual Recording”; Cell Phone Placed In Ceiling Above Guest Room Shower

“…Police say a guest reported hearing an alarm-type sound coming from the bathroom area of her hotel room while she was in the shower…she hotel room privacyfound a small pinhole with a camera lens behind it in the ceiling. After moving the tiles, she discovered the cell phone…Hotel security removed the camera from the ceiling and noted that it was powered on…The room’s electric lock showed that (the defendant) had entered the room the day prior with the key assigned to him….”

A housekeeper at the Hyatt Regency hotel located at 208 Barton Springs is charged with misdemeanor attempted improper photography and visual recording. Blue Moo Too, 30, is charged after his cell phone was found hidden in a ceiling tile above the shower of one of the hotel rooms.

Video on the phone showed a man placing it in the bathroom ceiling and wiping away his footprints from the bathtub. The hotel’s executive housekeeper identified the man as her employee, Too, a housekeeper at the hotel.

Too was booked into Travis County Jail on April 12 with a $25,000 bail. He has since bonded out. Police say they didn’t find evidence of any other victims on his cell phone. His computer is still being looked at. At this time, the former housekeeper is facing up to one year in jail and a fine of no more than $4,000.

For more: http://www.kvue.com/news/Hyatt-hotel-worker-charged-with-improper-photography-203045331.html

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by | April 21, 2013 · 12:27 pm

Hospitality Industry Legal Risks: California Restaurant Franchisee Settles EEOC “Disability Discrimination Lawsuit” For $100,000; Former Floor Supervisor With “Intellectual Disability” Demoted To Janitorial Position

“…The EEOC contends that once Alia took over,  Alia management demoted Morgan to a janitorial position, cut his hours and reduced  his hourly EEOCwages, thereby forcing him to find other employment and resign by  June 2009.   The EEOC’s lawsuit argued  that Alia Corporation thus engaged in disability discrimination that violated  the Americans with Disabilities Act  (ADA)…”

Alia Corporation, a franchisee  with over 20 fast-food chain restaurants throughout Central California, agreed  to pay $100,000 to settle a disability discrimination lawsuit filed by the U.S.  Equal Employment Opportunity Commission (EEOC), the federal agency announced  today.

The EEOC originally filed suit against the Merced,  Calif.-based company in 2011 on behalf of Derrick Morgan, a former floor  supervisor with an intellectual disability (EEOC v. Alia Corporation, Case  No. 1:11-cv-01549-LJO-BAM, U.S. District Court, Eastern District of  California).  Morgan was known to be a good employee and  promoted by previous management from crew member to super­visor in 2008.

As  part of the settlement announced today, the parties entered into a three-year  consent decree requiring Alia to hire an equal employment opportunity (EEO) monitor  to create anti-discrimination policies and procedures; a complaint process and  impartial investigations; a centralized tracking system for discrimination  complaints; a system to hold employees accountable for discrimination; and,  annual live disability discrimination training for all management and human  resources employees.  The $100,000 in  monetary relief shall be paid entirely to Morgan.  The EEOC will monitor compliance with the agreement.

“Employers cannot allow biases and stereotypes to factor  into employment decisions,” said Anna Y. Park, regional attorney for the EEOC’s  Los Angeles District Office, which includes Fresno in its jurisdiction.  “The EEOC commends Alia Corporation for  today’s settlement, as it marks a new path for Alia — one which includes equal  employment opportunity for all of their employees, regardless of disabilities.”

Melissa  Barrios, director of the EEOC’s Fresno Local Office, said, “Disability discrimination  charges are on the rise in California, comprising 30% of all charges  filed.  Workers who are unjustly  penalized due to their disabilities have protections under federal law, and the  EEOC is here to help.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/4-18-13.cfm

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by | April 20, 2013 · 5:50 am

Hospitality Industry Security Risks: Hotels And Resorts Are “Vulnerable To Security Threats” And Crime As Staff Is Trained To Maximize Guest Experience

“…Because of the nature of their business, implementing TSA-style security measures at hotels would not be a good idea, Todd Seiders says. “They would have to limit the entry into their buildings, search bags, confirm you have business there and inconvenience everyone. The general department of homeland_securitypublic will not stand for that (look at the continuing uproar about the TSA at airports).”…Complicating the issue is the fact that hotel staff members are, by and large, trained to please potential guests, which can render them vulnerable to security threats…”

Todd Seiders, director of risk management at Petra Risk Solutions and former director of loss prevention at Marriott, discussed how hotels and public events can work to increase traveler safety in the future.

“The Boston Marathon bombing is just another example of how hard it is to secure public places and events,” Seiders says. “According to the news, bomb dogs had swept the finish line area 1 hour prior to the start of the marathon. So obviously police did everything they could to secure the area, and the bombs were brought in during the event.”

“There is a constant clash between hotel security experts and seasoned hotel management people, whose pay and bonuses depend on guest satisfaction surveys and comments,” Seiders continues. “Hotel security experts need to find more guest friendly ways to provide security, and hotel managers need to take security more seriously. A large number of hotels do not have a dedicated security staff, so security falls on the guest service staff, and guest service staff is trained never to say no or to offend or interfere with the guest experience.”

Seiders recommends hotels install HD cameras to monitor open public spaces, exits and entrances, both to deter crime and to aid investigation should one occur. Staff should be trained to pick up and investigate unattended bags or luggage, and hotels should work closely with their local police of sheriff department, along with Homeland Security, to discuss security and terrorism.

For more:  http://www.travelagentcentral.com/trends-research/trend-watch-suspects-boston-bombings-surface-whats-next-travel-security-40155

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by | April 19, 2013 · 6:49 am

Hospitality Industry Legal Risks: Pennsylvania Restaurant Franchisee Sued By Manager Who Fractured Ankle After Slipping In Puddle Of Water; Seeking Over $50,000 In Damages

“…The suit alleges that (plaintiff) sustained an ankle fracture that required surgery after she slipped on a puddle of water at the KFC restaurant Hospitality Industry Injury Lawsuitsthat she managed…she sustained the ankle fracture, contusions, abrasions, lacerations and nerve damage, as well as trauma, mental upset, anguish and humiliation…”

A case involving a Philadelphia-area fast food manager who claims she broke her ankle after slipping on a puddle of water at her place of employment may have to proceed in federal, not state court, after defense attorneys filed a motion to transfer the litigation. Nicholas J. Renzi, of Adams Renzi Law in Philadelphia, filed a personal injury complaint at the Philadelphia Court of Common Pleas on April 2 on behalf of his client, city resident Benet Moultrie-Long and her husband, Curtis Long.

On that same day, employees with Temple, Texas-based McLane Foodservice Inc. and McLane Company had delivered frozen items to the fast food restaurant, which is located in Conshohocken, Montgomery County.

This week, attorney Jon Michael Dumont, of the Philadelphia firm Rawle & Henderson, filed a petition with the U.S. District Court in Philadelphia seeking to move the litigation to that venue.

The defense lawyers contend that in reading the plaintiff’s lawsuit, it appears damages would exceed the $50,000 jurisdictional limit at the Court of Common Pleas.

For more:  http://pennrecord.com/news/9790-defense-lawyers-petition-to-remove-kfc-injury-case-to-federal-court

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by | April 18, 2013 · 7:11 am

Hospitality Industry Theft Risks: Illinois Restaurant Employees Plead Guilty To “Skimming Credit Card Information Of Paying Customers”; Over $200,000 In Fraudulent Purchases Made By Ring Leaders

“…(the ring leader) organized the scheme by paying the defendants, who were employees at the various establishments, to skim credit card information of paying customers using a small credit card reader provided to them by Woods and Washington. The employees swiped identity theftapproximately 175 cards through the readers, enabling Woods to reproduce counterfeit credit cards and allowing Woods, Washington and Alex Houston to rack up thousands of dollars in charges…”

Sentences were handed down against seven defendants who illegally obtained personal banking information from patrons visiting Chicago area restaurants and attractions, including Wrigley Field and the Magnificent Mile’s RL Restaurant, according to Illinois Attorney General Lisa Madigan.

Defendants Joseph Woods, Britain E. Woods, Alex Houston, Jenette Farrar, Essence S. Houston, Kenyetta Davis and William Washington pled guilty and were sentenced for “skimming” personal banking information, which was used to make purchases of more than $200,000. The banking and credit card account information was stolen from customers who patronized Chicago area establishments, including Wrigley Field, RL Restaurant, a Chicago Taco Bell location and a McDonald’s restaurant in Berwyn.

Madigan said financial institutions with accounts that were compromised in the scheme include Chase, U.S. Bank, Citibank, Harris Bank, American Express, Bank of America and Fifth Third Bank. The banks assisted in the investigation and notified victims to secure their personal information.

Madigan said identity theft is a significant threat to Illinois consumers. Last year, more than 2,500 identity theft complaints were filed with her office’s Consumer Fraud Bureau. Consumers reported incidents of fraudulent charges on their existing accounts, thieves opening new accounts in their names (including credit card, utility and cell phone accounts) and instances of bank fraud, such as stolen checks or fraudulent withdrawals made to a victim’s bank account.

For more:  http://www.claimsjournal.com/news/midwest/2013/04/18/227236.htm

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by | April 17, 2013 · 7:22 am

Hospitality Industry Legal Risks: Hotel And Restaurant Hiring Policies Must Be Neutral On Employee “Sex Stereoyping”; EEOC To Enforce “Broad Definition Of Sex Discrimination”

The EEOC Title VII effort to protect LGBT (Lesbian, Gay, Bisexual and Transgender) workers relies on a broad definition of sex discrimination, treating harassment and discrimination claims under a “sex stereotyping” theory…The EEOC’s new emphasis on LGBT protections will shape its EEOCfuture en­­force­­ment and litigation against private employers, especially in states that don’t protect gender identity or sexual orientation. Expect the EEOC to educate the LGBT community about its recent rulings. Also expect more charges and more vigorous investigations…Make sure your policies are neutral with regard to sexual orientation, gender identity and expression, and prohibit harassment based on sexual preference, gender stereotypes or intolerance.

Federal law doesn’t prohibit discrimination against lesbian, gay, bisexual and transgender (LGBT) workers. Instead, LGBT protections are a varied patchwork of judicial and agency interpretations and state and local laws that make discrimination actionable only under specific circumstances. LGBT workers continue to face employment discrimination with relatively few legal protections.

In response, the EEOC has begun an effort to protect LGBT workers’ rights by broadly interpreting Title VII of the Civil Rights Act of 1964. The EEOC’s newly released Strategic Enforcement Plan for 2013-2016 lists “coverage of lesbian, gay, bisexual and transgender individuals under Title VII” as one of its top six national en­­forcement priorities. Expect the EEOC to take significant enforcement actions soon and litigate issues more aggressively.

No national law explicitly bans workplace discrimination based on sexual orientation or gender identity. Title VII’s language only protects individuals on the basis of “race, color, religion, sex, or natural origin.” LGBT advocates have tried to amend Title VII to add sexual orientation, expression and identity, but have consistently failed.

For more:  http://www.businessmanagementdaily.com/35121/eeoc-steps-up-efforts-to-protect-against-lgbt-bias-harassment

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by | April 16, 2013 · 5:36 am

Hospitality Industry Health Insurance Solutions: Large Hotel Group “Incentivizing Employees” To Complete Risk Assessments And Increase Activities As Part Of Wellness Program

“…Company executives started by incentivizing employees to complete a risk assessment at no cost to them, and they would receive $50 for their trouble. Approximately 70% of employees participated in the program…(the company) added additional incentives to its wellness program such health insurance nationalas having employees voluntarily pick three activities to improve health. Activities included joining a nutritional plan such as Weight Watchers, joining a fitness club, joining a group exercise plan, getting a dental exam or telephone coaching…”

One of the leaders in addressing the future of health care in the hospitality industry is Loews Corporation. Beginning in 2007, Loews looked at how to improve employee health as part of a self-insurance program. The company saw the benefits of a healthier workforce not only costing Loews less for medical care but also fewer sick days on the job.

With this initial success, Loews increased the incentive to $200 the next year but required employees to agree to a telephone coaching program regarding their health. The participation level dropped to 22%. After walking around talking to employees, executives figured out that employees wanted to hear it from their own doctor. So, the program was adjusted and saw the participation rate increase dramatically. Now, employees go to their doctor to get a preventive exam and do a biometric screening.

Next year, in conjunction with ACA, Loews will remove the direct incentive but will have a two-tiered health plan where if employees have an annual biometric exam with their doctor and select three approved healthy activities to participate in, they will qualify for a lower cost plan. If not, the employee will have a health-care plan with a higher premium as required by their plan administrator.

The hope is that employees will become engaged in wellness activities, choose healthy living habits and help contain health-care costs below the Cadillac tax limit. If for any reason this does not happen, Loews employees have been brought into the discussion that the option of increasing the portion employees pay for their health-care premium, currently set at a low level, may become the only alternative. That’s a real incentive, and innovation at work.

For more:  http://www.hotelnewsnow.com/Articles.aspx/10292/Wellness-programs-mitigate-health-care-costs

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