Category Archives: Labor Issues

by | December 28, 2012 · 6:50 am

Hospitality Industry Theft Risks: Wisconsin Hotel Manager Charged With Stealing More Than $28,000; Purchased Prepaid Credit And Gift Cards From Company Accounts

A police audit of credit card purchases made by Huff on her company account revealed $19,603 in prepaid Visa and other gift card purchases made at a local grocery store during a six-month period. Investigators also employee theftdiscovered checks Huff wrote for personal use as well as additional credit card purchases for a cellphone, a computer, auto insurance and auto repairs.

A Schofield woman charged with stealing more than $28,000 from two hotels she managed will be sentenced Jan. 10 after reaching a plea deal with prosecutors. Gretchen Huff, 32, was charged in March with embezzlement after investigators discovered thousands of dollars in unauthorized charges to her employer’s credit card for personal purchases. Huff is the former general manager of two Ghidorzi Co. hotels, the Country Inns and Suites in Schofield and the Fairfield Inn and Suites in Weston.

Managers at Ghidorzi Cos. became suspicious of Huff in January after discovering a one-week van rental in August 2011 for $1,029. Police say Huff paid for the rental with a business credit card issued in her name. Huff admitted renting the van to go on vacation with her children in Nebraska and offered to pay back the money. Further investigation by Ghidorzi officials uncovered additional unauthorized charges, including $2,000 for a used car and stereo equipment Huff said she purchased for a boyfriend in Chicago.

For more:  http://www.stevenspointjournal.com/article/20121228/SPJ0101/312280278/Sentencing-set-woman-charged-hotel-thefts?odyssey=mod|newswell|text|FRONTPAGE|s

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by | December 27, 2012 · 10:09 am

Hospitality Industry Legal Risks: Family Of Man Who Died At "After-Hours Party" Files "Wrongful Death" Lawsuit Against Washington Restaurant; Victim Was "Over-Served" Alcohol, Did Not Receive Assistance

“…The injury occurred during an after-hours party hosted by the establishment’s general manager, who allegedly gave Lee liquor and marijuana…(the lawsuit alleges) that the restaurant broke the law by hosting an Alcohol Drink Responsiblyafter-hours party and put Patrick Lee in danger by over-serving him liquor, then failing to summon assistance when he was injured…”

The father of a man who died after allegedly falling and hitting his head during a party at a Puyallup restaurant has filed a wrongful-death lawsuit against the business. Attorneys for David Lee filed the lawsuit on his behalf this month in Pierce County Superior Court.

Lee is the father of Patrick Lee and the representative of the younger man’s estate. He seeks unspecified damages from Mis Tres Amigos, a family-owned Mexican restaurant with locations in Puyallup and Lakewood.

Patrick Lee, 22, died in November 2010 allegedly after becoming extremely intoxicated at the restaurant, the lawsuit states.

Instead of summoning help for Lee, the general manager and one of Lee’s friends “left him in a booth and continued to party,” the lawsuit alleges.

Lee was found the next morning unresponsive and having difficulty breathing. The general manager and Lee’s friend took him to Good Samaritan Hospital in Puyallup. He eventually was transferred to Harborview Medical Center in Seattle, where he was declared brain dead and removed from life support.

Read more here: http://www.thenewstribune.com/2012/12/25/2414300/man-sues-puyallup-eatery-says.html#storylink=cpy

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by | December 26, 2012 · 6:57 am

Hospitality Industry Legal Risks: Workplace Discrimination Lawsuits Increase As Companies Employ "Ethnically Diverse Labor Force"; Hotel Worker Mocked For His "Accent" Awarded $500,000 Settlement

Earlier this year, an Iraqi hotel worker in Phoenix won a $500,000 settlement from the Four Points Sheraton. EEOCHe claimed his co-workers mocked his accent and called him derogatory names. According to the EEOC, the worker’s managers didn’t take his complaints seriously, which made his workplace situation intolerable.

Workplace discrimination complaints based on national origin, including those involving language ability, increased by 76 percent from 1997 to 2011, according to the EEOC. The agency says the trend reflects a more ethnically diverse labor force.

Civil rights advocates say workplaces have become more hostile toward workers who don’t speak perfect English.

“There’s definitely a climate of fear that’s bad for everyone,” John Mejia, legal director for the American Civil Liberties Union (ACLU), told Insurance Journal.

Some workers have won large settlements in accent-related lawsuits.

For more:  http://www.insidecounsel.com/2012/12/26/accent-related-discrimination-suits-on-the-rise-sa

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by | December 25, 2012 · 8:25 am

Hospitality Industry Legal Risks: Oregon Restaurant Employee Awarded $70,000 In "Unlawful Employment Practices" Lawsuit; Woman Claimed Discrimination After Filing For Workers' Compensation

“…the (plaintiff) was placed in a position to work near heat, which caused a re-blistering of the wound, according to the lawsuit…(her) physician contacted the worker’s compensation carrier again to say she was to Hospitality Industry Lawsuitwork on modified duties without exposure to heat, the lawsuit states KFC continued to expose Vargas to heat in the workplace…”

“…her physician instructed her not to return to work because KFC was not able to follow the modified duty requirement. Vargas then told her employer she could not return to work until her burn healed…two days later, KFC terminated her employment, stating that Vargas had resigned…”

A Salem woman was awarded more than $70,000 after a lawsuit she filed against Chick Inc., the Salem company that owns three KFC franchises, for unlawful employment practices. Jurors unanimously found in favor of plaintiff Sarai Vargas, who claimed she was wrongfully discharged and that she experienced discrimination after filing for workers compensation because of a workplace burn. A four-day trial ended Dec. 14.

While wearing protective gloves, Vargas suffered second-degree burns after grease splattered on her right arm as she pulled chicken from the grill oven May 9, 2010, Vargas’ lawyer Larry Linder said.

Vargas was treated by a doctor for the burn and was cleared to return to work on a modified duty, which included light activity with no exposure to heat, Linder said.

For more:  http://www.statesmanjournal.com/article/20121225/NEWS/312250021/Woman-who-took-KFC-court-wins-70-000

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by | December 24, 2012 · 7:32 am

Hospitality Industry Employment Risks: South Carolina Restaurants Ordered To Pay $391,000 In Back Wages To Workers; Servers Paid Below Mandated $2.13 Per Hour And Received Tips Only

“…the restaurants agreed to maintain future compliance with the FLSA by keeping accurate records of employees’ work hours, wages and other required employment information; paying all employees at least the Hospitality Industry Wage and Hour Litigationfederal minimum wage; and providing overtime compensation and informing employees in advance that the tip credit will be used…”

Three restaurants in South Carolina have been ordered to pay $391,000 in back wages to workers, as the result of a Department of Labor investigation. The restaurants, all individually owned branches of the San Jose Mexican restaurant chain, owe 37 employees wages for overtime and minimum wages. The DOL’s Wage and Hour Division also found violations in record-keeping provisions.

Following widespread noncompliance in the state’s restaurant industry, the Wage and Hour Division began a multiyear enforcement initiative. Since 2009, more than $2.5 million has been paid to workers, following 2,500 investigations.

All three of the restaurants failed to properly compensate employees. Servers were paid below the mandated $2.13 per hour and made to rely on tips for pay. Other employees were paid flat salaries below the minimum wage requirements, with no regard to hours worked.

For more:  http://ohsonline.com/articles/2012/12/21/three-restaurants-must-pay-391000-in-employee-back-wages.aspx?admgarea=news

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by | December 23, 2012 · 8:00 am

Hospitality Industry Legal Risks: Connecticut Hotel Guilty In "Wrongful Death" Lawsuit Filed By Family Of Man Killed By Hotel Van; Jury Awards $2.3 Million For Driver's Negligence

The jurors ruled both Coleman and Campos were at fault in the accident. But the jurors said Coleman, and thus LaQuinta as well, were responsible for 58 percent of the negligence and Campos was responsible for 42 Hospitality Industry Lawsuitpercent…the (victim) was found to share some of the negligence probably because “no one can say for sure” if he obeyed a stop sign…the (driver) did not have a stop sign…”

“…The lawsuit also alleged (driver) was using a cellphone in violation of state law…the jurors awarded $1,709,840 in damages to the victim’s estate and $580,000 in damages to the widow…”

The family of Jose Mauricio Campos Thursday won a jury verdict of nearly $2.3 million in a wrongful death lawsuit against a hotel corporation and its employee, the driver of a van that struck Campos. Campos, 52, was riding a bicycle at about 6:45 p.m. Sept. 15, 2008 when he was hit by the van, operated by Robert Edward Coleman, near the intersection of Westfield and Gilbert streets in West Haven.

Coleman was a defendant in the civil suit, along with his employer, LaQuinta Inn and Suites, owned by LQ Management. He and the corporation were found to be equally liable.

Campos, who was not wearing a helmet, was thrown to the pavement by the impact and suffered a serious head injury. He died three days later at Yale-New Haven Hospital after emergency surgery. The plaintiff was his wife, Gregoria Campos of West Haven. The Camposes had three sons, now adults.

For more:  http://nhregister.com/articles/2012/12/22/news/new_haven/doc50d67c73417dd288959464.txt

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by | December 18, 2012 · 7:40 am

Hospitality Industry Insurance Risks: Workers' Comp Insurance Fraud Costs Businesses $7.2 Billion Annually

In 2007 State Fund discovered Safehome Inc. was under reporting their employee payroll to avoid paying the proper premium. An audit was completed and indicated that Safehome Inc. had failed to pay the proper workers compensation insurancepremiums for their workers’ compensation policy in the amount of $477,285. Additionally, State Fund determined the business was operating out of its classification, and related payroll was never reported to either State Fund or EDD, according to investigators.

“…the three types of most common workers’ comp fraud – injured worker fraud, provider fraud and premium fraud – haven’t changed much…”

Workers’ compensation fraud costs businesses $7.2 billion annually, roughly a fifth of all workers’ compensation payments, according to the National Insurance Crime Bureau.

In the past, it’s been challenging to prosecute workers’ compensation fraud, but recently passed legislation is making it easier for agencies like State Fund to work together to fight fraud. In June, as a result of a joint task force that included State Fund, more than 100 enforcement actions were taken against companies for failure to comply with state contracting, insurance and payroll requirements.

And earlier this year, State Fund partnered with other agencies on a fraud case that resulted in a conviction with restitution orders to both State Fund and the Employment Development Department.

For more:  http://www.insurancejournal.com/news/west/2012/12/12/273777.htm

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by | December 16, 2012 · 9:14 am

Hospitality Industry Insurance Risks: Pending Legislation Before Congress Deals With Medicare Payments, Workers' Compensation And Liability Insurance Claims

“…the Medicare Secondary Payer and Workers’ Compensation Settlement Agreements Act of 2012…deals only with workers’ compensation claims, and seeks to establish clear and consistent rules for workers’ workers comp medicalcompensation set-asides for claimants covered by Medicare…”

“…The Strengthening Medicare and Repaying Taxpayers Act…deals with issues related to the Medicare Secondary Payment Act. Specifically, it deals with mandates for providing timely information on conditional payments, penalties and statutes of limitations when claims are reported to the Centers for Medicare and Medicaid Services by insurers and self-insured and third-party payers on no-fault auto-insurance claims, workers’ compensation claims, and claims under liability insurance…”

Insurance and related industries are seeking to win support in the waning days of the current Congress for two pieces of legislation dealing with payment of injured worker claims to people whose primary insurance is Medicare. Officials of both the American Insurance Association and the Property Casualty Insurers Association of America are urging action on the bills this year.

Nathaniel Wienecke, PCI senior vice president, Wednesday asked officials of the Senate Finance Committee and the House Ways and Means Committee if it could act on the bill this year.

Currently, workers’ compensation claims that overlap with Medicare coverage are subject to lengthy, cumbersome review by the Centers for Medicare and Medicaid Services to establish the proper “set-side” coverage amounts for future medical expenses, according to PCI officials.

For more:  http://www.propertycasualty360.com/2012/12/14/insurance-reps-push-for-action-on-medicare-seconda?t=commercial

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by | December 15, 2012 · 12:59 pm

Hospitality Industry Legal Risks: Restaurant Owners Should Provide Comprehensive Employee Handbooks That Describe Employees' Rights, Expectations And Company Obligations

Small Business AdministrationAn employee handbook is an important communication tool between you and your employees. A well-written handbook sets forth your expectations for your employees, and describes what they can expect from your company. It also should describe your legal obligations as an employer, and your employees’ rights. This guide will help you write an employee handbook, which typically includes the topics below.

Anti-Discrimination Policies

Compensation

Work Schedules

  • Work hours and schedules
  • Attendance, punctuality and reporting absences
  • Guidelines for flexible schedules and telecommuting.

Standards of Conduct

  • Dress code and ethics
  • Legal obligations

General Employment Information

Safety and Security

For more: http://www.sba.gov/content/employee-handbooks

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by | December 13, 2012 · 7:42 am

Hospitality Industry Employment Risks: California Restaurants In "Well-Known Tourist Areas" Investigated By U.S. Dept. Of Labor Agree To Pay $670,000 In "Unpaid Minimum Wages And Overtime"

“…(Wage and Hour Division investigators)…found widespread labor violations among restaurants in well-known tourist areas in San Francisco and throughout Los Angeles County…culture of noncompliance Hospitality Industry Wage and Hour Litigationadversely impacts the wages and working conditions of many low-wage, vulnerable workers…”

Wage and Hour Division investigators with the U.S. Department of Labor conducted comprehensive reviews of payroll records and employment practices in both San Francisco and Los Angeles, in addition to employee interviews, and found that restaurants were violating minimum wage, overtime and record-keeping provisions.

As a result, 273 restaurant workers will divvy up $672,333 in unpaid minimum wages and overtime compensation, according to the feds.

The Fair Labor Standards Act requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as time-and-a-half of their regular rates for hours worked over 40 per week. The law also says employers must keep accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law. If employers don’t abide by these rules, they are liable to pay back wages and an equal amount in liquidated damages to employees.

For more:  http://blogs.sfweekly.com/thesnitch/2012/12/restuarant_workers_wage_and_hour_division.php

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