Category Archives: Labor Issues

by | March 24, 2012 · 7:41 am

Hospitality Industry Legal Risks: Arizona Restaurant Chain Found Guilty Of "Pregnancy Discrimination" In Suit Brought By EEOC

“The EEOC would like to remind employers that pregnancy discrimination has been illegal for decades, and violations of the law will be met with rigorous enforcement by our agency.”

 The manager admitted in sworn testimony that he had made that statement, having been told by a company official that he could not hire pregnant women.

An Arizona federal jury returned a verdict against High Speed Enterprise, Inc., a corporation that owns five Phoenix-area Subway restaurants. The jury awarded damages to Belinda Murillo, a job applicant who claimed she was refused a position solely because she was pregnant. The suit was brought by the U.S. Equal Employment Opportunity Commission (EEOC).

According to the lawsuit, EEOC v. High Speed Enterprise, Inc. dba Subway, Murillo applied for a job at a central Phoenix Subway in May 2006. Later that month she met with the general manager who asked if she was pregnant. She said yes.

EEOC says that the manager told the applicant, “We can’t hire you because you’re pregnant.” She also reminded pregnant women that it is against the law for employers to fire them or treat them differently because they are expecting.

For more:  http://safety.blr.com/workplace-safety-news/safety-administration/Disabilities-ADA/Jury-Decides-Against-Restaurant-Owner-in-Discrimin/

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by | March 18, 2012 · 7:56 am

Hospitality Industry Employment Risks: Hotel Management Must Use Consistent Hiring And Firing Procedures To Prevent "Age Discriminiation Lawsuits"

  • Initial screening: Make sure those responsible for selecting interview candidates don’t have access to information about applicants’ race, age, sex or other protected characteristics. That alone will prevent many failure-to-hire claims. HR should take the lead and prepare applicant summaries for hiring managers to screen that contain no tell-tale information about protected characteristics. That may mean even excising names, using a candidate number instead.
  • Who hires and fires: The same individual responsible for the final decision to hire an applicant should also make the decision to fire that individual if necessary. This helps dispel the notion that a protected characteristic like race or age had anything to do with the decision. After all, why would someone hire an applicant who belongs to a protected class then turn around and fire the same person because of her race, sex, age, etc.?
  • Training: Track training to make sure each employee has the opportunity to improve job performance. Note any training offers and the employee’s response.
  • Informal audit: Review your labor pool regularly. Look for patterns that may indicate hiring bias. For example, are all employees in a particular job under age 40? If so, find out why.

For more:  http://www.businessmanagementdaily.com/29524/use-consistent-hiring-firing-processes-to-knock-down-age-discrimination-claims

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by | March 16, 2012 · 12:34 pm

Hospitality Industry Legal Risks: Hotels Granted "11th Hour" Reprieve In Americans With Disabilities Act (ADA) "Pool Lift Compliance" Mandate

 “…The federal government sought to make public pools, including hotel pools, accessible for people with disabilities in 2010. There are about 51,000 hotels in the USA, and the majority have some kind of a pool…”

The U.S. Justice Department will grant the hotel industry at least a 60-day extension for complying with a new rule aimed at making existing hotel pools compliant with the 22-year-old Americans With Disabilities Act. It’s a decision that the hotel industry lobbied hard for at the 11th hour, as a number of hotel owners and managers suggested they might close their pools or fill in their whirlpools due to the uncertainty the new rules created.

For more:  http://travel.usatoday.com/hotels/post/2012/03/hotel-pool-lifts-deadlines-her-confusion-persists/648998/1

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by | · 8:14 am

Hospitality Industry Legal Risks: Virginia Hotel Sued For $12 Million By Family Of Woman Killed By Valet Driver

“…A multi-million dollar lawsuit is filed in Richmond Civil Court, by the husband of the woman killed outside of a downtown Richmond hotel, allegedly by a valet driver for that hotel…Court documents say that (the valet) pulled out of the driveway of the hotel and instead of turning onto the street, he turned left down the sidewalk and ran right into (the woman)…”

“…Among those named in the suit is the Hilton Garden Inn. And the valet company employed at the hotel…”

In (the civil lawsuit) — Stone’s husband, John, lays out the pain, sorrow and anguish he’s been dealing. Stone died just a few days before their wedding anniversary. The suit says Josephine Stone’s death was a direct result of the negligence, recklessness and a conscious disregard for her rights and safety. The total amount wanted: more than 12 million dollars.

The Hilton released this statement, saying, “We deeply regret the tragic loss of any life especially this promising young person. We continue to work with the third party operator, parking management services, on this matter and will continue to cooperate with local authorities as we have done since this tragic accident. We continue to keep the stone family and friends in our thoughts and prayers.”

Gray is facing a involuntary manslaughter charge as well. That is set to go to a trial on May 25th.

For more:  http://www.nbc12.com/story/17170161/civil-lawsuit-filed-in-woman-killed-outside-richmond-hotel

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by | March 15, 2012 · 8:23 am

Hospitality Industry Legal Risks: California Hotel Owners Compliance With Americans With Disabilities Act (ADA) "Pool Lift Regulations" Is Effective March 15; Vulnerable To "Unruh Civil Rights Act" Violation Lawsuits

“…California-based businesses should be particularly worried.  The Unruh Civil Rights Act, itself a wellspring for abusive litigation, incorporates the ADA by reference, making any violation of the ADA also a violation of Unruh…Unruh has more teeth than the ADA—$4,000 per violation, regardless of intent, plus attorney’s fees…”

 The Department of Justice granted the industry’s call for a clarification: But it was not the answer they wanted. All 300,000 public pools in the United States must install a permanent fixed lift. The deadline for compliance is tomorrow, March 15. Call it “Poolmageddon.”

There is no way all 300,000 pools can install permanent lifts by Thursday. There simply are not enough lifts in existence or enough people who know how to install them, according to industry spokesmen. Plus, each lift costs between $3,000 and $10,000 and installation can add $5,000 to $10,000 to the total.

The Administration has assured the industry that it does not plan to enforce the new guidelines right away.  But the ADA contains a private enforcement mechanism, empowering private attorneys to bring suit immediately, collecting attorney’s fees from violators.  As the article mentions, trial lawyers contributed over $45 million to Obama’s campaign.

For more:  http://ordinary-gentlemen.com/timkowal/2012/03/15/new-ada-guidelines-expose-pool-operators-to-private-lawsuits/

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by | March 14, 2012 · 2:41 am

Hospitality Industry Theft Risks: California Hotel Security Guard Charged With "Grand Theft And Burglary"; Accessed Online System To Steal Guest's Valuables

“…In his part-time security job for the hotel, Quinton was entrusted with access to an online lost and found system, which he is suspected of looting…”

“…In addition….(he) covered surveillance cameras in the hotel security office and stole $680 in cash from an office safe…”

A Los Angeles Police Department officer moonlighting as a security guard at Laguna Beach’s Surf & Sand Resort is to be charged with grand theft and burglary, the district attorney’s office said on Tuesday. Laguna Beach police, who had set up surveillance cameras within the hotel after its staff reported irregularities that began in October, arrested Quinton on Jan. 24, Lt. Jason Kravetz said.

When police arrested Quinton on Jan. 24, he had disappeared for over an hour during his shift, including from surveillance cameras police were monitoring in a spare hotel room, stealing $290 in bedding from a locked hotel storage room, and storing the items in his car. Detectives who went to Quinton’s home after the arrest seized more property, Kravetz said.

Hotel staff aided the investigation with monitoring cameras while detectives observed the employee from a hotel room. “We wanted to make sure we had a really solid case,” said Kravetz, who pointed out that most Orange County law enforcement agencies prohibit sworn officers from moonlighting in security posts or jobs involving alcohol. In Los Angeles County, officers have a long history of moonlighting as security for celebrities, he pointed out.

In October, Quinton allegedly stole cash that had been recovered from a room and secured in the hotel’s lost and found by accessing the online system and changing the cash entry into a “gold watch.” He is suspected of changing the room number where the $2,000 in cash had been found and falsely logging that the watch was returned to its owner, stealing $960 from the safe, Kim’s statement said.

For more:  http://www.lagunabeachindependent.com/2012/03/13/moonlighting-cop-charged-hotel/

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by | March 12, 2012 · 7:32 am

Hospitality Industry Legal Risks: Washington Hotel And Restaurant Sued By Fired Waiter For "Discrimination, Disparate Treatment And Infliction Of Emotional Distress"

“…He contends Matt Stickle, executive chef of the hotel’s Bite restaurant, belittled him in front of customers and co-workers and that the Murano’s managers did nothing to rectify the situation when he complained. Conteh, who immigrated to the United States from Africa, contends he was treated hurtfully and unfairly because he’s black…”

A Pierce County man is suing Tacoma’s Hotel Murano and the executive chef of its high-end restaurant, contending they discriminated against him when he worked there as a waiter. Muhammed Conteh filed his lawsuit last week in Pierce County Superior Court. Conteh seeks unspecified damages for discrimination, disparate treatment and the infliction of emotional distress.

Conteh contends, among other things, that Stickle “continuously harassed plaintiff about his personal smell and would physically smell the plaintiff and embarrass him in front of customers,” according to the suit.

Conteh said he also was punished for using the kitchen telephone and engaging in horseplay with colleagues. White co-workers who engaged in similar behavior were not disciplined, he contends.

Conteh was fired in January after working at the restaurant for eight years. He has been unemployed since, said his lawyer, Thaddeus Martin.

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by | March 9, 2012 · 7:15 am

Hospitality Industry Legal Risks: California Hotel Owner Charged With "Insurance Fraud" Over False Workers' Compensation Records

“…accusations that he dissuaded an employee from seeking workers’ compensation after a work injury and making false claims. The charges against him include two counts of insurance fraud, failure to maintain workers’ compensation insurance and passing bad checks…”

“…accused of paying approximately $890,000 less than he should have over a four-year period,,,”

The trial date for the owner of the troubled Brookdale Inn & Spa has been postponed because the District Attorney’s Office has filed more charges. Sanjiv Kakkar originally was scheduled to begin trial March 12 on accusations that he dissuaded an employee from seeking workers’ compensation after a work injury and making false claims. The charges against him include two counts of insurance fraud, failure to maintain workers’ compensation insurance and passing bad checks, according to Kelly Walker, a prosecutor with the Santa Cruz County District Attorney’s Office.

Walker has just filed new insurance fraud charges against Kakkar and his wife, Neelam Kakkar, pertaining to insurance premiums. Kakkar is accused of providing false wage information to insurance companies to obtain lower premiums. In other words, he “grossly understated” the amount of payroll he was paying to his employees. He stands accused of paying approximately $890,000 less than he should have over a four-year period, according to Walker.

For more:  http://www.mercurynews.com/breaking-news/ci_20133381/das-office-files-more-insurance-fraud-charges-against

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by | March 7, 2012 · 1:46 am

Hospitality Industry Employment Risks: Hotel Management Compliance Audits Can Expose Potential Labor Department "Wage And Hour Division" Violations

• Make sure nonexempt employees are paid the required minimum wage. The current federal rate is $7.25 per hour (some jurisdictions require a higher rate).  Review deductions to ensure that they do not cut employees’ pay below the minimum wage.
• Be certain nonexempt employees are paid the required overtime. Ensure that all bonuses, shift differentials, service charges and other payments are properly included in computing overtime and that deductions do not improperly cut into overtime pay. 
• Pay special attention to whether nonexempt employees accurately record all worktime. Nonexempt employees must record pre- and post-shift work; shift-change overlap; opening or closing activities; compensable training time, meeting time, “on-call” work; and time spent doing work at home. Employees must record meal time and other non-compensable break time, and they must be paid when they do not take that time off. 
• Be sure that all “exempt” employees meet the requirements for exemption. Review the criteria defining who may be treated as exempt from the Fair Labor Standard Act’s minimum-wage and/or overtime requirements. “Salaried” employees are not necessarily exempt. Certain positions such as sous chefs and sales managers are vulnerable to challenge. 
• Make certain that exempt employees are paid on a salary basis. The most common FLSA exemptions require that such employees be paid on a “salary basis” and thus receive a fixed, predetermined amount for every workweek in which the employee performs any work, without regard to the number of days or hours worked or the quality of work. Salary deductions are very limited. 
• Strictly comply with child-labor restrictions. There is an age 16 limit for general occupations and an age 18 limit for occupations declared “hazardous” by the U.S. Secretary of Labor. 14 and 15 year olds may be employed in limited occupations, within strict hours and times of day limitations. Identify every employee who is 16 or 17, verify his or her age and exact duties. Identify every employee under 16, verify his or her age, exact duties and hours and times of work.
• Comply with all state and local wage-hour requirements. The FLSA does not preempt tougher state or local provisions. These other laws might include a higher minimum wage; daily overtime; minimum pay for reporting to work; more rigorous child-labor limitations; prohibitions on wage deductions; and time limits for paying employees who resign or are fired.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7679/Government-audits-Get-your-house-in-order

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by | March 5, 2012 · 8:43 am

Hospitality Industry Legal Risks: Illinois Hotel Sued For $75,000 By Woman Claiming Bartender Drugged And Sexually Assaulted Her

“…The bartender got a key to the woman’s room from the front desk staff and sexually assaulted her as she was passed out in the room, according to the lawsuit…”

“…The suit names the hotel as the defendant, claiming the staff was negligent in allowing the bartender access to the woman’s room. The suit seeks payment in excess of $75,000 plus the cost of court fees…”

A Virginia woman filed a lawsuit against a Lisle hotel claiming a bartender drugged her drink and later sneaked into her room with the help of a front desk clerk and sexually assaulted her.

The lawsuit, which was filed in federal court Wednesday, claims a 31-year-old bartender slipped a date-rape drug into the woman’s drink while she was at the Lisle-Naperville Hilton on Oct. 27. The woman began to feel ill at around 1:30 or 2 p.m. and went up to her room before her food had arrived at the hotel bar, said her attorney Jeffrey Deutschman.

For more:  http://www.dailyherald.com/article/20120229/news/702299617/

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