Category Archives: Labor Issues

by | February 2, 2012 · 6:46 am

Hospitality Industry Legal Risks: Texas Hotel Employee Files "Trip-And-Fall Lawsuit" For Negligence In "Failing To Secure Floor Covering During Construction"

 “…Gonzales was working at the Holiday Inn on Walden Road when she tripped over a loose floor covering placed in the area where ISC was contracted to perform repair work…Gonzales is suing for her past and future mental anguish, pain, medical expenses and lost wages, plus exemplary damages…”

A trip-and-fall lawsuit, which was slated to be tried in December, will now be tried in May. Holiday Inn employee Carol Gonzales filed suit against Insurance Services Construction on Oct. 20, 2010, in Jefferson County District Court, alleging the company negligently failed to securely fasten a floor covering while performing work at the hotel.

International Catastrophe Solutions was later added as a defendant, court papers say. On June 22 Gonzales filed a motion for continuance, asking that the case be continued “for a couple of months based on the fact that ICS has still not” officially answered the suit, the motion states.

A hearing on the matter was held Aug. 22. Judge Bob Wortham, 58th District Court, decided to take no action on the motion. However, on Nov. 16 an amended discovery control plan order was entered in the case, bumping the case from the court’s December docket to the May.

For more:  http://www.setexasrecord.com/news/241507-trip–fall-trial-bumped-to-may

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by | January 30, 2012 · 9:07 am

Hospitality Industry Legal Risks: Hotel Owners And Management Will Face Numerous Compliance And Regulatory Issues In 2012

“The biggest issue hotel managers face in the coming year vis-à-vis the law is compliance with the myriad applicable statutes, rules and duties owed…”

A hotel faces potential legal consequences for all of the following:

  • negligence in the maintenance of its premises
  • failure to comply with the Fair Labor Standards Act (minimum pay, overtime pay, equal pay, child labor)
  • discrimination against employees based on minority status
  • denial of services to guests perceived as illegal discrimination
  • contending with internet reviews, disagreements with a franchisor
  • overstepping bounds with unions
  • misapplying tip pools
  • eradicating bed bugs and other pests
  • dram shop violations
  • food issues
  • security concerns
  • insufficient insurance
  • trademark and copyright violations
  • securing and maintaining necessary business licenses
  • tax obligations
  • sanitation issues in spas
  • contract disagreements with suppliers
  • guests’ rights to privacy
  • SEC mandates
  • Managing employees to ensure compliance with all of the above, and much more.

For more:  http://www.hospitalitynet.org/news/154000320/4054640.html

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Filed under Claims, Guest Issues, Insurance, Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management

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by | January 29, 2012 · 7:10 am

Hospitality Industry Safety Risks: Texas Restaurants Receive "Dividends" Back From Workers Compensation Insurance Program For Maintaining "Successful Safety Programs"

“…dividends come back to restaurants participating in the TRA’s workers comp insurance program… creates incentives for the restaurants to have a safety program and to work with the insurance company and the employees to maintain a safer workplace….”

“Every year we get back … a little over half of our premium that we paid. So, it’s a big return of an expense,” says Lindskog whose company has been in the program since 2004. “A lot of people don’t want workers comp insurance because it’s expensive. But if you get half of it back, it makes it much more cost effective for your restaurant.”

Texas Mutual is the leading provider of workers comp insurance in the state. It was created by the Texas Legislature in 1991 when major reforms on workers comp became effective. Its board of directors is composed of individuals from companies it insures as well as those appointed by the governor of Texas.

For more:  http://www.bizjournals.com/sanantonio/news/2012/01/25/san-antonio-restaurants-score-rebate.html?page=2

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by | January 28, 2012 · 6:33 am

Hospitality Industry Employee Risks: Florida Hotel Employee Arrested For "Grand Theft" Of Laptops And Smartphones Over Past 18 Months

After nearly a year and a half, Orange County detectives have cracked a case they said involves thousands of dollars in theft from convention-goers and exhibitors at the Rosen Shingle Creek Resort.

Rodney Hyppolite was arrested this week and charged with grand theft in the case. Some of the crimes he’s accused of date back to August 2010.

Police reports show Hyppolite admitted to stealing laptops, smartphones and other electronics while he was working at the International Drive-area hotel.

He’s also charged with theft from a local Lowe’s store. Cops said Hyppolite profited by selling the electronics at a variety of local pawn shops — mostly Cash America locations. Investigators even matched the suspect’s fingerprints to documents from the pawn shops before getting his confession.

For more:  http://www.wftv.com/news/news/local/sheriff-employee-busted-serial-thief-rosen-resort/nHJfh/

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Filed under Crime, Guest Issues, Insurance, Labor Issues, Management And Ownership, Risk Management, Theft

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by | January 26, 2012 · 1:02 am

Hospitality Industry Employee Risks: Texas Hotel Sued By Former Restaurant Manager For "Retaliation" After Family Leave Of Absense

“… the company denies that Wike was fired in retaliation for taking time off under the FMLA…”

Back in November, the former restaurant manager for the Overton Hotel filed a labor lawsuit, claiming she was fired in violation of the Family and Medical Leave Act. On Wednesday, the management company for the Overton, 1859 Historic Hotels Ltd., responded.

Kerri Wike claims she never had a bad job review prior to taking leave to care for her mother in the summer of last year. She claims that when she came back to work on Sept. 1, she was given the choice to resign or be fired.

The Overton says, “All actions taken by the Defendant were in good faith, were made in conformance with applicable law, were taken based on reasonable grounds for believing that its actions were not in violation of law, and were for legitimate, nonretaliatory reasons.”

For more:  http://www.kcbd.com/story/16603000/overton-hotel-responds-to-lawsuit-by-former-manager

Other than denying retaliation, the Overton’s response is not specific as to why Wike was fired.

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by | January 22, 2012 · 8:39 pm

Hospitality Industry Property Risks: Wisconsin Hotel "Stairwell Pipe Bursts" On Seventh Floor Damaging Eight Rooms

“… a pipe broke in a stairwell. Water poured out for at least ten minutes and ended up in the basement of the hotel.  Eight guest rooms had water logged carpets which will have to be torn out…”

The Pfister Hotel is dealing with a mess after a pipe burst and several rooms flooded Saturday. Clean up crews spent the day at the historic hotel in downtown Milwaukee Saturday.

Fans were brought in to help dry out other areas. The hotel itself is still open.  But the burst pipe foiled Tammy Spoek’s day at the hotel’s spa.  “I was down at the spa and i was hearing that there was water. Water’s coming from the ceilings. So she came to me and said Tammy, I’m really sorry but we’re going to have to cancel your appointment,” Tammy said.

Spoek says it appeared the pipe broke somewhere near the seventh floor.

Hotel management says they believe the burst pipe is due to the cold temperatures the last few days.

The Pfister’s computer system apparently went down.  But the hotel and its restaurants did remain open.

For more:  http://www.620wtmj.com/news/local/137827354.html

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by | January 19, 2012 · 6:47 am

Hospitality Industry Legal Risks: "Class-Action Lawsuit" Filed Against New York Hotel And Water Park For "Norovirus Outbreak" Stemming From "Contaminated Food And Pool Water"

“…The state Department of Health documented more than 600 cases of norovirus in March 2008, apparently stemming from contaminated food and pool water at the park’s hotel complex…”

“…alleges that Great Escape, and its parent company Six Flags Inc., failed to maintain proper sanitary conditions and didn’t warn guests once the outbreak became known…”

Attorneys representing more than 100 people filed a class-action lawsuit Wednesday in state Supreme Court in Warren County against the Six Flags Great Escape Lodge & Indoor Waterpark over a 2008 norovirus outbreak.

“Here, many people, especially children, suffered brief but violent periods of illness,” said Don Boyajian, one of two attorneys representing those who were infected.

Those infected experienced brief but violent fits of vomiting and diarrhea.

Dozens of people filed lawsuits following the incident. Those claims were consolidated into a single case — the class-action lawsuit, which has been in the works since 2009.

Boyajian did not specify the amount of damages being sought. He said damages would depend on the virus’ impact on each individual.

Attorneys representing Great Escape were not available on Wednesday for comment.

Read more: http://poststar.com/news/local/class-action-lawsuit-filed-against-great-escape-over-norovirus-outbreak/article_997adaa2-4226-11e1-8bea-0019bb2963f4.html#ixzz1juoN2fka

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by | January 18, 2012 · 1:42 am

Hospitality Industry Legal Risks: Restaurant Group Loses Appeal To Supreme Court Over "Minimum Wage" Lawsuit Regarding "Underpayment Of Tip Income"

Many…employees claimed that, because they spent more than 20% of their time performing duties such as cleaning and prepping, they should earn full minimum wage during hours worked without tips.

Applebee’s turned to the Supreme Court in October seeking to overturn an earlier ruling from a federal court of appeals in Missouri allowing the case to proceed to trial in September. The company claims that prep work and cleanup is part of employees’ tip-earning responsibilities.

The Supreme Court on Tuesday turned down an appeal from Applebee’s International Inc., which is battling a lawsuit from more than 5,500 bartenders and servers accusing the restaurant chain of underpaying them.

The high court declined to hear Applebee’s case, which focuses on a practice in which restaurants pay employees reduced minimum wage by factoring in the extra boost provided by tips.

Known as a “tip credit,” the practice is banned in states such as California and Minnesota but permitted in Missouri, where many of the plaintiffs work.

For more:  http://www.latimes.com/business/money/la-fi-mo-applebees-supreme-court-20120117,0,6981441.story

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by | January 16, 2012 · 7:13 am

Hospitality Inudustry Insurance Risks: Restaurants Are Adding New "Business Innovations" That May Not Be Covered By Existing Insurance Coverages

“…Many (restaurants) are turning to innovations to grow their business. While that can be a plus for their balance sheets, it can also open the door to unexpected liabilities that their insurance policies were not designed to cover…”

Agents can head off this scenario and build a strong consultative relationship with their restaurant customers by asking key questions at renewal time. Here are some of the trends that could put restaurants at risk and the questions agents should ask their restaurant customers :

  1. Mobility. Has the restaurant added new services, such as delivery of meals using hired drivers with their own cars?
  2. Branch out businesses. Has the restaurant started a new line of business, such as catering?
  3. Trendy foods. Has the restaurant introduced new menu offerings as part of the strategy for attracting more customers, such as locally sourced foods, an emphasis on organic ingredients or assurances about non-allergenic ingredients?
  4. Additional payment methods. Is the restaurant accepting new methods of payment, such as online credit charges or smartphone purchasing?

All too often, the lack of appropriate coverage only becomes evident when a mishap occurs and a claim is filed. After someone has already threatened to sue for damages is usually a bad time for restaurant owners to discover they should have consulted with their insurance agent about their insurance needs before changing their business model.

For more:  http://www.propertycasualty360.com/2012/01/12/4-trends-that-can-put-restaurants-at-risk

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by | January 15, 2012 · 1:05 am

Hospitality Industry Legal Risks: Texas Hotel Sued By Family Of Housekeeper Who Died Falling Down Service Elevator Shaft; State Required Inspection Two-Weeks Overdue

“…Gloria Rodriguez, 65, had been an employee at the Crockett Hotel for 12 years when she fell six stories down the service elevator shaft Dec. 28. The elevator’s state-required annual inspection was more than two weeks overdue at the time…”

The family of a Crockett Hotel housekeeper who plunged to her death down an open elevator shaft last month has filed a wrongful death lawsuit.

Named in the suit are New Jersey-based Otis Elevator Company and 1859-Historic Hotels Ltd., a Galveston-based company that owns the Crockett Hotel and the nearby Menger Hotel in downtown San Antonio.

“Based upon current information, it is believed that she attempted to get on the elevator but when the doors opened there was no elevator, causing her to fall,” Houston-based attorney James Hada wrote in the suit, filed Wednesday.

Read more: http://www.mysanantonio.com/news/local_news/article/Wrongful-death-suit-filed-for-fatal-elevator-2519149.php#ixzz1jSJFD4KN

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