Category Archives: Labor Issues

by | December 25, 2011 · 9:22 am

Hospitality Industry Alcohol Risks: Hotels And Restaurants Hosting "Office Parties And Charity Events" Need To Insure Against "Liquor Liability"

“…office parties and charity events…can provide opportunities for professionals to mingle casually with their co-workers and clients and can help boost employee morale…(but) they can also prove to be a liability for businesses that serve alcohol…”

“…when business owners host a holiday party and serve alcohol as part of the festivities, liquor liability would most likely be covered by their commercial general liability (CGL) policy…”

 “…In addition to a CGL policy, businesses should also consider purchasing an Employment Practices Liability Insurance (EPLI) policy. An EPLI policy will protect a business from discrimination, sexual harassment, emotional distress, and other workplace-related issues…”

  • Forty-four states plus the District of Columbia have enacted liquor liability laws
  • These laws make it possible for a plaintiff to hold those who serve alcohol to an intoxicated or underage person responsible for any damage or injury caused by these same individuals after they leave the party
  • Most of these laws also offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol
  • There are circumstances under these same state laws where criminal charges may also apply
  • Liquor liability laws were intended originally to apply to taverns, bars, and other establishments selling and serving alcohol

However, the liability laws have expanded over time to include “social hosts” (such as those holding a holiday party in their home or business) in some states giving them some exposure to the risk of liability for serving alcohol.

“If you are throwing an office party where alcohol is served, you have a responsibility to make sure that your employees are capable of driving safely.”

For more:  http://insurancenewsnet.com/article.aspx?id=319206

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by | December 23, 2011 · 6:38 am

Hospitality Industry Employment Risks: California Hotels Must Have Comprehensive Corporate Policies To "Manage" Independent Contractors To Avoid "Steep Penalties" For "Willfully Misclassifying Employees"

On October 9, 2011, Governor Jerry Brown signed California Senate Bill 459 (“SB 459”), which adds sections 226.8 and 2753 to the California Labor Code. SB 459, effective January 1, 2012, imposes steep penalties on employers who willfully misclassify employees.

In light of federal initiatives and California’s enactment of SB 459, hospitality employers should consider taking various steps to evaluate their existing independent contractor relationships:

  • Develop and publish a corporate policy on the engagement of independent contractors and the management of those relationships. As part of this policy, require that approval be obtained from a knowledgeable employee before any independent contractor relationship is established.
  • Train employees who manage independent contractor agreements as to how to work with independent contractor relationships.
  • Ensure that the company has a well-written independent contractor agreement for each contractor, that it is accurate, complete, and individually negotiated.
  • Audit the company’s independent contractor relationships, including a review of any past decisions or determinations concerning independent contractor status.
  • Obtain a written legal opinion from counsel regarding the appropriateness of the classification of workers as independent contractors, based on counsel’s understanding of the specific factual situations at issue.

For more:  http://www.seyfarth.com/publications/Five-Key-Labor-And-Employment-Issues-Hospitality-Employers-Need-To-Be-Aware-Of

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by | December 21, 2011 · 7:17 am

Hospitality Industry Food Safety: "Top Restaurant In America" Fails Inspection By Chicago's "Food Protection Division"; Results Posted On New "Online Reporting System"

“…the most common infraction is improper food temperatures…what’s important is how quickly they are corrected…”

Beginning this November the City of Chicago made it easy for residents to check in on the health and safety record of their favorite restaurants with a robust and detailed web site. At the end of November a surprising entry showed up on the city’s newly launched site: the Michelin-starred Alinea restaurant failed a November 30 inspection.(Full disclosure, their four violations were immediately corrected.)

CLICK ON "CHICAGO" TO VIEW INSPECTIONS WEBSITE

Alinea is often referred to as the best restaurant in America, and its chef, Grant Achatz, draws rock star acclaim for his culinary inventiveness.

But it’s not immune to heatlh department inspections. According to the report on Cityofchicago.org, Alinea was less than stellar on its food safety to close the month of November. No one from Alinea was available for comment by press time.

  • Inspectors observed black mold growing on interior surfaces of the ice machine.
  • Inspectors observed employees failing to properly wash hands.
  • Inspectors observed hazardous food storage of purple cabbage and potato soup.

 All of the items in the November 30 report were corrected immediately, according to Public Health Commissioner Bechara Choucair.

That’s the benefit of the new city website, however. In the past, restaurants who failed inspection were listed on a pass/fail basis. The new web site allows users to dive into information and find out exactly what violations face the restaurant.

Source: http://www.nbcchicago.com/news/health/City-of-Chicago-Health-Departments-Online-List-Exposes-Alinea-135875908.html#ixzz1hBJvbBFy

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Filed under Food Illnesses, Guest Issues, Health, Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training

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by | December 19, 2011 · 6:14 am

Hospitality Industry Employee Risks: Tennessee Hotels Fined By Department Of Labor For "Fair Labor Standards Act" Minimum Wage Violations

“…Violations included charging excessive room and board to employees who also lived at a property or paying housekeepers by the room cleaned, resulting in a person’s pay falling below the $7.25 minimumwage; paying “straight time” for all hours worked, including overtime; and failing to pay for all hours worked by temporary employees…”

The U.S. Department of Labor said Wednesday that 35 franchised hotels and motels, including 11 in Middle Tennessee, violated minimum wage, overtime and other labor laws during the fiscal year ended Sept. 30. The agency said it fined those businesses a cumulative $14,552 and recovered more than $173,000 in wages owed to 283 employees.

Some hotel and motel operators also misclassified employees as independent contractors, denying them legal protections under federal labor laws, the agency said.

The citations and fines are part of a multiyear enforcement initiative focusing on Tennessee’s hotel and motel industry, in which regulators have “found widespread noncompliance with the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act,” the agency said in a news release.

For more:  http://www.tennessean.com/article/20111215/BUSINESS01/312150046/U-S-Labor-fines-11-Middle-TN-hotels-wage-violations?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

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by | December 16, 2011 · 7:03 am

Hospitality Industry Crime Prevention: Montana Police Task Force Trains Hotel Employees To Look For Evidence Of Drug And Prostitution Activity

Employees are taught to look for signs such as people who pay only in cash, give false vehicle information or don’t let housekeeping into their rooms for long periods of time.

The task force recently began implementing a program in which hotel and motel employees are trained to look for evidence of illegal drug activity coming from rooms, and to know who to call if they see something suspicious.

The recent arrests of three people suspected of running a prostitution operation in a room at the TownHouse Inn was a result of a tip made by an employee of the hotel to the Central Montana Drug Task Force.

The employee was trained by Sgt. Chris Hickman of the Great Falls Police Department, a member of the multi-agency task force, to recognize signs of suspicious behavior. While it was initially suspected that the three individuals were running a drug operation, Hickman said he was glad that officers were able to shut down the alleged prostitution as a result cooperation from hotel staff.

 According to Hickman, police are pursuing three active cases because of tips from cooperative lodging employees in Great Falls, but an unfortunate by-product of that cooperation can sometimes be a sullied reputation for the business if a tip leads to a publicized arrest.

For more:  http://www.greatfallstribune.com/article/20111214/NEWS01/112140311/Great-Falls-program-netted-prostitution-ring-relies-hotel-staff-tips

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by | December 14, 2011 · 6:21 am

Hospitality Industry Information Security Risks: Most Hotels And Restaurants Have Experienced A "Cyber Attack" In The Past Year; "Intellectual Property Protection" Is Too Often Ignored

“…Seventy-three percent of small-to-middle-sized companies experienced a cyber attack in 2010, and 30% of those attacks were extremely effective, according to Symantec, a software security developer based in Mountan View, Calif…”

“…estimates are that this year…the cost associated with each breach has gone up to $214 per record…Negligence is a big issue,” “

With the increase in worldwide cyber crimes, smaller private businesses may be more vulnerable than larger ones, said an executive of Chubb Group of Insurance Companies. “It’s the perfect cyber storm,” said Ken Goldstein, vice president of the Chubb Group of Insurance Companies. “We’re in a bad economy; we’ve got private companies, generally small to middle in market size, that are strapped in what they can spend on intellectual property protection,” he said.

At the same time, he said, new technology means “cyber thieves can essentially hack from anywhere around the globe.”

Cyber crimes can do serious harm to an organization’s bottom line. According to Ponemon’s, the median annualized cost of cyber crimes for the 50 organizations studied was $5.9 million, with a range of $1.5 million to $36.5 million. This represents a 56% increase since last year.

“Multiply that by the number of customers that you service; it could be a sizable amount of money that a company would have to pay out of pocket,” Goldstein said.

The most costly cyber crimes are those caused by malicious code, denial of service, stolen devices and Web-based attacks, Goldstein said. Besides deliberate cyber theft, Goldstein says company information loss sometimes is a byproduct of employee negligence. An employee losing their mobile device at a hotel or restaurant, for example, could lead to a breach, he said.

For more:  http://www.fa-mag.com/fa-news/9382-smaller-private-companies-at-greater-risk-of-cyber-attack-.html

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by | December 12, 2011 · 6:50 am

Hospitality Industry Security Risks: Hotels And Restaurants Must Have "Armed Robbery Prevention" Procedures; Available From Insurance Carriers

“…Because hospitality establishments have a certain amount of cash on hand, agents and cashiers may face the potential danger of robberies…”

  1. Is there a high degree of visibility?
  2. Are shop or outlet displays free from posters and signs?
  3. Are  counters and cases low enough for line of sight?
  4. Are all sections of business are visible from central cashier area?
  5. Do you call authorities if you suspect someone?
  6. Have you secured your desk or cashier operation if there is a reason for concern?
  7. Have you installed a holdup alarm system and instructed staff in its use?
  8. Do you keep minimal cash?
  9. Is your routine for bank deposits varied?
  10. Is your safe locked at all times?
  11. Have you taught robbery prevention to employees?
  12. Are references checked before hiring new employees?
  13. Do two or more people open and close your business?

For more:  http://www.hospitalitynet.org/news/154000320/4054068.html

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by | December 11, 2011 · 6:38 am

Hospitality Industry Food Safety: The "2009 FDA Food Code" Established New Federal Standards Limiting Handling Of Foods With "Bare Hands", Lowered Refrigeration Temperatures

“…The United States Food and Drug Administration (FDA) Food Code (established) a new set of federal standards in 2009…multiple federal agencies, with input from business interests…(made) several changes in how health inspections are conducted…”

CLICK ON "FDA" TO VIEW FDA FOOD CODE

  • Restaurants will have to put date markers on all food containers in their refrigerators and freezers
  • Prepared food may be kept for no more than four or seven days, depending on the temperature to which it’s chilled
  • Cooks and kitchen help will no longer be allowed to touch ready-to-eat foods with their bare hands
  • Gloves must be used
  • The standard is minimal bare-hand contact
  • Refrigeration standards are being tightened
  • Potentially hazardous foods – those that can make you sick if you’re not careful – must be chilled to 41 degrees

For more:  http://www.starnewsonline.com/article/20111210/articles/111219993?p=1&tc=pg

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by | December 7, 2011 · 7:58 am

Hospitality Industry Employment Risks: "Americans With Disabilities Act" Amendment Has Broadened Definition Of "Disability"; "Employment-Practices Liability" Claims Expected To Rise Dramatically

“…As a result of the EEOC rulings, which broaden the definition of disability to include protections for employees with, for example, cancer, diabetes or epilepsy… the definition of disability under the law was “significantly expanded” by the ADAAA, and she also expects claims numbers to grow as a result.”

“…A person with diabetes…you must provide reasonable accommodations—a place to test blood sugar, a break to take medications and time to rest…”

“…It’s cheaper to purchase (the proper Employment-Practices Liability coverage] than to defend yourself against one of these claims…”

Steps taken by federal officials to broaden the definition of “disability” is putting pressure on employers—and insurers are forecasting an increase in employment-practices liability (EPLI) claims.

The Americans with Disabilities Act Amendments Act (ADAAA), which went into effect on Jan. 1, 2009, directed the U.S. Equal Employment Opportunity Commission (EEOC) to revise its regulations “to restore the intent and protections” of the original act, and to address what lawmakers felt was a too-narrow view taken by courts of the original ADA provisions.

For more:  http://www.propertycasualty360.com/2011/12/01/ada-amendments-broader-definition-likely-to-cause

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by | December 6, 2011 · 6:53 am

Hospitality Industry Guest Privacy Risks: New "Invasion Of Privacy" Lawsuit Filed Against Tennessee Hotel By ESPN Reporter Who Seeks $6 Million For "Negligence And Infliction Of Emotional Distress"

“…The lawsuit charges that Barrett called the Marriott and was told which room Andrews would be staying in and then rented the room next to her…”

The lawsuit accuses Marriott of negligence, infliction of emotional distress and invasion of privacy and seeks at least $2 million in damages for each of the claims. Barrett was accused of the same claims in addition to disclosure of private facts, and the lawsuit seeks $1 million for each claim against him.

ESPN reporter Erin Andrews filed a new lawsuit in Davidson County Circuit Court last week accusing the Nashville hotel where she was unknowingly videotaped in the nude in 2008 of invasion of privacy, negligence and infliction of emotional stress.

In addition to the West End Marriott Hotel, Andrews also named convicted perpetrator Michael Barrett in the lawsuit. Barrett, an Illinois resident, was sentenced to two and a half years in federal prison in 2010 for stalking Andrews as she traveled around the country to cover sporting events for ESPN and filming her in her hotel rooms.

For more:  http://www.tennessean.com/article/20111206/NEWS03/312060024/ESPN-s-Erin-Andrews-files-new-invasion-of-privacy-suit

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