Category Archives: Labor Issues

by | November 20, 2013 · 7:12 am

Hospitality Industry Legal Risks: California Hotels Settle Federal “Wage Violation” Investigation For $60,000; Management Used Separate Payrolls For 53 Workers To Avoid Overtime Pay

Investigators determined that Miracle Springs Resort and Spa, and the nearby Desert Hot Springs Spa and Hotel, were under the same Hospitality Industry Wage Violation Lawsuitsmanagement, but they recorded employee hours on separate payrolls. When the affected employees’ hours were combined, the hours often totaled more than 40 per week, entitling the employees to overtime compensation for hours worked beyond 40 per week. Additionally, the employer would automatically deduct a 30-minute lunch break from some employees’ work hours, even when employees did not take the break.

The hotel Miracle Springs Resort and Spa of Desert Hot Springs has agreed to pay $59,790 in back wages to 53 employees, including maintenance and housekeeping employees, following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the overtime provision of the Fair Labor Standards Act.

“Hotel owners and operators must ensure that their employees are properly compensated for all work hours,” said Kenneth Morrison, director of the Wage and Hour Division’s San Diego District Office. “We are pleased that these workers will be paid their rightful overtime wages and that the employer has agreed to make the appropriate changes to prevent future FLSA violations.”

The employer, along with paying the full back wages to the affected employees, will maintain future FLSA compliance by agreeing to combine the hours for employees who work at both hotel locations. The employer will deduct lunch breaks only when employees take the 30-minute break.

The hotel and motel industry employs many low-wage workers who, due to a lack of knowledge of the law or an unwillingness to exercise their rights, are vulnerable to disparate treatment and labor violations. The Wage and Hour Division is concerned about the noncompliance in this industry and is concentrating its resources on identifying and remedying violations, informing workers of their rights and providing compliance assistance to employers.

For more: http://www.dol.gov/whd/media/press/whdpressVB3.asp?pressdoc=Western/20131118.xml

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by | November 18, 2013 · 10:24 am

Hospitality Industry Employment Risks: New Mexico Hotel Settles EEOC “Religious Discrimination” Lawsuit For $100,000; Housekeeper Fired After Refusing To Remove Head Covering

 “…The EEOC lawsuit charged the employer with failing to allow Abdullah to work unless she removed her religious head covering, and fired her Equal Employment Opportunity Commissionwhen she declined to do so…the consent decree includes: an injunction prohibiting future discriminatory practices; institution of policies and procedures to address religious discrimination and retaliation; training for employees of MCM, and managers and human resource officials of both defendants on religious discrimination; and posting a notice advising employees of their rights under Title VII…”

704 HTL Operating LLC and Investment Corporation of America, doing business as MCM Elegante Hotel in Albuquerque, has agreed to settle a religious discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission for $100,000 and other relief.

The EEOC, in a news release, said the settlement resolves an EEOC lawsuit filed in September for alleged religious discrimination against Safia Abdullah, who was hired for a housekeeping position at the hotel. The hotel owners denied the allegations in the EEOC’s lawsuit and said in court papers they settled the case to avoid the risks and expenses of continued litigation.

For more: http://www.eeoc.gov/eeoc/newsroom/release/11-18-13.cfm

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by | November 17, 2013 · 10:21 am

Hospitality Industry Legal Risks: Florida Restaurant Faces Federal “Sexual Harassment Lawsuit”; Manager Created “Hostile Work Environment”, Retaliated Against Two Female Workers

“…(one plaintiff) worked at the restaurant from 1999 to February of 2012 and she complained to the restaurant’s owner about the manager’s Hospitality Industry Sexual Harassment Lawsuitsuse of “racial slurs in the workplace”…The manager also directed racist “pet names” of his own creation toward her…The lawsuit charges the manager used derogatory terms and slurs as part of a “vicious regime of racial and sexual harassment” at the restaurant on Canal Street, and it says “no effective action was taken to stop it.”

Two former employees of a McDonald’s restaurant in Mulberry have filed a federal lawsuit, accusing a manager of creating a hostile work environment. The women allege they were retaliated against after making complaints known to the restaurant’s owner. Cowles’ hours were drastically reduced, and she was left with “no choice” but to quit her job when the manager’s behavior continued, the lawsuit states.

Potts went on maternity leave, and when she attempted to return to work, she was informed “there was no job for her, despite the nearly perpetual turnover of employees at the restaurant,” according to the lawsuit.

For more: http://www.theledger.com/article/20131116/NEWS/131119396/1374?Title=Ex-McDonald-s-Employees-File-Lawsuit

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Hospitality Industry Insurance Risks: Workers’ Compensation Fraud Accounts For 25% Of All Insurance Fraud, Costing $5 Billion Annually

Workers' Compensation Fraud

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by | November 14, 2013 · 9:05 am
by | November 12, 2013 · 9:35 am

Hospitality Industry Safety Solutions: Hotel And Restaurant Kitchen “Safe Work Practices” To Prevent “Slips, Trips And Falls” Of Young Employees

OSHA SafetyOSHA Restaurant Safety

https://www.osha.gov/SLTC/youth/restaurant/hazards_slips.html

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by | November 10, 2013 · 9:17 am

Hospitality Industry Employee Risks: Michigan Restaurant Waitress Convicted Of “Credit Card Forgery” After Padding Tips On Transactions; Prior Record For Theft And Larceny

“…(the defendant) was hired as a waitress at Buffalo Wild Wings…on June 19, 2013, she stole from customers by padding the tip amount on Restaurant Employee Theftelectronic receipts…For example, when someone used a credit card to pay for their bill, (she) would change the tip amount when she entered the transaction into the computer…The restaurant received a complaint from a customer, which led to an internal investigation by the business. That initial complaint led to others…”

Kortney Donesia Lewis, a 25-year-old Fruitport Township woman, garnered three prison terms this week for padding her waitress tips at a Buffalo Wild Wings restaurant — crimes committed while she was a fugitive from sentencing for a theft at a Red Roof Inn job.

Lewis also has a previous conviction record of stealing credit cards and larceny in a building in 2009.

Muskegon County 14th Circuit Judge Timothy G. Hicks on Monday, Nov. 4, sentenced Lewis to prison for three terms of between 15 months and 15 years for credit-card forgery as a fourth-time habitual offender. She pleaded guilty as charged Sept. 24.

For more: http://www.mlive.com/news/muskegon/index.ssf/2013/11/ex-waitress_gets_prison_for_st.html

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by | November 7, 2013 · 7:23 am

Hospitality Industry Employment Risks: Georgia Restaurant Sued By EEOC For “Sexual Harassment”; Female Workers Forced To Resign After Not Tolerating The Abuse By Manager

“…According to the EEOC’s suit, the employer allowed six women to be subjected to repeated acts of sexual harassment by a manager.  The Equal Employment Opportunity Commissionsexual harassment occurred throughout the servers’ employment, occurring daily for some…When some of the servers rejected the sexual advances, they were assigned to less profitable sections of the restaurant or had their work schedules negatively changed, which resulted in lower earning opportunities. Although the employees complained to other management officials about the harassment, nothing was done to stop it from recurring…” 

A popular Atlanta-area restaurant/nightclub violated federal law by subjecting female servers to a pattern of sexual harassment by a manager, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed recently against Sirdah Enterprises, Inc., which owns and operates Taboo 2 Bar and Bistro in Roswell, Ga. The agency also alleged that the working conditions were so intolerable that five of the women were forced to resign when they could no longer tolerate the abuse.

It included groping their breasts and buttocks, indecent exposures, explicit sex related comments, requests for sexual favors, and promises of better working assignments and other benefits if they engaged in sexual acts.

Sexual harassment violates Title VII of the Civil Rights Act of 1964.  The EEOC filed the suit in U.S. District Court for the Northern District of Georgia (EEOC v. Sirdah Enterprises, Inc. d/b/a Taboo 2 Bar & Bistro, No. 1:13-cv-03657) after first attempting to reach a voluntary settlement.  The federal agency seeks back pay, compensatory and punitive damages for the servers, as well as injunctive relief designed to prevent such misconduct in the future.

“This case involves charges of gross sexual harassment where a manager, an individual normally entrusted with ensuring that the rights of employees are protected, took advantage of these women by abusing his position of power,” said Bernice Kimbrough, district director for the EEOC’s Atlanta District Office.

Robert Dawkins, regional attorney for the Atlanta District Office, said, “Taboo 2 was aware of the sexually hostile work environment to which these young women were being subjected, but failed to take remedial measures as required under the law.  In addition to vindicating the rights of these seven women, this lawsuit is for the purpose of protecting the rights of current and future female employees.”

The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the EEOC is available on the agency’s web site at www.eeoc.gov.

For more: http://www.eeoc.gov/eeoc/newsroom/release/11-6-13a.cfm

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by | November 6, 2013 · 11:44 am

Hospitality Industry Safety Risks: Florida Hotel Faces Serious “OSHA Safety Violations” After Death Of Worker Crushed By Elevator; Lacked “Written Lockout/Tagout Procedures”

“…(the Hotel management company) had faced $23,000 in proposed fines for three serious and two other-than-serious alleged violations, Hospitality Industry OSHA Violationsaccording to the citations…RIA-Tradewinds allegedly lacked a written lockout/tagout procedure for the hotel’s elevators, the employee authorized to lockout/tagout the elevator involved in the death didn’t do so, and there was no coordination of lockout/tagout procedures with Progressive Environmental. The two other-than-serious violations involved the lack of documentation for lockout/tagout procedures and training…”

Two companies face $84,000 in proposed fines over the death of a worker in Florida who was crushed by an elevator car while cleaning the bottom of an elevator shaft, according to citations released Nov. 4 by the Labor Department’s Occupational Safety and Health Administration.

The citations, dated Oct. 15, allege the two companies failed to coordinate their lockout/tagout procedures and that employees lacked required lockout/tagout training.

The worker, Mark Allen Johnson, 45, of Tampa, was employed by Progressive Environmental Services, doing business as SWS Environmental Services of Panama City Beach, according to OSHA and police reports. He died April 24 while cleaning oily water from the bottom an elevator shaft at a St. Petersburg Beach hotel. The hotel, Tradewinds Island Grand Beach Resort, is managed by RIA-Tradewinds Inc., according to the citations.

OSHA cited Progressive Environmental for one repeat and four serious alleged violations carrying proposed fines of $61,000.

For more:  http://about.bloomberglaw.com/law-reports/death-of-florida-worker-in-elevator-shaft-results-in-84000-in-fines-10-violations/

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by | November 5, 2013 · 6:53 am

Hospitality Industry Insurance Solutions: “Hospitality Workers’ Compensation Fundamentals” By Brad Durbin Of Petra Risk Solutions

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Petra Risk Solutions Education Partners

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by | November 4, 2013 · 6:53 am

Hospitality Industry Legal Risks: Texas And New Mexico Hotels Pay $78,000 To Settle Department Of Labor “Wage Violation Lawsuit”; Staff Paid Flat Rate Without Regard To Hours Worked

Investigators found that the MCM Elegante and MCM Grande Hotels paid housekeeping staff a flat rate per room cleaned, without regard to the Hospitality Industry Wage Violation Lawsuitsnumber of hours worked. When these employees worked more than 40 hours in a week, the employers continued to pay only this flat rate, failing to pay overtime at one and one-half times the employees’ regular rates of pay, as required by the FLSA. A housekeeper paid $3 per room, cleaning three rooms per hour, would earn $450 for a 50-hour week at the piece rate, without overtime. The employee would legally be due $495, a shortage of $45.

MCM Elegante and MCM Grande Hotels in New Mexico and Texas have paid $78,876 in overtime back wages to 200 dishwashers, bartenders, wait staff, bellmen, housekeeping, and maintenance workers following an investigation by the U.S. Department of Labor’s Wage and Hour Division (WHD).

The investigation allegedly found overtime, minimum wage, and recordkeeping violations of the Fair Labor Standards Act (FLSA). Employees in Albuquerque, New Mexico and several cities in Texas, were not properly paid wages they were due. The hotels are owned by HTL Operating LLC, based in Odessa, Texas.

As a result of the investigation, the employer has agreed to comply with the FLSA at all of its locations. It will pay the back wages found due in full.

For more:  http://compensation.blr.com/Compensation-news/Compensation/FLSA-Fair-Labor-Standards-Act/Hotel-employees-owed-79000-in-back-wages/#

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