Category Archives: Labor Issues

by | August 1, 2011 · 6:08 am

Hospitality Industry Crime Risks: Major Hotel Operator Improves Staff Training And Procedures After "Gang-Led Child Prostitution Ring" Investigation Results In Indictment Of California Hotel Owner

“…The investigation resulted in an April federal indictment of 38 people, including suspected gang members and the owners of a Wyndham-franchised Travelodge in Oceanside, authorities said…”

Hotel operator Wyndham Worldwide will improve its staff training and procedures after authorities cracked down on gang-led child prostitution rings in California hotels, a probe that drew media and activist attention to the chain, a hotel spokesman said Friday.

Wyndham is expanding its years-long efforts to fight child sex trafficking by reviewing its operating practices in partnership with the nonprofit ECPAT-USA (Ending Child Prostitution and Trafficking), said Michael Valentino, director of communications for Wyndham Worldwide.

Southern California authorities recently completed an 18-month investigation into allegations that three rival Crips gangs collaborated to prostitute girls and women out of California hotels through Internet-arranged meetings.

 A CNN story in June prompted one activist to lead a 14,000-signature online petition drive on Change.org, an activist platform, demanding that Wyndham reform its business policies.

“As long as human trafficking and exploitation continue to be supported by those profiting from this tragic practice, we believe no member of the travel and tourism industry can ever guarantee these events will not occur in the future,” Valentino told CNN in an e-mail Friday.

For more:  http://thecnnfreedomproject.blogs.cnn.com/2011/08/01/hotel-chain-boosts-staff-training-to-fight-child-prostitution/

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by | July 5, 2011 · 8:22 am

Hospitality Industry Information Security Risks: Hotel Computer Systems Are Increasingly "Breached" Through "Privileged Users" Who Have Total Access To Sensitive Data

“..security breaches are still happening at an even more significant pace with more damaging results.  In the end, many of these advanced intrusions and data security breaches are focused on taking over access to the accounts and permissions of specific “privileged” users in an organization who have access to sensitive data…”

“…These privileged users are specifically targeted by outside hackers because they have proverbial keys to the kingdom, but in some cases the inside user themselves is intent on stealing or doing damage…” 

One solution that is emerging to this problem is to carefully monitor everything (e.g. every key stroke and every mouse click) that a privileged user does on the network, while also putting more granular limits on what they can do.  Basically “trust but verify,” with the goal being detecting any anomalies in a privileged user’s computing usage (e.g. why is this person downloading the source code at 3 a.m.?).  This is not uncommon as it relates to other privileged users in other jobs — the “Eye in the Sky” in the casinos in Las Vegas is equally monitoring the gamblers for cheating but is also monitoring the dealers, and at a bank the CCTV is not only looking for robbers but the teller slipping some money in their pocket.

Instructive of the value of this new approach is that immediately after its breach, the RSA division of EMC acquired private company Netwitness for a reported large premium.  Netwitness is known for analyzing user activity monitoring at the network layer.  In addition, the latest security vendor to file for an IPO, Imperva, has as its core solution the ability to monitor database access and usage by Database Administrators, another type of privileged user.

For more:  http://blogs.forbes.com/tomkemp/2011/07/05/as-hacks-proliferate-new-security-technology-emerges-to-monitor-privileged-it-users/

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

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by | June 28, 2011 · 1:15 pm

Hospitality Industry Insurance Risks: "Employment Practices Liability Insurance" May Contain "Exclusions For Intentional Acts" That May Deny Coverage To Hotel Executives In "Disparated Treatment And Sexual Harassment" Cases

“…a panel of arbitrators found that (the executive)  “was well acquainted with the company’s policy on sexual harassment and other acts of inappropriate conduct.”  They further found that (the executive)  “did not comply with the policy on sexual harassment and that his refusal was willful.” 

“…attorneys should remind their clients to carefully review their existing EPLI policies and to understand all exclusions that may apply, as well as to be mindful of such exclusions when negotiating the purchase of a new EPLI policy…”

Exclusions typically found in EPLI policies include exclusions for Fair Labor Standards Act claims, National Labor Relations Board decisions, ERISA matters, costs of complying with accommodations mandated by the Americans with Disabilities Act, and claims arising out of facts or circumstances known to the employer before the effective date of the policy.  Another possible exclusion is for intentional acts.  This exclusion generally is intended to eliminate coverage if an employer acts with “wonton, willful, reckless, or intentional disregard for any laws.” This exclusion is a carryover from other policies traditionally offered, including commercial general liability policies and workers compensation policies.

The question that arises is whether an intentional acts exclusion precludes coverage for disparate treatment or sexual harassment claims.  By their very nature, disparate treatment and sexual harassment require some type of intentional conduct.  If the intentional acts exclusion is interpreted broadly enough, an allegation of disparate treatment or sexual harassment may provide the insurer grounds for denying coverage under the policy.

For more:  http://www.lexology.com/library/detail.aspx?g=54d3b2ac-48f1-497b-ac65-ee0e32826815

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Filed under Claims, Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

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by | June 26, 2011 · 5:59 pm

Hospitality Industry Employee Risks: Hotel Management Should Use Employment Contracts Which Are "At Will", Do Not Discriminate And Define Scope Of Employment; Comprehensive Insurance Should Be In Place At All Times

Hotel Management and owners should set up uniform employment contracts, which:

  • Do not discriminate against people based on any of the protected classes as defined by federal or state law;
  • Define the scope of the employment;
  • Say if the employment is for a term or “at will”;
  • Assign the pre-corporate formation intellectual property to the company;
  • Assign all subsequently created intellectual property to the company; and
  • Protect the corporate intellectual property from disclosure.

The last two categories of protecting intellectual property of the company can be accomplished by drafting non-disclosure agreements, and Proprietary Invention Assignment Agreements.

Insurance – Getting insurance for your company is a bet worth taking, given the potential unpleasant surprises of not being prepared. Again, your needs will vary depending on your company, but among the standard offerings are:

  • Comprehensive General Liability Policies (“CGL”) – A CGL policy is usually geared towards protecting a company from personal injury;
  • Directors and Officers (“D&O”) Insurance – D&O insurance may cover the wrongful acts of the officers and directors of a company;
  • Advertising Injury Insurance – Insurance that covers defamation, invasion of privacy, copyright infringement and other intellectual property injuries. (The advertising injury is usually a part of a larger policy, like a CGL, and not a policy onto itself.); and
  • Employment Practices Liability Insurance (“EPLI”) – The EPLI is a specialized insurance policy protecting companies against employment lawsuits.

For more:  http://venturebeat.com/2011/06/27/4-legal-pitfalls-startup-owners-must-face/

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Training

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by | June 23, 2011 · 6:54 am

Hospitality Industry Employee Risks: Hotel Management Must Maintain "Employment Practices Liability Insurance" To Protect Against Expensive Litigation Defending "Frivolous" Employee Lawsuits; "Arbitration Agreements As Conditions Of Hiring" Also Helpful

“…based on the new case law, an employer that wins in court can’t even recover attorney fees for frivolous claims, if they overlap with other claims that are viewed as “non-frivolous.”

“…Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying…”

“…Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired..”

That was the ruling last January in a federal court in California. The employer spent $315,000 in attorney fees, and prevailed on each of the ten claims in the lawsuit. The judge found that some of the claims were frivolous, and allocated $85,000 to the employer as reimbursement for the frivolous claims. The 9th Circuit (which also governs federal cases in Oregon) reversed on appeal because the employer didn’t prove that those fees were incurred solely in defense of the frivolous claims. This month, the U.S. Supreme Court made the same ruling in another civil rights case.

So what can employers do to minimize the risk of a devastating loss? Many employers are surprised to learn, after it’s too late to do anything about it, that general liability insurance does not cover discrimination claims. Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying.

Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired. Under these agreements, both sides agree in advance that any employment-related claims will be resolved in arbitration rather than in court. Litigating before an arbitrator tends to be faster and less expensive than court trials. Currently, an Oregon statute requires an employer to tell an applicant about the arbitration agreement 14 days before hiring. A bill is making its way through the Oregon Legislature that would reduce this time period to 72 hours. These agreements need to be carefully drafted to be enforceable.

Read more: Protect against discrimination lawsuits – Oregon Business http://www.oregonbusiness.com/contributed-blogs/5451-changing-rules-for-discrimination-lawsuits#ixzz1Q6ve56Ao

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by | June 15, 2011 · 7:35 am

Hospitality Industry Employee Theft Risks: Delaware Hotel Sales Manager Arrested For "Creating Fictitious Hotel Rewards Program Accounts" And Purchasing Goods Later Resold For Cash

“…McNeill worked at the Renaissance Hotel, part of the Marriott chain, in Tinicum Township as a sales manager until Nov. 24, according to court papers. According to court documents, McNeill allegedly created six fictitious accounts in Marriott’s rewards program and logged points into the system. Purchases using those accounts were made between October and December of last year…”

A former Delaware County hotel employee has been arrested after she allegedly used more than $103,000 worth of fraudulent “hotel points” to buy items on Skymall, the online shopping catalog.

Tia L. McNeill, 34, formerly of King of Prussia, was taken into custody on Tuesday at a Sheraton Hotel in Towson, Md., where she now works. She has been charged with theft, criminal conspiracy, receiving stolen property, and related offenses, according to the District Attorney’s Office.

Also arrested was Christopher Jordan Jr., assistant director of basketball operations at Georgia State University in Atlanta. Jordan told police he would use accounts created by McNeill to order merchandise and then resell the items for cash. He would then send half the proceeds to McNeill.

In addition, McNeill allegedly illegally obtained $26,775 worth of Marriott Visa cards, which can be used only at the hotels

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by | June 9, 2011 · 6:13 am

Hospitality Industry Risk: "Petra Risk Solutions" Releases "P3 Hospitality Risk Report" Video On "Innkeeper's Limit Of Liability"

[vimeo http://www.vimeo.com/52513786 w=630&h=354]

Petra Risk Solutions’ Director of Risk Management, Todd Seiders, offers a P3 Hospitality Risk Report – ‘Innkeeper’s Limit of Liability’. 

  P3 ( Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

 For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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by | June 7, 2011 · 7:56 am

Hospitality Industry Computer Risks: Cybercrime Risks Remain Perilous As "Malicious Software Or Malware" Increases To 6 Million Programs In First Three Months Of 2011

The amount of new malicious software, or “malware,” unleashed on the internet during the first three months of this year hit six million programs, according to a report last week by McAfee, the computer antivirus maker. “It’s been a busy start to 2011 for cybercriminals,” Vincent Weafer, senior vice president of McAfee Labs, said in a statement.

A 2009 study by computer antivirus maker McAfee and SAIC, a technology security firm, estimated that computer crime cost companies $1 trillion across the globe, but analysts say the actual total is sure to be higher as computer security breaches are underreported.

“I think all the service providers are victims of this type of issue, it’s just whether the company has a public interface to warn users of this type of problem is the big question,” Andrew Lih, author and professor at the University of Southern California, told CNN.

“Google has been pretty good at being forthcoming in having this kind of dialogue with its users,” Lih said. “It’s very possible to probable that these other service providers, from Yahoo to Microsoft to any of these other ones, have had these types of attacks, it’s just that Google has been very public in trying to combat this.”

For more:  http://business.blogs.cnn.com/2011/06/07/the-hidden-cost-of-cybercrime/

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by | June 5, 2011 · 9:50 am

Hospitality Industry Legal Risks: Amended "Americans With Disabilities Act" (ADA) Became Law On May 24 With Potential For "Increased Frequency Of Litigation Losses"; Management Must Improve Accomodation Efforts

“…under the amended act, an employee who suffers from depression may be able to function quite normally with the aid of medication but will still be considered to be disabled and will need to receive accommodation….”

“…the frequency of discrimination claims will likely increase — as will the frequency of litigation losses — but she says the severity of individual claims will likely not change all that much, with class actions in this field being a rarity…”

Existing employment-practices liability insurance policies shouldn’t have to be rewritten or modified, she says. “We would push back on any attempt to limit coverage just because the act has been expanded.”

Employers, however, should be integrating their disability-management programs to include non-occupationally injured and ill employees, and not just workers’ compensation cases, according to Pimentel.

“That is the big trend, and by the way, from an ADA-compliance standpoint, I recommend employers take a close look at doing that,” Pimentel says.

Employers should also be revisiting how much training they are doing among their supervisors on employee etiquette, language and comfort levels in communicating with disabled employees, he advises.

“Talking to them about their needs for accommodation is … an enforced requirement under the law,” Pimentel says.

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=533338925

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Filed under Claims, Employment Practices Liability, Insurance, Labor Issues, Legislation, Liability, Management And Ownership, Risk Management, Training

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by | June 2, 2011 · 7:55 am

Hospitality Industry Employee Security: New York Hotel Suspends Supervisor For Failing To Report "Sexual Assault" On Housekeeper In Timely Manner

“…Authorities say the businessman, who is in his 70s, attacked a maid at The Pierre hotel…The hotel… suspended the supervisor of housekeeping for not reporting the alleged assault…”

The maid told her superiors that she was assaulted that night, but they said it was best to wait until the following morning to report it to the security director, a law enforcement official told The Associated Press on Tuesday. The director called police Monday morning.

A businessman and former chairman of a major Egyptian bank charged with sexually abusing a housekeeper at a luxury Manhattan hotel is being held on $25,000 bail and has been ordered to hand over his passport because he is considered a flight risk. Omar was arraigned on two counts of sexual abuse and forcible touching.

Authorities say the maid was called to Omar’s room Sunday evening to drop off tissues. District Attorney Nicole Blumberg said that when the victim entered the room, the defendant grabbed her in a bear hug and her kissed her on the lips and neck and told her repeatedly that he liked her, before grabbing her breasts.

The prosecutor said that as the maid tried to get away, he grabbed her in a second bear hug, grinding his groin against her leg. She broke away again, and the prosecutor said the defendant then squeezed her buttocks.

Pierre spokeswoman Nora Walsh said in an email to The Associated Press on Wednesday that the supervisor of housekeeping was suspended pending an investigation.

For more:  http://www.taiwannews.com.tw/etn/news_content.php?id=1615690

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