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Category Archives: Liability
Hospitality Industry Insurance Solutions: “Hospitality Workers’ Compensation Fundamentals” By Brad Durbin Of Petra Risk Solutions
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Filed under Injuries, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Training
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 
number 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.
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management
Hospitality Industry Safety Solutions: “Hotel Power Outage Risks” Discussed By Todd Seiders, Director Of Risk Management At Petra Risk Solutions
October 21, 2013 Issue
“Getting Through A Power Outage Is All In The Planning And Prep”
By Nicole Carlino, Associate Editor
For the average household, a prolonged power outage can be a nuisance, but for a hotel, it’s logistically difficult and a potential insurance nightmare.
Todd Seiders, director of risk management, Petra Risk Solutions, a hotel-specific insurance broker, noted that there are three main pitfalls for hotels when it comes to a loss of power: loss of business; guest and employee safety; and food spoilage.
“Policies are cleverly written, and they often don’t cover the first 48 hours of a power outage,†Seiders said, noting that many outages last less than that, which is still long enough for guests to decide to cancel reservations. And, should a guest be hurt, the hotel is the entity they’re going to sue regardless of who is at fault for the outage. As for food spoilage, Seiders said a hotel could lose thousands of dollars if it isn’t properly prepared for power loss.
Preparedness, he said, is the key. Seiders noted that one of the best things a hotel can do is to make sure it has plenty of flashlights on hand for guests and employees.
“If you don’t have some of these basics ready to go, you may never have them during the entire outage,†Seiders said, noting that others often run out to buy the items during the loss.
In addition to making sure necessary items are in-house, hotels need to review their emergency response plan; know what areas of the hotel an emergency generator will power; know the procedure for rescuing guests trapped in elevators; understand how the fire alarm system works in an emergency situation; have a plan for perishable food; and maintain an employee cell phone list. Also, a hotel should know how the key card machine works in an outage.
“You want to be able to get new guests into the rooms,†he said, noting that in many cases, emergency keys have to be prepared prior to a power outage.
“It’s training,†Seiders continued. “Employees have to be trained in things they’re not accustomed to.†He noted this is down to even simple measures, like knowing where the flash- lights are stored. One of the most important things to do, Seiders concluded, is to make sure to power down the building.
“When power comes back on, it surges,†he said. “That can cause all kinds of damage.â€
To view this article online: http://www.nxtbook.com/nxtbooks/icd/hotelbusiness_20131021/#/14
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Filed under Guest Issues, Liability, Management And Ownership, Risk Management, Training
Hospitality Industry Legal Risks: New Jersey Hotel Settles “Price Gouging” Lawsuit For $75,000; Raised Prices 70 Percent During Hurricane Sandy
New Jersey’s price gouging law prohibits excessive price increases during a declared state of emergency or for 30 days after the termination of 
the state of emergency. Excessive price increases are defined as more than 10 percent higher than the price at which merchandise was sold during the normal course of business prior to the state of emergency. If a merchant incurs additional costs during the state of emergency, prices may not exceed 10 percent above the normal markup from cost.
A Hazlet Hotel has agreed to pay penalties for allegedly price gouging in the aftermath of Hurricane Sandy, Acting Attorney General John Hoffman said Wednesday in a press release. The Riya Hazlet Hotel, a Holiday Inn at 2870 Rt. 35, Hazlet, will pay $75,000 to settle the suit, which includes $2,951 in consumer restitution. The state will receive $52,121 in civil penalties and $19,926 in attorneys’ fees and investigative costs, Hoffman said.
In December 2012, a N.J. state lawsuit alleged that the Hazlet Holiday Inn raised its prices more than 70 percent, from under $135 to almost $230 a night, between Oct. 27 and Nov. 5 during a declared state of emergency.
The Office of the Attorney General and its Divisions of Consumer Affairs and Law have reached settlements with another eight companies alleged to have price gouged customers following Superstorm Sandy, Hoffman said. Under terms of these settlements, the State will obtain more than $437,000 in penalties, fees and consumer restitution.
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Filed under Guest Issues, Liability, Management And Ownership, Risk Management
Hospitality Industry Legal Risks: New York Restaurant Found Guilty Of “Anti-Semitic Harassment”; Ordered To Pay $900,000 To Former Deliveryman
A New York restaurant deliveryman was awarded a $900,000 jury verdict for enduring 16 years of anti-Semitic harassment by three 
supervisors…(who) called him a “dirty Jew†and threw pennies at him while making anti-Semitic comments; they also docked his tips.
A deliveryman for New York’s Manhattan restaurant Mangia 57 has won a $900,000 jury verdict for the anti-Semitic harassment he endured while working at the establishment. According to the lawsuit, night shift manager Artur Zbozien often “passed gas†in front of Adam Wiercinski and said it was Zyklon B, the poison German Nazis used to exterminate Jews during the Holocaust, the New York Post reported.
Mr. Wiercinski endured the abuse for 16 years because “he was 50 years old,†his lawyer said. “He said, ‘Who else is going to hire a 50-year-old delivery man?’ He was afraid.â€
The jury reached a verdict in just four hours after hearing much of the testimony in Polish — used by many of the restaurant’s employees, the Post reported.
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership
Hospitality Industry Insurance Issues: Employer Timeline For “Implementing The Affordable Care Act (ACA)”
For more:Â http://www.hotelnewsnow.com/media/Images2013/SpecialReports/20131028_Obamacare_timeline.jpg
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Filed under Insurance, Liability, Management And Ownership, Risk Management
Hospitality Industry Risk Solutions: “Liability Insurance: An Essential Precaution” For Hotel And Restaurant Owners By HospitalityLawyer.com
Once you have the proper coverage through a financially solvent company, ascertain that the amount of the coverage meets your needs. To ensure that you fully understand how much you actually have for the entire period, it is critical that you become familiar with the following concepts and terms: per occurrence, aggregate and umbrella or excess insurance.
You must also be aware of “claims made†policies. The term “claims made†means that the coverage is only available if an actual claim is brought to the attention of the insurance company during the policy period. Usual insurance policies cover claims that occur during the policy period, although they are not brought to the attention of the insurance company until after the coverage period has elapsed.
http://www.hlconverge.com/
When you buy liability coverage for your hotel or restaurant operation, you should receive a measure of protection and peace of mind, but for some reason you remain with that gnawing feeling that all may not be well with your insurance portfolio. You think you did what you were supposed to do. But did you? Do you have enough insurance? Do you have the right kind of coverage to cover possible accidents, incidents and catastrophes? Employer’s liability? Liquor liability? Auto insurance for employees who drive a car on behalf of the business? Do you know where your liability insurance policy is? When was the last time you read it? Do you understand the fine print? Do you know who the underwriter is – not the agent, but the company that is supposed to pay in the event of a claim? Do you know whether the insurance company is financially solvent?
Insurance Policy Coverage Checklist
1. General Liability (fire and casualty for the premises and hotel operations)
2. Employers Liability (discrimination claims)
3.  Workers’ Compensation (injury on the job)
4.  Liquor Liability (dram shop liability)
5. Â Swimming Pool/Spa/Workout Area Addendums
6. Â Golf Course Operators Liability
7.  Employee Security Bonds
8. Automobile Liability (autos, motorized carts, shuttle service, etc.)
9.  Outdoor/Water Activity Coverage Addendum
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Filed under Insurance, Liability, Management And Ownership, Risk Management
P3 Hospitality Industry Risk Report: “Food Poisoning Claims” By Todd Seiders, Director Of Risk Management For Petra Risk Solutions (Video)
[vimeo http://www.vimeo.com/52038337 w=500&h=281]
http://www.petrarisksolutions.com/
Petra Risk Solutions’ Director of Risk Management, Todd Seiders, offers a P3 Hospitality Risk Report – ‘Food Poisoning Claims’.
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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Filed under Food Illnesses, Guest Issues, Health, Insurance, Liability, Management And Ownership, Risk Management, Training
Hospitality Industry Employment Issues: Management Must Have An “Interactive ADA Compliance Process” To Insure “Reasonable Accomodation” Of Employee Disabilities; Conduct “Brainstorming Meetings” To Enable Continued Performance Of Job Duties
“…the interactive process is the name given to the process that an employer utilizes in order to determine the appropriate reasonable accommodation that 
will enable an employee with a disability to perform the essential functions of the position…”
“A primary goal (is a) meeting to determine what problems the employee is having in performing their job tasks because of a disability. This entails soliciting ideas from the employee about what you could provide that would enable the employee to perform his or her job duties…”
If the supervisor who is asked for an accommodation can easily provide one, then he or she should do so as soon as possible. However, to establish that you have engaged in good faith in the interactive process, best practice is to schedule a meeting with the employee, the employee’s supervisor and someone from HR. In addition to soliciting ideas, you may also suggest solutions. The purpose of this brainstorming meeting is to come away with suggestions to enable the employee to continue working. A couple of suggestions:
- If the employee has a work-related injury, consider involving your workers’ compensation carrier to determine whether there are any monies from your state workers’ compensation division to assist you in making workplace modifications. In Oregon, such funds may be available through the employer at injury program.
- If you are not sure of an accommodation, consider calling in an expert. This can be accomplished through a phone call to the Job Accommodation Network (JAN), or you can locate a vocational rehabilitation specialist to assist.
- If you do consult an outside resource, like JAN, be careful about ensuring confidentiality. Do not disclose the employee’s name and identifying information.
- Keep an open mind.
- In choosing the accommodation, it is a good idea to understand the employee’s preference, but the employee does not get to choose the accommodation – the employer does. The law requires only that the accommodation be reasonable. Eliminating the requirement to perform an essential job function is not a reasonable accommodation. The employee must still be able to perform the essential job function with an accommodation. Examples of reasonable accommodations include:
- Job restructuring
- Equipment (i.e., sit stand desks, lifting mechanisms, carts, new chairs, modified work stations, etc…)
- Leave of absence
- Change in work schedule
- Job reassignment to an available and suitable job
- Modified workplace policies
For more:Â http://www.lexology.com/library/detail.aspx?g=601d48c8-025b-482a-abf9-4f56bd75c350
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management, Training
P3 Hospitality Industry Risk Report: “Innkeeper’s Limit Of Liability” By Petra Risk Solutions’ Director Of Risk Management Todd Seiders (Video)
[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’.Â
  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.
Comments Off on P3 Hospitality Industry Risk Report: “Innkeeper’s Limit Of Liability” By Petra Risk Solutions’ Director Of Risk Management Todd Seiders (Video)
Filed under Guest Issues, Injuries, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Training
