Category Archives: Liability

by | June 7, 2013 · 5:51 am

Hospitality Industry Legal Risks: Hotel Management Must Evaluate And Prepare For Potential “Punitive Damage Claims” In Lawsuits Arising From Privacy, Over Service Of Alcohol And Criminal Actions Of Employees

“…the No. 1 priority is effective case evaluation and resolution. Early factual investigation is critical in determining what happened, why it happened and who was involved. Knowing and preserving the correct version of facts and events with effective reporting mechanisms is essential Hospitality Industry Lawsuitto knowing what kind of claim possibly can be presented and what kind of exposure exists…”

“…it is critical to evaluate the potential punitive exposure early and assess the potential for a punitive claim to get to a jury. Always consider the risk that punitive damages may get to a jury, how a jury will receive the evidence and whether your hotel could be punished by a jury that is attempting to make a statement that these incidents will not be tolerated…”

Hoteliers may face the problematic public-relations case that contains a punitive damages claim. These claims include: invasion of privacy, inappropriate surveillance, over service of alcohol, and criminal actions of employees and third parties. These cases are difficult for members of the hospitality industry who pride themselves on showing customers a positive experience, want good feedback and want customers to return to their hotel.

Securing and preserving evidence, which includes photographs, videos, an accident report, incident statement and/or witness statements must be undertaken to document what the incident involves. If photographs and videos are not preserved once a hotel has notice of a claim, a court could instruct the jury that they can infer the hotel destroyed the evidence for a reason. It is critical to use technology to best find and preserve evidence. No potential accident can be overlooked as a hospitality group never knows what accidents can turn into a possible lawsuit.

For more:  http://www.hotelnewsnow.com/Articles.aspx/10625/How-to-respond-to-punitive-damages-claims

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by | June 6, 2013 · 6:15 am

Hospitality Industry Legal Risks: Maryland Restaurant Owner Faces “Sexual Harassment And Retaliation” Charges In Lawsuit Filed By EEOC

“…the EEOC seeks injunctive relief prohibiting Basta Pasta from engaging in sexual harassment or retaliation, as well as lost wages and compensatory and punitive damages for Smith, Doe, Kokkinakos and other similarly-situated female employees, and other affirmative EEOCrelief…’No employee, male or female, should have to endure being subjected to offensive sexual comments and touching in order to earn a living, but the unlawful harassment is even more vile and intolerable when it includes sexual assaults by a company owner’…”

SPOA, LLC, which runs the Italian restaurants Basta Pasta in Fallston and Lutherville-Timonium, Md., subjected female employees to flagrant sexual harassment and fired a manager who complained about the harassment, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

The EEOC alleged that the restaurant owner repeatedly subjected female employees, some of whom were teenagers, to unwelcome and offensive sexual harassment, including touching them on their buttocks, lower backs and shoulders; rubbing his genitalia against the buttocks of female employees; leering at female employees and making comments about their bodies, including calling them “sexy” or “hot;” making sexually suggestive remarks and crude sexual innuendos; and asking for massages.

The EEOC further charged that the owner pressured female employees to have alcoholic drinks at the end of their shifts and acted offended if they did not stay and drink.  The EEOC alleges that the owner gave one female employee, “Mary Smith,” alcohol, causing her to pass out and later wake up vomiting, and that Smith believed the owner drugged her in an attempt to sexually assault her.  The EEOC also charged that the owner took another female employee, “Jane Doe,” to his house, purportedly to talk about a management opportunity, but instead Doe believes he drugged and sexually assaulted her.  (Given the public interest in protecting the identities of sexual assault victims and attempted sexual assault victims, the EEOC is utilizing pseudonyms.)

The sexual harassment was so intolerable that these two employees felt compelled to quit their jobs, the EEOC says in the lawsuit.  Jane Doe was 18 years old when she started working for the company and 21 years old when she was forced to quit her job due to the sexual harassment.

The EEOC also charges that a restaurant manager, Dimitra Kokkinakos, had complained to management about the owner’s sexually offensive behavior but the company failed to take action to stop the harassment.  After learning that Kokkinakos had been in touch with Jane Doe, the restaurant warned Kokkinakos to “keep her mouth shut” and fired her in retaliation for her opposition to the sexual harassment.  The restaurant also threatened Kokkinakos when she participated in the EEOC investigation, including pressuring her to recant her testimony, according to the lawsuit.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/6-5-13.cfm

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by | June 5, 2013 · 6:33 am

Hospitality Industry Legal Risks: Texas Restaurant Group Faces “Wage Violation Class-Action Lawsuit” Over Tip Sharing, Food Discount Deductions

“…(the lawsuit) alleges that a Rainforest Cafes policy illegally required servers to share their tips with some employees who were not part of the wait staff…(plaintiffs were forced) to split tips with hosts, who do not qualify as wait staff because they do not serve food or beverages, or clear Hospitality Industry Wage Violation Lawsuitstables…The suit also targets a “discount program” at Rainforest Cafe that deducts a flat fee from employee paychecks to cover any drinks consumed at work and provides a discount on food…the deduction is too high and violates state law by requiring employees to pay more for food than it costs the employer…”

A Boston law firm filed a suit seeking class-action status Monday against one of the nation’s largest restaurant groups alleging the company’s Rainforest Cafe in Burlington violated state wage laws. Two servers employed at the Rainforest Cafe since 1998 are named plaintiffs in the case. Hundreds of workers might qualify for damages, according attorney Hillary Schwab of Fair Work, P.C.

The defendant, Landry’s Inc., is the Houston parent company of more than 40 restaurants chains across the county with total US sales of about $1.67 billion last year, according to restaurant industry research firm Technomic. Landry’s, run by chief executive Tilman J. Fertitta, a Houston billionaire, owns a number of restaurants groups with a presence in Massachusetts, including Morton’s The Steakhouse, Chart House, McCormick & Schmick’s, and the Oceanaire Seafood Room.

The plaintiffs are seeking restitution for all gratuities not received, wages not paid in full, money deducted from pay, and all court and attorney fees. Schwab said she will attempt to determine whether the tip practice is limited to the Rainforest Cafe or is a Landry’s corporate policy that might affect other restaurants in the state.

For more:  http://www.bostonglobe.com/business/2013/06/03/rainforest-cafe-servers-sue-restaurant-over-tip-policy/IOwix0twRIooe1FP8Cz4fJ/story.html

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by | June 4, 2013 · 6:04 am

Hospitality Industry Risk Solutions: “3rd Global Congress On Travel Risk Management” To Be Hosted By HospitalityLawyer.com On Sept. 30 – Oct 1 In Houston, TX (Video)

[youtube=http://www.youtube.com/watch?v=ij1BHdG4N-8&feature=player_embedded]

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HospitalityLawyer.com

HospitalityLawyer.com, in coordination with the Greater Houston Convention & Visitors Bureau, will host the 3rd Global Congress on Travel Risk Management, September 30 to October 1, 2013, in Houston, Texas, at the Galleria Omni Hotel. The Global Congress focuses on  solutions enabling businesses and governments to meet their Duty of Care to mobile employees and protecting mobile data.

The travel, tourism and hospitality industries are a $3.5 trillion global economic powerhouse encompassing transportation, lodging, and venues and events. Governments around the world spend trillions on infrastructure and travel support systems. Disruptions are costly, both financially and in customer goodwill. The Global Congress’s objective is to facilitate the delivery of safe, secure and uninterrupted travel via an all-encompassing public-private dialogue dedicated to the sharing of best practices for issues faced by the global travel, tourism and hospitality industries.

For more:  http://www.hospitalitylawyer.com/?post_type=gc&p=565

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by | June 2, 2013 · 6:50 am

Hospitality Industry Safety Risks: Alabama Hotel Guests Hospitalized By “Excessive Pool Chlorine Exposure”; Employee Failed To Turn Pump On

Hotel Pool Chlorine Health Issues“…employees of the hotel were putting chlorine in the pool without the pump on.  When the pump was turned back on, chlorine came out too fast instead of gradually…”

Nine people were sickened Sunday after coming into contact with too much chlorine at the Renaissance Birmingham Ross Bridge Golf Resort & Spa in Hoover.

Hoover Fire and Rescue were called out Sunday afternoon to the hotel pool where nine people had become ill.

Five people were treated on the scene. Two adults and two children were transported to local hospitals.
The pool was closed down for a short time but has since been reopened.

For more:  http://www.myfoxal.com/story/22427405/nine-people-sick-after-coming-into-contact-with-chlorine-at-a-hoover-hotel-pool

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by | June 1, 2013 · 6:41 am

Hospitality Industry Safety Risks: Hawaii Hotel Fined $48,000 By OSHA For 14 “Workplace Safety And Health Violations”; Lack Of Employee Training

According to the OSHA release, the serious violations at Kauai Beach Resort involved storage, handling and labeling of propane tanks, electrical wiring, electrical work practices by untrained maintenance personnel, and training and use of personal respiratory and Hospitality Industry OSHA Safety And Health It's The Lawelectrical protective equipment.

A popular Kauai hotel received 14 workplace safety and health standards violations on Thursday, and nine of them were serious enough for the U.S. Department of Labor’s Occupational Safety and Health Administration to take action. Kauai Beach Resort in Lihue faces a total of $48,000 in proposed fines. Kai Management Services of Lihue, the management company for Kauai Beach Resort, received the violations following a routine inspection conducted on Feb. 14 by the OSHA Honolulu Area Office.

  • Workers mixing chlorine for swimming pools do not present a hazard to swimmers. Failing to follow proper safety precautions puts the workers health in jeopardy and it is the responsibility of the employer to train them, he said.
  • The maid service handles chemicals and it is the responsibility of management to ensure they are trained and using safety equipment, he said.
  • Untrained workers altering the wiring of an electrical panel in performing day-to-day maintenance is a serious violation. Management must ensure that only qualified personnel work on energized circuits, he said.
  • Another violation included the incorrect use of flexible cords as substitutes for fixed wiring. In some instances this occurs from daisy-chaining several electrical strips in an industrial kitchen, where an overload from high amperage appliances could cause melting and a fire hazard, Lemke said.

For more:  http://thegardenisland.com/news/local/kauai-beach-resort-faces-k-in-fines-for-safety-violations/article_a38a085c-c9b5-11e2-828f-0019bb2963f4.html

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by | May 31, 2013 · 6:00 am

Hospitality Industry Legal Risks: Hawaii Restaurant Group Settles “Sexual Harassment” Lawsuit With EEOC For $150,000, Harassment Training For All Employees & Managers

“…the (kitchen) supervisor subjected the workers, some of whom were between the ages of 17 and 19, to sexual comments, language and advances, the EEOC said.  Upon reporting the harassment to the general manager, the EEOC said, Panda Express management failed to take EEOCenough action to stop or correct the situation…”

Chinese quick service restaurant giant Panda Express will pay $150,000 to settle an EEOC lawsuit on behalf of at least three female teenagers who were allegedly sexually harassed between 2007 and 2009 while working in a restaurant in Kauai, Hawaii, the federal agency announced today.

Sexual harassment violates Title VII of the Civil Rights Act of 1964.  The EEOC filed its lawsuit in September 2012 in U.S. District Court for the District of Hawaii (EEOC v. Panda Express, Inc. and Panda Restaurant Groups, Inc., Case No. 1:12-cv-00530-SOM-RLP) after first attempting to reach a pre-litigation settlement through its conciliation process.  As part of the settlement announced today, the parties entered into a two-year consent decree requiring Panda Express to designate an in-house equal employment opportunity (EEO) coordinator; revise and distribute its anti-harassment policy and procedures; and provide annual sexual harassment training to all employees in Kapaa and to all general managers in the state of Hawaii.  EEOC will monitor compliance with the agreement, and Panda Express agreed to reinforce its protocols relating to complaints of sexual harassment in its Hawaii region.

“We commend Panda Express for working with the EEOC to correct serious lapses in dealing with sexual harassment in the workplace,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Hawaii in its jurisdiction.  “We trust that Panda Express’s company values are consistent with the goals of the EEOC’s mission, and we commend them for agreeing to broader injunctive remedies to ensure that the workers in Hawaii are protected.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/5-29-13a.cfm

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by | May 30, 2013 · 5:58 am

Hospitality Industry Crime Risks: New York Hotel Rooms Burglarized By Man Who Stole Housekeeping Master Key

“…An investigation found the housekeeping master key had been stolen. Maintenance personnel reported an individual had been seen using a card to enter a room other than his own, and more guests reported thefts and observations of someone entering rooms without authorization…A hotel thefthotel guest on the second floor claimed that when he returned to his room at 7 p.m. he found his suitcases unzipped, marks on a locked briefcase, two watches and other personal items missing, as well as the dresser from the room…”

After allegedly stealing the master key from the Super 8 Hotel on Route 17, a Hillburn, N.Y., man was arrested on charges of burglary, theft, and drug possession, according to Police Chief James Batelli. Frank Hadley, 40, who was a registered guest in a room on the third floor of the hotel from May 14-21, was arrested Monday, May 20, after an investigation by the Mahwah Police Department found he had stolen the master key and broke into hotel rooms.

Another guest, who was also staying on the second floor, reported that he was wakened by a knock at his door followed by the sound of the key card accessing the room. The guest went to grab the door and confronted the perpetuator who “rambled about having problems with satellite reception on the third floor,” Batelli said. The customer didn’t get a good look of the man at his door because of poor lighting, he said.

For more:  http://www.northjersey.com/news/209458021_Alleged_Mahwah_hotel_theif_stole_master_key.html

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by | May 27, 2013 · 6:37 am

Hospitality Industry Employment Risks: Mississippi Restaurant Sued For “Race Discrimination” By EEOC; Hired Only Whites As Servers, Bartenders And Other Front-Of-The-House Positions

“…The EEOC  claims Stone Pony Pizza refused to hire African-American  applicants as a class for certain positions because  of their race.  Stone Pony is alleged to  have hired only whites for front-of-the-house positions such as server,  hostess, waitress, and bartender, and hired African-EEOCAmericans for  back-of-the-house positions such as cook and dishwasher. Additionally, the EEOC  charged that Stone Pony maintained a  racially segregated workforce and failed to keep job applications as required  by law…”

Stone  Pony Pizza, Inc., a Clarksdale pizza restaurant and bar, violated federal law  by refusing to hire a class of African-American applicants because of their  race, according to a lawsuit filed on Friday, May 17, 2013 by the U.S. Equal  Employment Opportunity Commission (EEOC).

The EEOC filed suit, Civil Action No., 4:13-cv-00092, filed in U.S. District Court for the Northern District of  Mississippi, Greenville Division, after first attempting to reach  a pre-litigation settlement through its conciliation process. The  suit was brought under Title VII of the Civil Rights Act of 1964 which  prohibits discrimination based on race and color.  The suit seeks monetary relief in the form of  back pay, compensatory and punitive damages, hiring relief and an injunction  against future discrimination.

“Employers simply cannot  refuse to hire applicants based on their race, nor can they segregate employees  into certain positions based upon their race,” said Katharine Kores, district  director of the

EEOC’s Memphis  District Office.  “Applicants should be  evaluated based upon their qualifications, not the color of their skin.”

Eliminating barriers in recruitment and hiring, especially  class-based recruitment and hiring practices that discriminate against racial,  ethnic and religious groups, older workers, women, and people with  disabilities, is one of six national priorities identified by the Commission’s  Strategic Enforcement Plan.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/5-20-13.cfm

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by | May 26, 2013 · 6:38 am

Hospitality Industry Theft Risks: Indiana Hotel “Human Resources Employee” Fired After Issuing “Fraudulent Paychecks” To Himself

“…the HR director was solely responsible for issuing the paychecks for all employees at the hotel…Police were told that more than $7,045 was hospitality industry employee theftpaid to the employee beyond his regular earnings for his job, beginning in December…his boss told police that an internal investigation turned up evidence of the bogus extra paychecks, prompting the worker’s firing…”

A hotel executive has been fired after the hotel’s manager told police that he had been writing extra paychecks to himself. Airport police were called this week to the Radisson Indianapolis Airport, where the general manager handed officers copies of fraudulent paychecks that had been written to the hotel’s director of human resources.

General Manager Nitin Talati declined to comment in his hotel’s lobby on Thursday. His staff could be heard telling phone callers that the hotel was entirely booked for this week’s Indianapolis 500.

Police said Talati told them he had called the employee in when the checks were discovered and the worker admitted to writing himself the extra paychecks. The worker then signed a promissory note on April 12 agreeing to repay the money. Talati reported to police that none of the money had been repaid, so his company now wants to press charges.

For more:  http://www.theindychannel.com/news/call-6-investigators/former-hotel-executive-at-radisson-indianapolis-airport-accused-of-writing-himself-extra-paychecks

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