Category Archives: Liability

by | April 17, 2013 · 7:22 am

Hospitality Industry Legal Risks: Hotel And Restaurant Hiring Policies Must Be Neutral On Employee “Sex Stereoyping”; EEOC To Enforce “Broad Definition Of Sex Discrimination”

The EEOC Title VII effort to protect LGBT (Lesbian, Gay, Bisexual and Transgender) workers relies on a broad definition of sex discrimination, treating harassment and discrimination claims under a “sex stereotyping” theory…The EEOC’s new emphasis on LGBT protections will shape its EEOCfuture en­­force­­ment and litigation against private employers, especially in states that don’t protect gender identity or sexual orientation. Expect the EEOC to educate the LGBT community about its recent rulings. Also expect more charges and more vigorous investigations…Make sure your policies are neutral with regard to sexual orientation, gender identity and expression, and prohibit harassment based on sexual preference, gender stereotypes or intolerance.

Federal law doesn’t prohibit discrimination against lesbian, gay, bisexual and transgender (LGBT) workers. Instead, LGBT protections are a varied patchwork of judicial and agency interpretations and state and local laws that make discrimination actionable only under specific circumstances. LGBT workers continue to face employment discrimination with relatively few legal protections.

In response, the EEOC has begun an effort to protect LGBT workers’ rights by broadly interpreting Title VII of the Civil Rights Act of 1964. The EEOC’s newly released Strategic Enforcement Plan for 2013-2016 lists “coverage of lesbian, gay, bisexual and transgender individuals under Title VII” as one of its top six national en­­forcement priorities. Expect the EEOC to take significant enforcement actions soon and litigate issues more aggressively.

No national law explicitly bans workplace discrimination based on sexual orientation or gender identity. Title VII’s language only protects individuals on the basis of “race, color, religion, sex, or natural origin.” LGBT advocates have tried to amend Title VII to add sexual orientation, expression and identity, but have consistently failed.

For more:  http://www.businessmanagementdaily.com/35121/eeoc-steps-up-efforts-to-protect-against-lgbt-bias-harassment

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by | April 14, 2013 · 6:56 am

Hospitality Industry Employment Risks: North Carolina Restaurant Franchisee Faces “Civil Contempt” Charges For Breach Of EEOC “Sexual Harassment Lawsuit” Settlement

“…an 18-year-old female employee was being sexually harassed by a male coworker who talked to her about his sex life in addition to making EEOCsexual gestures toward her…the suit goes on to claim that the female worker was fired after police went to the restaurant to investigate her complaint…The decree required the company to pay $17,500 in relief to the female employee in addition to establishing or enforcing policies against sexual discrimination and retaliation for reporting sexual harassment…”

A franchisee operating the Dairy Queen restaurant in Winston-Salem’s Hanes Mall is being held in civil contempt by a federal judge because it breached terms of an agreement resolving a sexual harassment lawsuit, according to the Winston-Salem Journal. In December 2011, the agency filed a lawsuit against YS&J Enterprises Inc. in U.S. District Court for the Middle District of North Carolina.

Back pay and monetary damages were sought in the suit.

According to the Journal, the company entered into a consent degree with the EEOC, which was signed by Judge James Beaty in October.

For more:  http://myfox8.com/2013/04/13/dairy-queen-at-hanes-mall-held-in-contempt-over-harassment-suit/

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by | April 12, 2013 · 6:38 am

Hospitality Industry Theft Risks: East Coast Hotels Victimized By Man Who “Skipped Out On Hotel Bills” While Posing As Corporate Employee; $60,000 For A Presidential Suite

“…housekeepers found paperwork in the room belonging to (defendant)…a Residence Inn employee told police she received a call from Hotel Theft By DeceptionSerra in which he stated he would pay the bill if the Residence Inn would sign a waiver promising not to charge him with any crime. No agreement was made…Police then were notified the Residence Inn received an email from someone claiming to be a Raytheon employee, stating Serra would be staying there for 15 nights. The email address was identical to the one used in Serra’s February stay, police said…”

A Lowell man is accused of skipping out on bills in upscale hotels in seven states, running up charges while posing as an employee of major corporations.

In one case, prosecutors allege that in March, Michael Serra ran up a $60,000 bill for a stay in the presidential suite at the Ritz-Carlton in Boston under the name Dennis Colling. Serra allegedly said he worked for Citigroup, but does not.

When confronted by Tewksbury police and a U.S. Secret Service agent, Serra allegedly confessed to committing crimes up and down the East Coast for two to three years. The Residence Inn at 1775 Andover St., Tewksbury, reported that a person named Carter Whitmore, who represented himself as a Raytheon employee, skipped out on a $6,349 bill in February. Court documents state that Raytheon refused to pay for the room because it had no employee by that name.

For more:  http://www.lowellsun.com/local/ci_23010643/city-man-held-hotel-fraud

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by | April 11, 2013 · 6:34 am

Hospitality Industry Legal Risks: New York Restaurant And Caterer Sued For “Retaining 20% Service Personnel Charge”; Seeking Class-Action Status For More Than $1 Million In Tips

“…(the complaint states) a ‘reasonable customer’ would have believed the surcharge to be a gratuity…if customers asked if the waiters and waitresses got tips, they were ordered ‘to respond, as instructed by defendants, that they did receive tips’…(the Hospitality Industry Wage Violation Lawsuitsdefendants) knowing or intentional demand for, acceptance of, and/or retention of the mandatory charges paid by customers when contracting with defendants, when such customers were led to believe that such mandatory charges would be paid to plaintiff, defendants have willfully violated New York law…(plaintiffs) seek class certification, restitution of the tips, and costs…”

A class action claims an upstate New York restaurant and caterer cheated its workers out of more than $1 million in tips.

The defendants added a 20 percent “service personnel charge” to all its banquet hall bills, but servers never saw dime one of it, lead plaintiff Ryan Picard claims in Albany County Supreme Court.

Picard claims the family-owned businesses ran the game for 6 years, at the expense of more than 100 workers.  Named as defendants are six entities associated with the Mallozzi family of suburban Schenectady, who operate bakery, restaurant, hotel and catering businesses in Albany and Schenectady counties.

For more:  http://www.courthousenews.com/2013/04/11/56574.htm

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by | April 10, 2013 · 8:20 am

Hospitality Industry Health Risks: Hotel And Restaurant Food Handlers Are The Major Source Of Reported “Foodborne Hepatitis A Outbreaks”; Improved Hygiene And Preventive Vaccinations Lower Virus Transmission

“…the source of most reported foodborne hepatitis A outbreaks had involved infected food handlers, such as those Hepatitis A in Hospitality Industryin restaurants or those who prepare food for social events such as weddings…(workers) who have had possible exposure to Hepatitis A and get the necessary shots within 2 weeks of exposure…will have long-term protection against the virus… people infected with the virus are the most infectious two weeks before they actually become ill (and) can be passing the disease on to other people without even knowing they have it…”

What could be better than dining with friends or family at a popular upscale candlelit restaurant in New York City — a restaurant with an “A” sanitation grade from the city’s Department of Health and Mental Hygiene?

While that’s how the story began for many of the people who ate at Alta restaurant in the West Village from March 23 to April 2, it ended with the jolting news that if they had had dessert during that time period, they should get a shot (and another one 6 months later) to protect themselves against hepatitis A.

The restaurant’s manager, Manny Solano, told reporters that a pastry chef who had traveled to Mexico discovered she had hepatitis A after going to a doctor because she wasn’t feeling well. It turned out she had contracted the virus during her trip south of the border. In the case of a restaurant employee, hepatitis A can be spread to food or surfaces — and from there to people dining or working at the restaurant — if the worker doesn’t follow basic hygiene practices, chief among them washing his or her hands after going to the bathroom.

And while most food handlers with hepatitis A do not transmit the virus to fellow workers or restaurant patrons (based on surveillance data), many hundreds of restaurant workers have hepatitis A every year, according to the article.

The article concludes by saying that reducing foodborne transmission of the virus can be achieved by improving food production and food handler hygiene and by providing preventive vaccinations to people at risk for infection.

For more:  http://www.foodsafetynews.com/2013/04/dessert-followed-by-a-hepatitis-a-shot/#.UWWNA0nn9et

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by | April 9, 2013 · 6:37 am

Hospitality Industry Health Solutions: Hotel And Restaurant Kitchen Cleanliness Reflects Employees’ “Commitment To Businesses’ Success”

“…the cleanliness of a kitchen is an indicator of workplace culture and the commitment of your employees to contribute to enterprise success Hospitality Industry Kitchen Cleanlinessand value. If you see it getting  messy, you may have underlying problems that need to be addressed immediately…if (employees) are not washing the kitchen in the workplace, it means that they see  themselves more as renters than as owners. It means that they feel transitory,  that they’re passing through. They don’t have a real psychological contract with  the company, space, workplace. That’s a problem.”
So stop what you’re doing and deal with the problem…”

One of the best ways to predict the quality of meals and service at a  restaurant is to examine the restroom. Restrooms — including toilets, tiles and washbasins — are among the  easiest rooms to clean. If a restaurant staff can’t keep the restroom clean,  then you can be sure that the kitchen will be worse. It doesn’t matter if it’s a  fancy, upscale restaurant or simple diner.

Messy kitchens tend to breed foodborne pathogens, poor quality food and  indifference to customers. Conversely, clean kitchens reflect healthiness,  passion for quality and desire to delight customers. That’s why the world’s best  kitchen staffs — even many quick-serve restaurants — consider organization and  technique the foundation of everything else.

Read more: http://www.mediapost.com/publications/article/197645/what-workplace-kitchens-say-about-the-health-of-yo.html#ixzz2PyRj0cDc

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by | April 7, 2013 · 6:51 am

Hospitality Industry Payment Security: More Restaurants And Hotels Are Using “Mobile Credit Card Readers” To Increase Efficiency; FTC Report Cites Financial Information Security Issues

Mobile Payment Report FTC-page-001

The report encourages industry-wide adoption of strong measures to ensure security throughout the mobile payment process. The report addresses ways sensitive financial information can be kept secure during the mobile payment process, such as through end-to-end encryption. The possibilities for encryption listed in the report cover everything from the authentication of data during the transaction to the secure storage of information on a mobile device. Click on “Mobile” to read report.

“The Smelly Cat Coffee Shop in Charlotte is one of the nation’s top users of the Square card reader. The business uses the device for all of its credit card transactions…(the restaurant) says customers’ card info is safe because the program doesn’t allow cashiers to see customers’ information when they swipe…”

Mobile credit card readers like the Square and Intuit devices are growing in popularity around the country. The devices offer merchants the ability to accept credit card payments anywhere and are often less expensive than traditional card swiping technology.

But the Federal Trade Commission and consumer watchdog groups are urging consumers to be vigilant about protecting their financial information when using the devices. The FTC recently released a report on the growing popularity of mobile payment devices. The report did not name any specific threats that come from using mobile card devices.  The agency is urging consumers, as well as merchants, to make sure that financial data is protected in each transaction.

The Better Business Bureau said consumers should make sure they trust the merchants they allow to swipe their debit and credit cards using the devices. It is buyer beware. According to Janet Hart of the BBB, people should be careful how, when, and where they use their credit card; because, there is the chance data could be misused.

Staff at the shop said they have not had any negative reactions from customers using the device at the store.

“It’s a similar security that you would find on a receipt, on a printed receipt, that a waiter or waitress would be exposed to in a restaurant,” said Burleson. However, advocates said consumers should use the same caution when using the mobile readers that they would use when ordinarily swiping their credit cards.

For more:  http://centralny.ynn.com/content/top_stories/654110/mobile-card-readers-spike-in-popularity–groups-urge-concern-over-possible-id-theft/

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by | April 6, 2013 · 6:23 am

Hospitality Industry Legal Risks: North Carolina Restaurant Operator Sued By EEOC For “Religious Discrimination”; Muslim Food Prep Worker Fired For Refusing To Cut Off Beard

“…(plaintiff) applied for a job with a Bojangles’ restaurant in Charlotte and was interviewed for a food prep position…the manager informed Charles that he might need to cut his beard, to which Charles responded that he could not cut his beard for religious reasons, informing her that EEOChe was a Muslim. Charles was hired and worked at the restaurant on May 18 without incident…Charles reminded the manager that he could not cut his beard because of his religion, and requested an accommodation of wearing a beard net, similar to a hair net, which the restaurant manager refused. The restaurant manager told Charles to leave the restaurant, and to not return to work until he shaved off his beard. Charles refused to shave his beard and was consequently fired…”

Bo-Cherry, Inc., a North Carolina corporation that operates several Bojangles’ restaurants in the Charlotte metro area, violated federal law when it failed to accommodate an employee’s religious beliefs and then fired him because of his religion, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

According to the EEOC’s complaint, Devin Charles has been a practicing Muslim for the past 14 years. As a male Muslim member of his sect of the Sunni branch of the Islamic faith, Charles is required to grow and maintain a beard and is not allowed to trim or cut his beard unless it exceeds the length of his fist when holding his beard in his closed hand under his chin, commonly referred to as “fist length.” In accordance with his sincerely held religious beliefs, Charles has not trimmed or cut his beard unless it exceeded a fist length

The manager instructed Charles that her supervisor, the district manager, had come to the restaurant, seen Charles’ beard and instructed her to tell Charles that he needed to shave off his beard to continue working for Bojangles’.

Title VII of the Civil Rights Act of 1964 requires employers to make reasonable accommodations for the sincerely held religious beliefs of employees as long as doing so does not pose an undue hardship on the employer. The EEOC filed suit in U.S. District Court for the Western District of North Carolina, Charlotte Division (EEOC v. Bo-Cherry, Inc. d/b/a Bojangles, Civil Action No. 3:13-cv-00210) only after first attempting to reach a pre-litigation settlement through its conciliation process. The EEOC seeks back pay, compensatory damages, punitive damages and reinstatement or front pay. The complaint also seeks injunctive relief.

“Under federal law, employers have an obligation to attempt a fair balance between an employee’s right to practice his or her religion and the operation of their business,” said Lynette A. Barnes, regional attorney for the EEOC’s Charlotte District Office. “This case demonstrates the EEOC’s commitment to fighting religious discrimination in the workplace.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/4-4-13.cfm

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by | April 3, 2013 · 5:34 am

Hospitality Industry Employment Risks: Wisconsin Restaurant Servers File “Wage Violation Class-Action Lawsuit”; Claims Owners “Transferred Cost Of Doing Business” To Workers

“…the complaint says servers were forced to pay for their uniforms, aprons, hot pads to serve fajitas, order pads and name tags — and that’s not Hospitality Industry Wage Violation Lawsuitsall…anytime a customer walked out without paying the bill, the servers had to pay. Anytime a customer said, this is not what I ordered, food or alcohol drink, the server had to pay for that…the owners were essentially transferring the cost of doing business on to the servers, who were only being paid $2.33 an hour…”

A group of servers at La Fuente restaurant have filed a class action lawsuit against the restaurant — saying they are sick of footing the bill for food sent back to the kitchen. The claim says servers were expected to work and not get paid — and that they were stuck with the bill when customers would skip out. Larry Johnson is a labor attorney representing servers at two La Fuente locations. Johnson says it was written policy to have the servers start shifts early and prepare the restaurant, but they weren’t allowed to clock in until customers arrived, and so now, a server has served the owners with a class action lawsuit.

“Setting up tables, putting rolling silverware, filling salt shakers, working, making coffee, all that kind of stuff to get the restaurant ready,” Johnson said.

The suit now requests those unpaid wages and if they win the case, the court could double it, along with attorneys fees. Johnson says it is too early to know how much money that could be, but he says it’s the price companies pay when they don’t follow the law.

For more:  http://fox6now.com/2013/04/02/group-of-la-fuente-servers-file-class-action-suit-against-owners/

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by | April 2, 2013 · 1:27 am

Hospitality Industry Property Risks: Wisconsin Restaurant Fire Caused By “Improperly Stored Ashes”; $20,000 In Damage To Walls And Siding

Restaurant FireAshes that weren’t properly disposed of caught the wood siding on fire this morning, causing around $20,000 in damage.  The building had to be ventilated of smoke.

There’s some cleaning up to do before McGrath’s Fish House in Milwaukie can re-open for business.

A police officer patrolling the parking lot spotted the flames. Firefighters say make sure to put ashes in a non-combustible container of water to cool them before putting in the trash.

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