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For more:Â http://www.scmagazine.com/hotel-tech-trade-association-offers-best-practices-for-reducing-payment-card-risk/article/283129/
Category Archives: Liability
Hospitality Industry Payment Risks: Hotel Tech Trade Association Releases “Secure Payments Framework For Hospitality”; Best Practices Advocates “Tokenization” And “Removal Of All Guest Credit Card Data From Systems”
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Filed under Crime, Guest Issues, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Technology, Theft
Hospitality Industry Property Risks: Missouri Restaurant Fire Starts In “Wood Pile Near Outdoor Smoker”; Spreads To Roof And “Guts Interior”
“…it appears that (the fire) started in a wood pile near a smoker that was attached to the main building…the 
restaurant’s walls were left standing, but the interior was gutted…”
An early-morning fire today that burned down Bandana’s, a popular barbecue restaurant in Crystal City, apparently started in a pile of wood near an outdoor smoker, the fire chief says. Crystal City Fire Chief Tony Bova said the state fire marshal’s office is investigating this morning’s two-alarm blaze, but he said early indications are that the fire was accidental.
No one was injured in the fire, which was reported at about 3 a.m. today at the restaurant on South Truman Boulevard. A passerby saw what appeared to be a trash bin on fire. It turned out to be the outdoor smoker. When the first crews arrived, they saw flames already shooting through the roof.
About 75 firefighters from seven fire departments fought the fire. It took them about an hour to bring the fire under control.
The pile of wood where the fire originated could have been smoldering for hours after the restaurant closed Tuesday night, the chief said.
For more:Â http://www.stltoday.com/news/local/crime-and-courts/fire-destroys-crystal-city-barbecue-restaurant/article_c8df0871-d275-508c-ac51-47e0e3d049e1.html
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Filed under Claims, Fire, Insurance, Liability, Management And Ownership
Hospitality Industry Theft Risks: Alabama Motel Clerk Arrested For Stealing 23 Guests’ Credit Card Information; No Background Check Because It Was “Too Expensive”
“…(the motel clerk) used his position to remove credit card information from 23 customers from the motel database and used 12 of the card numbers in a fraud scheme to steal cash from the business…the owner 
admitted that he did not do a background check prior to hiring this person…the background check was too expensive…”
Mobile police have arrested a man for credit card fraud and trafficking in stolen identities after they say he took credit card information from 23 motel customers. Police said Bryant Onell Niles, 28, worked as a desk clerk at the Baymont Inn Suites in Mobile, where the alleged crimes took place.
Police said he was found in possession of the 11 unused credit card numbers with names and expiration dates belonging to former customers of the motel. Mobile police said last year, Niles was working as a desk clerk at an unnamed hotel when he stole credit card information from a person who had stayed at the hotel.
Police said he used the guest’s information to book hotels for himself and his friends. That’s how authorities say they caught him.
For more:Â http://www.fox10tv.com/dpp/news/local_news/mobile_county/mpd-hotel-clerk-stole-23-credit-card-numbers
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Filed under Crime, Guest Issues, Insurance, Liability, Management And Ownership, Theft
Hospitality Industry Insurance Risks: “Slip And Fall Accidents” And “Cooking Fires” Represent Top Operational Risks For Restaurant Owners
“…more than 3 million foodservice employees are injured each year from slip-and-fall accidents. With an average cost of almost $21,000 per claim, this is a substantial risk when you consider the number of guests 
who also fall each year in a foodservice establishment…”
Cintas Corporation, a nationwide leader in restaurant facility solutions, identified the top 13 hidden risks to restaurant operations in 2013. By identifying potential risks before they become a problem, restaurant owners and managers can reduce their exposure and maximize their bottom line by ensuring the proper programs are in place.
- Slip and falls: According to the National Floor Safety Institute (NFSI), more than 3 million foodservice employees are injured each year from slip-and-fall accidents. With an average cost of almost $21,000 per claim, this is a substantial risk when you consider the number of guests who also fall each year in a foodservice establishment. Protect floors, workers, and patrons with a comprehensive safe-floor program that includes deep cleaning, protection, and ongoing maintenance.
- Cooking fires: By knowing that the majority of restaurant fires occur around 10 a.m., restaurant operators can develop a fire protection system that prevents or limits the spread of cooking fires. Ensure that hood suppression systems are regularly inspected by a licensed fire protection provider so they are always in working order and ready to extinguish a fire. Also, have your kitchen hood and exhaust ducts cleaned of excess grease and fuel at regular intervals.
For more:Â http://www.qsrmagazine.com/news/cintas-reveals-top-13-hidden-restaurant-risks?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+QSRmagazine+%28QSR+magazine%29
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Filed under Guest Issues, Injuries, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management, Training
Hospitality Industry Legal Risks: Oregon Restaurant Chain Sued For “Forcing Minimum-Wage Employees To Cover Shortages In Cash Register”
“…Employees were required to pay kickbacks regardless of the reason for the shortage, regardless of fault and regardless of the impact of the kickback on the employee’s earnings over the pay period…those employees 
were not granted any corresponding credits when the cash register had surplus funds…”
A Portland attorney is suing the state’s largest lottery retailer, alleging that it routinely violated Oregon’s minimum wage law.
Attorney Paul Breed claims that Oregon Restaurant Services Inc., which owns the lucrative Dotty’s deli chain, illegally forced minimum-wage employees to pay “kickbacks†to cover shortages in the cash register at the end of their shifts.
Under state law, tips don’t count toward the minimum wage. In fact, the Oregon Restaurant and Lodging Association has long lobbied the Legislature to allow “tip credit,†so tips could count toward the minimum wage, $8.95 an hour.
No Oregon employers are allowed to deduct money from workers’ wages to cover shortfalls in the till, no matter how much they earn, says Christie Hammond, deputy director of the state labor bureau, known as BOLI. Employers may ask workers to make payments to defray the costs of shortfalls only if they earn more than minimum wage, or the cost wouldn’t cause their wages to fall below minimum wage, Hammond says.
So what are restaurants and other retailers to do when they want to hold employees accountable for missing money in the cash register at the end of the day? Employers have other legal recourse if they think an employee is stealing from them or otherwise losing money, Hammond says. “But they shouldn’t be the judge and jury to decide if the employee is guilty of the shortage.â€
For more:Â http://www.koinlocal6.com/news/local/story/Lawsuit-slams-Dottys-kickback/LroqQJeb4EaClTE2VdLNaA.cspx
Hospitality Industry Legal Risks: New York Restaurant And Nightclub Sued By Employee For “Significant Hearing Loss”; Music Volume At 96 Decibels
“…(the club) began offering its employees earplugs and hearing tests…it was then that she discovered her hearing loss. Initially, she said, one of the club’s executives said she could probably work at the door, but she 
was later told that would not happen. She was also charged retroactively, she said, for additional tests and treatment related to her hearing damage…”
Alexis Clemente knew the music was extraordinarily loud at Lavo, the celebrity playpen in Midtown Manhattan where she worked for two years as a hostess. Ms. Clemente had significant hearing loss in her right ear, most likely caused by noise exposure, an audiologist found. She was told to immediately stop working in loud environments to prevent it from getting worse.
After the test, she told her supervisors about the results, she said, and asked to be placed at the door, slightly removed from the din. But her employers refused, she said, failed to offer her another position, fired her and canceled her health insurance.
This week, she sued. The suit, filed in State Supreme Court in Manhattan, was reported this week by The New York Post.
She often complained about the noise, she said, but her employers did not take action until last summer, after The Times recorded and reported volumes averaging 96 decibels, akin to a power mower, in Lavo’s restaurant. Legally, workers should not be exposed to that volume for over three and a half hours without ear protection. And Lavo employees said the volumes at the downstairs club were far worse.
For more:Â http://www.nytimes.com/2013/02/28/nyregion/ex-hostess-at-lavo-sues-claiming-loud-music-damaged-her-hearing.html?_r=0
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Filed under Health, Injuries, Labor Issues, Liability, Management And Ownership
Hospitality Industry Property Risks: Hawaii Restaurant Fire Caused By Leak From “Corroded Gas Line Fitting”; $25,000 In Fire And Water Damage
“…the fire was started by a gas leak at a fitting to a kitchen table, which had corroded, said Fire Captain Terry 
Seelig, department spokesman…a worker, who was cleaning the kitchen after the restaurant had closed, was treated at the scene for burns to the front of his body before being taken to a burn center…”
A 43-year-old man was taken to the hospital in serious condition Monday after he was burned while cleaning the kitchen of a ramen restaurant in the Mililani Town Center. The flash fire was ignited by a pilot light, which also activated the restaurant’s sprinkler system. The fire was brought under control by 10:30 p.m.
The fire and the water from the sprinkler system caused $25,000 worth of damage in the kitchen of New Genki Ramen at 95-1249 Meheula Parkway.
For more:Â http://www.staradvertiser.com/news/breaking/193327801.html
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Filed under Fire, Injuries, Insurance, Liability, Management And Ownership
“Hospitality Lawyer” January-February 2013 Online Issue Features “Insurance Coverage For Food Service Industry Losses And Business Interruption”
Click on “Hospitality Lawyer” to view online issue
http://hospitalitylawyer.com/
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Filed under Business Interruption Insurance, Insurance, Labor Issues, Liability, Magazines, Management And Ownership, Risk Management
Hospitality Industry Health Risks: Florida Hotel Guests Hospitalized With “Flu-Like Symptoms” Were Exposed To High-Levels Of Carbon Monoxide; Broken Exhaust Fans In Boiler Room Caused Gas To Build Up For Days
 “…broken exhaust fans in the building’s boiler room allowed the room to fill with carbon monoxide…a guest staying (next to boiler room) was hospitalized for similar (flu-like) symptoms…but no one made the connection 
to carbon monoxide exposure, and the guest was not tested…firefighters suspect the carbon monoxide level was high since Friday or earlier…”
Guests at a south Fort Myers hotel may have been exposed to dangerous levels of carbon monoxide at least three days before the building was evacuated Monday. Firefighters responded to Crestwood Suites Extended Lodging off U.S. 41 around 12:45 p.m. Monday and discovered high levels of the deadly gas.
Guests were allowed back inside after firefighters shut off the gas and ventilated the building, but two people were hospitalized for exposure. The two hospitalized guests, who were staying near the boiler room, are in good condition and were hospitalized for observation as a precaution, Knudsen said.
Knudsen said firefighters checked carbon monoxide levels after the two guests called Lee County EMS complaining of flu-like symptoms. Responding firefighters noticed the guests’ proximity to the boiler room and suspected their symptoms were caused by an environmental factor.
Firefighters measured the carbon monoxide level in the boiler room at 2,000 parts per million, and in the lobby at 300 parts per million. Exposure to anything above 600 parts per million carries a high risk of death, according to the Agency for Toxic Substances & Disease Registry website. Patients can experience symptoms including drowsiness, weakness, nausea, headaches and coma at levels of 160 to 1,000.
For more:Â http://www.news-press.com/article/20130226/NEWS0117/302260021/Cause-guests-flu-south-Fort-Myers-hotel-Carbon-monoxide
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Filed under Guest Issues, Health, Liability, Maintenance, Risk Management, Training
Hospitality Industry Legal Risks: Texas Club Owner Ordered To Pay $10.5 Million To Family Of Woman Killed By “Monster Truck” In Parking Lot; “Dram Shop” Laws Hold Company Liable For Over-Serving Alcohol To Driver
“…(the plaintiff) sued Crutchfield and High Expectations Hospitality, the corporate name for Spearmint Rhino, pointing to state “dram shop†laws that allow a business to be held liable if it serves alcohol to someone who 
was clearly intoxicated and ended up causing harm to others…”
The parents of a 23-year-old woman killed by a monster truck outside a gentlemen’s club have won a $10.5 million civil verdict against the driver and the club for serving him alcohol. Kasey McKenzie died after she was run over in March 2011 by a pickup truck elevated on monster tires in the parking lot of the Spearmint Rhino club in Dallas. The driver of the truck, Eric Crutchfield, was drunk and has since pleaded guilty to manslaughter.
A Dallas civil jury on Tuesday awarded $4 million to the parents for mental anguish and $3.5 million for loss of companionship, along with about $3 million in other damages and expenses.
Michael Schmidt, an attorney for McKenzie’s parents, said the club served Crutchfield 10 or more drinks and shots on the night of McKenzie’s death. “This case basically is addressing a problem that we have, certainly in Dallas, of irresponsible establishments over-serving patrons and violating the law,†Schmidt said.
Schmidt said McKenzie was hit by Crutchfield’s truck while walking in the parking lot after 2 a.m. on March 17, 2011.
According to a police report, Crutchfield “had no idea he had run over†McKenzie. A blood test after the incident showed his blood-alcohol level was 0.18 percent, more than twice the legal limit.
For more:Â http://www.azcentral.com/news/nationworld/free/20130220texas-monster-truck-death-lawsuit-verdict.html
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Filed under Crime, Guest Issues, Injuries, Insurance, Liability, Management And Ownership, Risk Management, Training
