Category Archives: Liability

by | November 10, 2012 · 7:57 am

Hospitality Industry Employee Risks: California Hotel Settles "Sexual Harassment And Retaliation Lawsuit" With EEOC For $195,000

In 2010, a female employee filed the EEOC charge of discrimination alleging that a male supervisor made sexual comments and referenced an image of a sexual nature.  The female employee further alleged that upon reporting the sexual harassment, the male supervisor retaliated against her by issuing written discipline and treating her differently.

DNC Parks & Resorts at Tenaya, Inc. which operates Tenaya Lodge, a hotel and resort near Yosemite National Park in California, will pay $195,000 and furnish other relief to settle a federal charge of sexual harassment and retaliation filed with the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

Following an EEOC investigation, the director of EEOC’s Fresno Local Office determined that there was reasonable cause to believe that the female employee was sexually harassed due to her gender, female, and that she was subjected to retaliation for reporting the harassment, a violation of Title VII of the Civil Rights Act.  The EEOC also found reasonable cause to believe that a class of other female employees was also sexually harassed due to gender.  Tenaya Lodge denied the allegations of sexual harassment and retaliation, and the company did not admit to liability while agreeing to settle the matter.

Following the EEOC’s determination, the EEOC entered into a one-year conciliation agreement with Tenaya Lodge and the female employee in question.  The agreement effectively settles the case administratively, thereby avoiding litigation.  The agreement provides for $100,000 in monetary relief for the female employee who filed the EEOC charge.  An additional $95,000 is designated as a class fund for eligible claimants who also encountered sexual harassment and/or retaliation while working at Tenaya Lodge.

Aside from the monetary relief, Tenaya Lodge will provide equal employment opportunity training for all current employees and, thereafter, for all new hires in the language that the employee understands, along with additional training for managerial and human resources staff on how to deal with discrimination, harassment and retaliation.  Tenaya Lodge also agreed to post a notice about the settlement in English and Spanish; to report future instances of discrimination to the EEOC; and to publicize the settlement via press release.

Workers have the right to report sexual harassment or other forms discrimination on the job without negative repercussions,” said Melissa Barrios, director of the EEOC’s Fresno Local Office.  “We commend Tenaya Lodge for working with the Commission to resolve this matter and for agreeing to implement measures to protect their employees from harassment, discrimination and retaliation.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-7-12.cfm

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by | November 9, 2012 · 6:49 am

Hospitality Industry Crime Risks: Tennessee Hotel Rooms Broken Into By "Convicted Burglar" Using "Chiseled Tip Knife" And Keycards Stolen From Cleaning Carts

“…Police said Brown was carrying seven keycards from several hotels as well as knife with a chiseled tip that could be used to defeat locking mechanisms…He told police he had taken the keys from a cleaning cart…”

Police are investigating whether a man who allegedly broke into a hotel room in downtown Nashville had any involvement in ten other similar hotel burglary since January.

Police said the victims were inside their hotel room on the 13th floor of the Renaissance Hotel when 35-year-old Antoun Brown came in and asked where the ice machine was, and then made his way into the bathroom before leaving.

The victims told police they heard someone messing with their door lock before he came inside.

Hotel security apprehended him on the 4th floor and held him until police arrived to take him into custody.

Brown, who is a convicted burglar, was charged with aggravated burglary and possession of a burglary tool.  His bond was set at $13,000.

For more:  http://www.newschannel5.com/story/20040554/man-allegedly-broke-into-downtown-hotel-room

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by | November 8, 2012 · 7:48 am

Hospitality Industry Property Risks: Iowa Restaurant Fire Burns "Undetected For More Than An Hour"; More Than $450,000 In Damage

Fire fighters crawled through the restaurant and extinguished small fires and burning embers throughout the interior…They spent hours on scene dealing with hot spots in the above-ceiling crawl space and attic of the one-story building…the building didn’t have a sprinkler system and damage is estimated at more than $450,000.

A fire in a Des Moines restaurant likely burned for more than an hour before being detected and it took firefighters several more hours to completely extinguish all the hot spots, officials said. Crews responded to Montana Mike’s, 5030 NE 14th St., around 5:10 a.m. Tuesday to find dark gray smoke from floor to ceiling, fire officials said.

Heavy smoke and heat made seeing initially impossible and limited the use of a thermal imaging camera, officials said.

The fire started in the back of the restaurant, near office equipment, storage and laundry machines, authorities said. The cause is still under investigation.

For more:  http://blogs.desmoinesregister.com/dmr/index.php/2012/11/07/fire-burns-undetected-for-an-hour-at-local-restaraunt/article?nclick_check=1

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by | November 7, 2012 · 7:48 am

Hospitality Industry Security Risks: Florida Hotel And Management Company Ordered To Pay $1.7 Million To Victim Of "Car Jacking" In Parking Lot; "Inadequate Hotel Security And Burned Out Lights In Parking Area"

“…evidence showed “security was present, but spent more time delivering bed items, towels, and bell carts to guests rather than patrolling the exterior of the hotel and serving as a deterrent to crime. The hotel provided a ‘uniformed housekeeper,’ not security…”

In addition, lights that would have illuminated the area where the crime occurred were burned out and hadn’t been replaced for months.

An Orange County jury Friday ordered Hilton Embassy Suites, Interstate Management Company, and SecurAmerica to pay a combined $1.7 million dollars in restitution to Troy Anderson, who was shot in 2008 while parking his car at the Hilton Embassy Suites on Jamaican Court, near International Drive.

Anderson filed a lawsuit in 2009 for the shooting that occurred on the premises of the Hilton Embassy Suites on September 26, 2008, when he was shot multiple times during a car jacking. He sustained serious and life-threatening injuries as a result. (Troy Anderson v. Hilton Hotels, et al., Case No. 2009-CA-040473-O, Fla. 9th Judicial Cir.).

A former Regional Manager, Chuck Klawitter, testified the hotel would “wait until enough lights were burned out to justify getting a ‘hi-light’ to replace the burned out lights.” Klawitter and two other former SecurAmerica employees, Emmanuel Denau, a former Quality Assurance Supervisor, and Rob Wombolt, a former Operations Manager, testified they brought their security concerns to the attention of the hotel and the security company.

Witnesses testified that the area where hotel personnel instructed Mr. Anderson to park his vehicle was “very dark,” even though it was only 50 or 60 feet from the hotel entrance. Crime Scene Investigator (CSI), Gerardo Bloise, Orange County Sheriff’s Department (OCSO), photographed and documented the scene and his photographs confirmed that a critical floodlight intended to illuminate the area where Mr. Anderson parked was not working on the night he was shot. CSI Bloise confirmed in his testimony the area was “very dark.”

Assistant Hotel General Manager, Victor Vergara, claimed and testified at trial, contrary to the evidence, that all the lights were working and the parking lot lighting was “perfect.”

Jurors also learned that a similar strong-armed robbery had occurred in the parking lot of the Embassy Suites ten days prior. Deputy Lourdes Clayton of the OCSO appeared on the scene of the armed robbery ten days earlier and was on the Hilton Embassy Suites’ property for approximately an hour. The hotel and security company denied knowing she was on the property though in following protocol she would have arrived with lights and sirens on as the call was a Code 3 emergency. She also completed an “incident report,” which is a public record and which was brought out in her testimony at trial where she verified she was on the property for “approximately an hour.” The victim who was robbed at gunpoint, 72-year-old Roger Kraft from Ohio, stayed an additional two nights at the hotel, yet the hotel and security company argued he did not tell anyone about being robbed despite the fact his wallet, cash, and credit cards were stolen. Allen told the jury the assertion was “ridiculous.” Mr. Kraft unfortunately passed away a year and a half ago.

For more:  http://news.yahoo.com/orlando-hotel-ordered-pay-1-7-million-dollars-082430903.html;_ylt=A2KJjakMeZpQcGcAaXDQtDMD

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by | November 5, 2012 · 7:10 am

Hospitality Industry Employment Risks: Hotels And Restaurant Groups Begin Limiting Employee Hours To Below 30 Hours Per Week To Avoid Health-Care Law Requirements

Several restaurants, hotels and retailers have started or are preparing to limit schedules of hourly workers to below 30 hours a week. That is the threshold at which large employers in 2014 would have to offer workers a minimum level of insurance or pay a penalty starting at $2,000 for each worker.

The shift is one of the first significant steps by employers to avoid requirements under the health-care law, and whether the trend continues hinges on Tuesday’s election results. Republican presidential nominee Mitt Romney has pledged to overturn the Affordable Care Act, although he would face obstacles doing so.

Pillar Hotels & Resorts this summer began to focus more on hiring part-time workers among its 5,500 employees, after the Supreme Court upheld the health-care overhaul, said Chief Executive Chris Russell. The company has 210 franchise hotels, under the Sheraton, Fairfield Inns, Hampton Inns and Holiday Inns brands.

“The tendency is to say, ‘Let me fill this position with a 40-hour-a-week employee.’ “Mr. Russell said. “I think we have to think differently.”

Pillar offers health insurance to employees who work 32 hours a week or more, but only half take it, and Mr. Russell wants to limit his exposure to rising health-care costs. He said he planned to pursue new segments of the population, such as senior citizens, to find workers willing to accept part-time employment.

He described the shift as a “cultural change” toward hiring more part-timers and not a prohibition against hiring full-timers.

CKE Restaurants Inc., parent of the Carl’s Jr. and Hardee’s burger chains, began two months ago to hire part-time workers to replace full-time employees who left, said Andy Puzder, CEO of the Carpinteria, Calif., company. CKE, which is owned by private-equity firm Apollo Management LP,  offers limited-benefit plans to all restaurant employees, but the federal government won’t allow those policies to be sold starting in 2014 because of low caps on payouts. Mr. Puzder said he has advised Mr. Romney’s campaign on economic issues in an unpaid capacity.

For more:  http://online.wsj.com/article/SB10001424052970204707104578094941709047834.html

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by | November 4, 2012 · 6:57 am

Hospitality Industry Safety Risks: Hotels Provided Guests With Lights Sticks And Flashlights During Superstorm Sandy

Hotels ranging from a $1,000-a-night luxury lodgings to budget-priced properties are stocking light sticks —

Picture courtesy of The Ritz-Carlton, Washington D.C

and in some cases flashlights — specially for the storm.

They’re meant to give guests an extra layer of security, even though all hotels have a generator for at least limited lighting.

At the Ritz-Carlton, Washington D.C., turn-down service includes a few light sticks in case the power goes out, says general manager Elizabeth Mullins.

At the Four Seasons New York, each guest who checked in over the weekend was given a small bag with extra water, a flashlight and a note from the hotel’s general manager to make sure that they felt comfortable and knew that assistance was easy to find, says publicist Tiffani Cailor.

The high-end Omni Berkshire Hotel in Midtown Manhattan also has plenty of light sticks on hand, says Omni publicist Emily Easter. Guests will find a few in their room.

The combined Hampton Inn-Homewood Suites hotel tower in downtown Silver Spring, Md., has a box of them ready to hand out to guests in case the hotel loses electricity, which frequently happens in the Washington D.C. suburb.

For more:  http://www.usatoday.com/story/hotelcheckin/2012/10/30/hurricane-sandy-run-on-light-sticks/1667061/

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by | November 3, 2012 · 7:30 am

Hospitality Industry Employment Risks: Hawaiian Restaurant Group Sued By EEOC For "Rampant Sexual Harassment Of Female Employees"

In its lawsuit, the EEOC asserts that a class of at least nine female servers and bartenders were repeatedly bombarded with sexual propositions, explicit sexual remarks, groping, grabbing, and exposure of genital areas by male managers, and even ordered to perform sexual favors for high-level Señor Frog officials. 

Señor Frog’s, a popular chain of Mexican-themed restaurants and bars, violated federal law by allowing the rampant sexual harassment of its female employees in Honolulu by high-level officials including the company owner, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today against both Señor Frog’s and Altres, Inc.  Altres, a Hawaiian staffing company, was contracted by Señor Frog’s to provide human resources services and oversee the company’s non-management staff at the Señor Frog’s restaurant & bar in Honolulu.

The widespread sexual harassment was out of control, stemming from Señor Frog’s owner himself, who permitted other Honolulu restaurant managers and supervisors to do the same, according to the EEOC.  Women were also treated differently with respect to being passed over for promotions, obtaining less favorable shifts and earning less than their male counterparts.

The EEOC contends that at least one of the victims was compelled to quit as a result, while others were disciplined or had their hours cut in retaliation for complaining of the harassment and discrimination.  As the joint employer, the EEOC claims that Altres is also liable for the hostile work environment endured by the Señor Frog’s staff, many of whom were employed by Altres on paper, according to company records.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964.  The EEOC filed suit (EEOC v. La Rana Hawaii, LLC dba Señor Frog’s & Altres, Inc., Case No. CV-11-00799 LEK BMK) after first attempting to reach a pre-litigation settlement through its conciliation process.  The EEOC’s suit seeks all available relief, including lost wages, front pay and compensatory and punitive damages for the class of women.  Substantial remedies, including policy changes and staff training, are also being sought by the EEOC in order to prevent and appropriately address future instances of sexual harassment, discrimination and retaliation.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-2-12.cfm

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by | November 2, 2012 · 6:48 am

Hospitality Industry Legal Risks: "Data Breach Class-Action Lawsuits" Are Increasing As Judges Widen View To Include "Future Damages"; Average Settlements Of $2500 Per Plaintiff

“…Until a couple of years ago, courts would routinely dismiss lawsuits stemming from data breaches, such as the latest in South Carolina, unless the victims could show specific damages. Judges have since widened their view and are awarding class-action status to lawsuits that can show actual damages or a real possibility of future damages…”

The payout for companies on the losing side of a class-action suit can be substantial. A recent survey of data breach litigation found the average settlement award of $2,500 per plaintiff, with mean attorney fees reaching $1.2 million, according to a study by Temple University Beasley School of Law.

How federal courts define the damages people suffer from data breaches is broadening dramatically, leaving unprepared companies at greater risk of big payouts in class-action lawsuits, lawyers from a prominent law firm say.

Jeffrey Vagle, a lawyer with Pepper Hamilton, described as a “sea change” judges’ thinking. “Courts are starting to pick up on the fact that the data that can get out there can cause serious harm, maybe not immediately, but sometime in the near future,” Vagle said.

Examples include a case in which a laptop containing unencrypted personal data of Starbucks employees was stolen. While there was no evidence that the data was misused, the Ninth Circuit Court ruled in 2010 that the risk alone was enough to warrant a lawsuit, Vagle and colleague Sharon Klein said in a Client Alert published on the law firm’s website.

Data breaches have become a fairly common occurrence among companies of all sizes. Last year, 174 million data records were loss in 855 separate incidents, according to a recent report from Verizon. A 2011 Ponemon Institute survey of 583 IT and IT security professionals in the U.S. found that 90 percent of the organizations they represented had suffered at least one data breach.

To lessen potential damages, Pepper Hamilton recommends beefing up technical and physical security wherever possible. While no technology is 100% hacker proof, courts tend to compare what a company has in place to what is considered best practices for businesses of the same size and in the same industry. Taking all reasonable steps to prevent data theft can lessen damages.

Also, information shouldn’t be linked to individuals, unless absolutely necessary, and a notification policy needs to be in place, so people affected by data breaches are warned as quickly as possible.

A bill pending in Congress would set a national standard for data breach notification, replacing the variety of state laws that exist today. Introduced in June, the Data Security and Breach Notification Act would also set maximum damages and define what is considered a breach.

Irrespective of the bill’s fate, companies need to establish clear policies and procedures for handling data breaches when they occur. Klein recommends a dry run to ensure that everyone understands the steps that need to be taken.

“Many companies still believe that it only happens to the other guy,” Klein said. “And because of that, [they] have not done the blocking and tackling and preventative work upfront.”

For more:  http://m.csoonline.com/article/720128/courts-widening-view-of-data-breach-damages-lawyers-say?goback=.gde_922967_member_180838402

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by | November 1, 2012 · 6:30 am

Hospitality Industry Legal Risks: Restaurants And Bars Are Being Sued For "Illegally Playing Licensed Music" By Major Protective-Rights Organizations; "Thousands Of Dollars Per Violated Song"

“…Broadcast Music, Inc. has sued hundreds of establishments across the country, including bars and restaurants in southwest Ohio, for playing BMI-licensed songs without a proper license…a search of civil court records shows that BMI Inc. — one of three main protective-rights organizations — usually settles out of court or gets a summary judgement and, in either case, collects thousands of dollars per violated song…”

Dozens of Ohio businesses have been sued and made to pay tens of thousands of dollars for playing music without proper licensing. The lawsuits are part of a concerted effort by such organizations to enforce copyrights and could serve as a warning to other businesses illegally playing licensed music.

“The entertainment industry is in a frenzy not knowing how to protect – put fences around — their copyrights in the digital age, because there’s nothing really that can preclude a perfect digital copy,” said University of Dayton law professor Tracy Reilly, who teaches courses about real property and intellectual property.

The Pub at The Greene in Beavercreek paid more than $30,000 to BMI after a Southern Ohio United States District Court civil case for playing four BMI-licensed songs such as Van Morrison’s Brown Eyed Girl and Johnny Cash’s I Walk The Line.

“How many times do you go into a restaurant and hear them playing a radio station, for example,” said attorney David Rickert, who represented The Pub but could not speak directly about the case due to a confidentiality clause. “Technically, you need a license for that. I think it’s something people just aren’t aware of. Now they’re starting to crack down a little bit on it.”

For more:  http://www.daytondailynews.com/news/news/crime-law/area-bars-sued-for-lack-of-music-licenses/nSsqX/

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by | October 31, 2012 · 6:07 am

Hospitality Industry Safety Risks: Hotel Fined $70,000 After Employee Loses Fingers During "Routine Test Of Emergency Generator Equipment"

“…a Toronto Hilton employee saw a leak during a routine test on the hotel’s emergency generator equipment. As he leaned in to get a better look, his hand slipped into a fan. The fan’s blades cut off his fingers…”

A hotel company has been fined $70,000 after one of its workers lost some of his fingers on the job.

Justice of the Peace Kevin Madigan fined Northstar Hospitality GP Inc., which owns the Hilton hotel, for violating the Occupational Health and Safety Act. Northstar Hospitality pleaded guilty for failing to ensure the generator’s parts were guarded.

The court added a 25 per cent surcharge to the fine, which goes toward a provincial government fund for victims of crimes.

For more:  http://www.thestar.com/news/gta/article/1279358–hotel-owner-fined-70-000-after-worker-loses-fingers

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