Category Archives: Liability

Hospitality Industry Fire Safety Risks: South Carolina Hotels Implement "Preventative Maintenance" Program Including Housekeeping Checking Smoke Detectors After Guests Depart

“…the resort says it follows a detailed preventative maintenance program with a 300 item checklist, ensuring that everything from electric outlets to appliances inside guest rooms are safe to use…upon the departure of each guest, housekeeping is instructed to check the smoke detector for safety to make sure it’s still in working condition…”

Studies show that working smoke detectors cut your chance of dying in a fire by half.

When it comes to hotel fire safety, Springmaid Beach Resort on Ocean Blvd learned just how important smoke detectors are, after a small electrical fire broke out in the boiler room this past summer.

“We had to clear all those rooms out of people that were right around it and move them to a different property,” says Donald Hovis, the marketing manager for the establishment.

It’s a safety measure more hotels are starting to do. In Georgetown, the fire department has teamed up with hotels requiring cleaning staff to check smoke detectors after each guest checks out of the room. The staff also leaves a card stating the test has been done for the next occupant to see.

While Myrtle Beach doesn’t require it, the fire department says it’s been working with hotels for years on getting housekeeping to check the devices, and the fire marshal says he’s confident Grand Strand hotels are ensuring guests’ safety.

Several hotels we checked with along Ocean Boulevard say they check them regularly. Hovis says following this summer’s small fire, they learned another valuable lesson.

For more:  http://www.wmbfnews.com/story/19806893/grand-strand-hotels-reveal-fire-safety-plan

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Filed under Fire, Guest Issues, Insurance, Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training

Hospitality Industry Legal Risks: Texas Restaurant Settles "Disability Discrimination" Lawsuit For $41,500 And Agrees To Train Managers On Use Of "Hearing-Impaired Communication Systems"

“…the EEOC alleged that the company violated the Americans with Disabilities Act of 1990 by denying job applicant Michael Harrison employment at its Wendy’s franchise in Killeen, Texas, after learning of his hearing impairment…In addition to paying $41,500 to Mr. Harrison, Wendy’s agreed to provide all managers and supervisory employees training on the ADA and specific training on the use of hearing-impaired communication systems…”

A franchisee of The Wendy’s Co. fast-food restaurant chain has agreed to settle a disability discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission, paying $41,500 to resolve the case and implement employee training.

After successfully interviewing with the Wendy’s shift manager for a cooker position, Mr. Harrison was interviewed by the general manager through a telephonic system for the hearing-impaired. During the course of the interview, the EEOC alleged that the general manager told Mr. Harrison that “there is really no place for someone we cannot communicate with,” the EEOC said in the statement.

After failing to reach a prelitigation settlement, the EEOC filed the lawsuit in the U.S. District Court for the Western District of Texas in Waco.

For more:  http://www.businessinsurance.com/article/20121011/NEWS07/121019971?tags=|70|75|305|303

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Hospitality Industry Legal Risks: Nevada Hotel Settles Employment Discrimination Lawsuit With Justice Department For $49,000; Must Implement New Employment Eligibility Verification Policies

“Employers may not treat authorized workers differently during the employment eligibility verification and reverification process based on their citizenship status or national origin,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

Under the settlement agreement, Tuscany will pay $49,000 in civil penalties to the United States and full back pay to a victim.  In addition to corrective action already taken, Tuscany also agrees to implement new employment eligibility verification policies and procedures that treat all employees equally regardless of citizenship status, conduct training of its human resources staff on their responsibilities to avoid discrimination in the employment eligibility verification process, and be subject to reporting and monitoring requirements.

The Justice Department today reached an agreement with Tuscany Hotel and Casino LLC in Las Vegas resolving a lawsuit alleging that the company discriminated in the employment eligibility verification and re-verification process.

The Immigration and Nationality Act (INA) requires employers to treat all authorized workers equally during the hiring, firing and employment eligibility verification process, regardless of their national origin or citizenship status.

The department’s case, filed on May 11, 2012, alleged that Tuscany treated non-citizens differently from U.S. citizens during the employment eligibility verification and reverification process.   The complaint alleged the casino required non-citizen employees to provide more or different documents or information than it required from citizen employees during the initial employment eligibility verification process.  According to the complaint, the company then used the documents or information it gathered to impose improper document requests on non-citizens during the reverification process as a condition of continued employment.
The complaint further alleged that the casino subjected non-citizen employees’ documents to a heightened review process by senior human resources representatives that was not applied to documents presented by U.S. citizens.

For more:  http://www.opposingviews.com/i/society/drug-law/justice-department-settles-lawsuit-against-las-vegas-casino-unfair-documentary

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Filed under Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Information Security Risks: Hotel's Guest's Credit Cards Are Targets For "Identity Thiefs" From "Mulitple Charges" During Stay

“…hotels have lots of employees — and many of them have access to the credit card and other personal information of guests. No matter how well trained and supervised, more personnel correlates to greater risk. The fact that low-level employees typically have access to key guest information, and that there is, historically, a high turnover in hotel employees, exacerbates the problem…”

Hotels are obvious targets for identity and financial theft for many reasons. Hotels transact business through credit cards, and those credit cards are kept on file and can be accessed multiple times during a guest’s stay. The possibility that a credit card charge will be recorded occurs with each night’s room charge, room service, bar or restaurant bill, spa charge, and so on. Every charge is another opportunity for an identity thief to access the information using sophisticated computer hacks and other malicious software, generally without the hotel’s knowledge.

The need to respond to guest demands is another source of insecurity. The Identity Theft Resource Center noted, “The ability to connect to the Internet is an integral part of many individuals daily life. This has led to the increased demand for public WiFi.” As a result, hotels find themselves compelled to offer wireless internet, and that service is almost always unsecured. But an unsecured wireless network is “just as dangerous as leaving files of your most important personal documents on a street curb for all to see. Hackers can easily get into an unsecured wireless network and get financial information, business records or sensitive e-mails.” (PC World, “Got Wireless Security”, http://www.pcworld.com/article/125040/got_wireless_security.html). At the same time, hotels have little say in the matter. Guests demand wireless internet service.

Some security researchers have described a wave of attacks against the hospitality industry. In 2010, the cybersecurity consultant Trustwave found that in 38% of its investigations, hotels and resorts were the victims of successful cyber intrusions, despite those firms only representing 3% of its customers.  Hotels represent a disproportionate number of security breaches.

For more:  http://hotellaw.jmbm.com/2012/10/liability_for_guest_information_.html

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Filed under Crime, Guest Issues, Liability, Management And Ownership, Risk Management, Technology, Theft

Hospitality Industry Legal Risks: North Carolina Restaurant Ordered To Pay $1.7 Million To Parents Of "Unborn Child" Killed By Man In Alcohol-Related Head-On Collision

 “…attorneys say Huffman had been drinking at Eddie’s Place, and that his blood alcohol content was 0.23, nearly three times the legal limit in North Carolina…”

A jury has awarded a Charlotte couple $1.7 million in a lawsuit against a local restaurant in connection with a head-on collision that killed the couple’s unborn son.

Attorneys for Matt and Meredith Eastridge say 25-year-old David Canter Huffman was speeding in his Volvo on Oct. 29, 2010, when the car crossed the center line and hit Matt Eastridge’s Toyota RAV4.

Police say Huffman died in the crash, as did the Eastridges’ unborn son. Meredith Eastridge was a front-seat passenger and was six months pregnant.

For more:  http://www.therepublic.com/view/story/106eccfc426d4238a06f31c1cffbbf72/NC–Collision-Lawsuit

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Filed under Guest Issues, Injuries, Insurance, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Workers File Class-Action Lawsuit Against Los Angeles Hotel For "Millions Of Dollars In Unpaid Wages"

“…(the suit) alleges that management has routinely required them to work through required lunch breaks and rest periods and after clocking out…Housekeepers also claim hotel management refused to reimburse them after requiring them to buy cleaning supplies such as sponges and gloves to clean guest bathrooms…”

The suit also alleges that a majority of Holiday Inn LAX employees are earning less than $11.97 per hour, the minimum living wage for hotel workers in the LAX corridor.

Workers at the Holiday Inn Los Angeles International Airport filed a class action lawsuit on Thursday demanding millions of dollars in alleged unpaid wages. A non-union group of bartenders, housekeepers, cooks and other workers filed the suit with support from L.A. hospitality labor union Unite Here Local 11.

Adrian Valencia, general manager at Holiday Inn LAX, said the hotel was surprised by the lawsuit.

“We had never been contacted by the union until Monday, when they stormed in yelling and screaming into the administration offices,” he said. “We pay the annual living wage increase as of July 1 each year and we have some of the best scores for a Holiday in as far as cleaning. We use proper procedures here at the hotel.”

Randy Renick, the attorney representing the workers, said the goal of the suit is to address long-standing labor grievances.

For more: http://www.labusinessjournal.com/news/2012/oct/04/lax-hotel-employees-file-suit-unpaid-wages/

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Hospitality Industry Security Risks: Hotel "Electronic Room Locks" Opened With "Hacking Device" Tool Disguised As "Dry Erase Marker" (Video)

[youtube=http://www.youtube.com/watch?v=QyN-8CeNSZg]

A trio of hackers have built a tool that appears to be an innocent dry erase marker, but when inserted into the port on the bottom of a common form of hotel room keycard lock triggers the lock’s open mechanism in a fraction of a second.

The security researchers who spend their days breaking into clients’ systems to find and fix security vulnerabilities often call themselves “penetration testers,” or “pentesters.” But one group of hotel lock hackers just gave the term “pentest” a very different meaning.

The inconspicuous lock hacking device is an adaption of one demonstrated at the Black Hat security conference in July by Cody Brocious, a hacker and software developer for Mozilla, who discovered and exploited a vulnerability in Onity locks, a cheap and popular hotel room lock that the company says are used on at least four million hotel rooms worldwide. Through the port on the bottom of the lock intended for a device that hotels can use to set master keys, Brocious found he was able to read the lock’s memory, including a decryption key stored on the locks that gave him access to their opening mechanism.

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Filed under Crime, Guest Issues, Liability, Management And Ownership, Privacy, Risk Management, Technology, Theft

Hospitality Industry Legal Risks: Small California Restaurants Face "Expensive And Time-Consuming" ADA Lawsuits, Forcing Some To Close Down

“…Texas West BBQ in Sacramento faced a lawsuit in 2007…and made the needed changes…but then, in March of this year, a second lawsuit is forcing Texas West BBQ to make more changes to be ADA-compliant…including better striping in the parking lot, wider doors, and a larger bathroom…it will cost nearly $35,000…”

An American with Disabilities Act lawsuit was the last straw for a struggling, longtime burger business. Ford’s Real Hamburgers on Sutterville Road shut down just weeks after the governor signed a new state law that would crackdown on ADA lawsuit abuse.

Several attorneys have filed an exceptional number of lawsuits based on ADA violations. Attorney Scott Johnson has filed nearly 2,200 of them in federal court. More often than not, businesses settle after paying thousands of dollars.

“It scares you because it’s so expensive and time-consuming,” said Louise Haynes.

Gov. Brown just signed a bill co-authored by Senate President pro Tempore Darrell Steinberg, D-Sacramento, that would prevent frivolous lawsuits. It would ban demand letters. It gives the defendant time to fix the ADA violations. It’ll also prevent lawyers from stacking multiple claims to increase pay-outs.

” It prevents what I like to call ‘legalized extortion,'” said Travis Hausauer who is co-chair of Californians Against Lawsuit Abuse. His Squeeze Inn Burger restaurant was sued twice by two different attorneys.

” I got sued in court the first time, then I got sued in federal court the second time around,” said Haushauer.

Many people believe the state law is a positive step. But some say it won’t stop ADA lawsuits because attorneys will continue to file lawsuits in federal court.

For more:  http://landpark.news10.net/news/news/105381-ada-lawsuit-leads-long-time-sac-burger-business-close

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Hospitality Industry Property Risks: Wyoming Motel Fire Causes $14 Million In Damage; Man Indicted For Role In Starting Fire

“…The fire at the historic motel, located at 1700 W. Lincolnway, destroyed guest rooms, a restaurant, the lobby and the bar. It caused about $14 million in property damage. Lodging buildings didn’t burn. It was determined that the fire was set intentionally…”

A New Mexico man has been indicted for his alleged involvement with the Sept. 15, 2010, fire at the Hitching Post Inn here. Robert Rodriguez, 44, was indicted by a Wyoming federal grand jury Friday, according to a release from the Wyoming district of the U.S. Attorney’s Office.

The two-count indictment says Rodriguez maliciously damaged and destroyed the Hitching Post by means of  fire. It also says he used fire to aid and abet mail and wire fraud. It is  unclear from the release whether charges have been filed. Rodriguez is being  detained without bail.

The investigation into the fire is ongoing, the release says. The Bureau of Alcohol, Tobacco, Firearms and Explosives is leading
the investigation with help from the Cheyenne Police Department and Cheyenne Fire and Rescue.

City officials closed the motel in September 2009, citing safety concerns and code violations.

CJM Hospitality bought the property from New Jersey-based Matiff Cheyenne Hospitality in the wake of Matiff filing for Chapter 11
bankruptcy protection.

The 10.82-acre property was appraised for more than $6 million. At the time of the fire, CJM was putting in $500,000
worth of renovations. Representatives said they planned to reopen the west side of the structure and two unattached buildings.

For more: http://www.wyomingnews.com/articles/2012/09/29/news/01top_09-29-12.txt

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Hospitality Industry Legal Risks: Texas Restaurant Chain Sued By EEOC For Firing "Pregnant Employees Under A Discriminatory Written Policy"

“…According to the EEOC’s lawsuit, Maryann Castillo and other female workers were laid off after the third month of their pregnancies under a written policy, set out in Bayou City Wings’ employee handbook…”

JC Wings Enterprises, LLC, doing business as Bayou City Wings, a Baytown-based restaurant chain, violated federal law when its managers laid off pregnant employees under a discriminatory policy, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today.

  Bayou City Wings owns and operates restaurants in Baytown, Houston and surrounding areas.  The company’s district manager laid off Castillo pursuant to the policy even though she had provided a doctor’s note that indicated she could work up to the 36th week of her pregnancy and that her doctor had not placed any restrictions on her ability to work.

During the EEOC’s investigation of a discrimination charge brought by Castillo, Bayou City Wings named eight female employees who were laid off from work because of their pregnancies.  According to a Bayou City Wings general store manager, for a manager to keep a pregnant employee at work any longer would “be irresponsible in respect to her child’s safety” and would jeopardize his position with the company “for not following procedures.”

Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, prohibits employers from discriminating against employees on the basis of sex or pregnancy.  The EEOC filed suit (Civil Action No. 4:12-cv-02885) in U.S. District Court for the Southern District of Texas, Houston Division, after first attempting to reach a pre-litigation settlement through its conciliation process.   The EEOC seeks an injunction, back pay with pre-judgment interest, reinstatement or front pay, compensatory damages and punitive damages, in amounts to be determined at trial.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/9-12-26d.cfm

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