Category Archives: Liability
Hospitality Industry Legal Risks: Pennsylvania Restaurant Sued By Worker For “Religious Discrimination”; Claims New Manager Reduced Hours, Created Hostile Work Environment
“…At the start of her employment, (the plaintiff) informed the defendant that she could not work on Thursdays and Sundays due to her religious 
beliefs…In June 2011, after a woman identified as Aretha Foster became the plaintiff’s store manager, Matthews had her hours reduced to 15 a week from 35…The complaint alleges that Foster also subjected the plaintiff to an increasingly hostile work environment, that the supervisor would deny Matthews her breaks, and that the woman would verbally abuse the plaintiff in front of other staff members…”
A Jehovah’s Witness from southeastern Pennsylvania is suing a Louisiana-based restaurant over allegations that the company discriminated against her because of her religion. Jonna Matthews, who currently resides in Pottstown, Montgomery County, filed suit at the U.S. District Court in Philadelphia on Nov. 26 against America’s Pizza Co. over the allegedly discriminatory treatment she received at the hands of the defendant while she was employed as a customer service representative beginning in early February 2011.
The plaintiff, however, maintains that she never asked for the reduction in hours and was still available to work Mondays, Tuesdays, Wednesdays, Fridays and Saturdays. The defendant stands accused of violating Title VII of the Civil Rights Act, which bars discrimination on the basis of religion.
“Plaintiff suffered adverse job actions, including, but not limited to, disciplines, denials of various opportunities, and termination,†the suit states.
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management
Hospitality Industry Legal Risks: “How To Serve Alcohol At A Company Party Without Getting Sued” By Tom Posey
How to Serve Alcohol at a Company Party Without Getting Sued
By Tom Posey, Partner, Faegre Baker Daniels
With the holidays right around the corner, many businesses will host festive company outings and events for their employees, including parties at the office—and often these celebrations include alcohol.
Employers need to understand the legal parameters of having alcohol in the workplace in order to establish a safe, responsible and enjoyable work environment for their employees. A few common questions from employers at this time of year are:
http://www.faegrebd.com/tom-posey
Some states have laws that govern “social host liability.” Through these laws, bartenders or social hosts can be held liable for events that result from over-serving someone (e.g. accidents, injuries, etc.).  These laws would make the organization responsible for monitoring consumption and cutting off drinking by anyone who becomes intoxicated, so be aware of the laws in your jurisdiction.
If some of our employees are under the legal drinking age, can we still serve alcohol?
Employers must ensure that no one underage has access to alcohol. If alcohol is served to a minor, the employer can be subject to the same stiff fines and penalties that a store or bar that serves a minor would face. Â Accordingly, if underage employees will be attending the party, employers must be vigilant in making sure that they are not served or allowed access to alcoholic beverages.
If an employee has too much to drink and has an accident, it is still covered by our insurance, right?
Employers who provide alcohol to their employees may unwittingly negate coverage under their general liability insurance policies and be on the hook for costs associated with alcohol-related incidents or injuries, so be aware of the limitations and exceptions applicable to your organization’s employee-related policies.
Any other legal risks the organization might face if alcohol will be served at holiday functions?
There is an increased risk of sexual harassment-related complaints that result from company events where alcohol is present (e.g. the stereotypical office holiday party 
that is always satirized in movies and TV shows). Remember that even though the function might be held outside normal working hours, employees are still afforded protection from harassment or other inappropriate conduct that might be directed at them by their colleagues.
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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Risk Management, Training
Hospitality Industry Legal Risks: Louisiana Restaurant Sued By Disabled Customer Injured By Heavy Door; “No Assisted Open Device, Proper Signage”
“..(the plaintiff)Â went to open the heavy door leading to the restroom (and) when it swung back, (it) scraped her left leg, knocked her walker out 
from under her and caused her to fall to the ground. The plaintiff asserts she was injured in the fall…The defendant is accused of not providing an assisted open device on the door, failing to provide signage notifying her the door was heavy and failing to act as a reasonable person…”
A disabled customer who alleges she was injured in a fall while trying to open a door at a local restaurant is suing. Rosalie Miller filed suit against Johnny Trauth’s Seafood Bistro LLC in the 24th Judicial District Court on Nov. 4.
Miller claims she was a customer at Johnny Trauth’s Seafood Bistro located at 2121 25th St. in Kenner. An unspecified amount in damages is sought for severe injuries, pain and suffering and permanent disability.
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Filed under Guest Issues, Liability, Maintenance, Management And Ownership, Risk Management
Hospitality Industry Employment Risks: Hawaii Restaurant Settles EEOC “Sexual Harassment And Retaliation” Lawsuit For $350,000; Young Female Workers Assigned Less Favorable Shifts
“…The federal agency filed suit in 2011, later amending its complaint to charge that at least 10 female staffers were sexually harassed by several male employees, 
including managers…The agency further alleged that some employees were subjected to retaliation after complaining about the alleged harassment. The EEOC also alleged that the women were also treated less favorably than men in the workplace: they were passed over for promotions, assigned less favorable shifts and earned less than their male counterparts…”
La Rana Hawaii, LLC, doing business as Señor Frog’s, a popular Mexican-themed restaurant and bar in Honolulu, will pay $350,000 to settle a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) on behalf of 13 female employees who were allegedly sexually harassed or retaliated against between 2007 and 2012, the federal agency announced today.
The EEOC alleged that the managers subjected employees to sexual comments, language and advances, and unwelcome physical contact. The alleged behavior violated 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 resolve the matter through its conciliation process.
As part of the settlement announced today, the parties entered into a three-year consent decree requiring La Rana Hawaii, LLC to pay $350,000 to 13 female claimants. The company closed its Honolulu establishment in August 2012. Notwithstanding, if La Rana chooses to open another restaurant or chooses to reopen the Señor Frog’s in Hawaii, the consent decree requires substantial injunctive relief including the creation and distribution of an anti-harassment policy along with annual training for all restaurant employees to prevent future instances of sexual harassment, discrimination and retaliation. The EEOC will monitor compliance with the agreement.
Altres Inc., a Hawaii staffing company, was contracted by La Rana Hawaii to provide human resources services and oversee the company’s non-management staff during the time in question. The EEOC also named Altres in its lawsuit; Altres previously settled with the EEOC for $150,000 and injunctive relief, including EEO training for its employees.
“Our young workers are all too often the targets of the most insidious forms of sexual harassment, which can spread like wildfire at work,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Hawaii in its jurisdiction. “Employers who fail to fulfill their moral and legal obligation to prevent and immediately stop the sexual abuse of its young workers will answer to the EEOC.”
Timothy Riera, local director for the EEOC’s Honolulu Local Office, added, “The EEOC takes workplace harassment against young workers very seriously. Through our Youth@Work outreach, we aim to educate America’s next generation of workers on their right to work in an environment free of harassment and discrimination and their right to report such abuses without retaliation.”
For more:Â http://www.eeoc.gov/eeoc/newsroom/release/11-21-13.cfm
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management
Hospitality Law Insider: “Duty Of Care” That Businesses Owe To Mobile Employees From Stephen Barth Of HospitalityLawyer.com (Video)
In the second episode of Hospitality Law Insider, Stephen Barth covers some essential items to consider when adapting your travel risk plan to meet duty of care obligations. Learn more about how to deal with medical issues, evacuation considerations, and civil unrest.
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management, Technology
Hospitality Industry Legal Risks: California Hotel Employee Files “Racial Discrimination And Harassment” Lawsuit; Painter “Unjustly Fired”, Exposed To Unsafe Working Conditions
“…The suit claims (the plaintiff) was unjustly fired from his position after he was instructed to complete tasks typically subcontracted to outside vendors. The court filing also claims two of the hotel’s buildings had serious water damage and mold issues, but management failed to properly train employees or equip them with the right safety equipment, exposing Tobin to unsafe working conditions…”
Ronald Tobin, a former employee at Fess Parker DoubleTree Hilton, is suing the joint resort company and three of its supervisors for alleged discrimination and unfair business practices while he worked there as a painter for nearly three years.
Tobin, who’s African-American, claims he was subjected to discrimination and harassment at the DoubleTree because of his race, and that the human resources department neglected to investigate or address his complaints. During an event at the hotel, the lawsuit reads, one of Tobin’s supervisors talked about the chicken and watermelon being served, and used the phrases “you people†and “your food.†“[The supervisor] continued to state that he does not know why African-Americans refer to themselves that way when white people do not say ‘Caucasian-Americans,’†the filing reads. The lawsuit also states another employee regularly used the “n-word†without being reprimanded.
For more:Â http://independent.com/news/2013/nov/21/discrimination-doubletree/
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership
Hospitality Industry Legal Risks: California Hotels Settle Federal “Wage Violation” Investigation For $60,000; Management Used Separate Payrolls For 53 Workers To Avoid Overtime Pay
Investigators determined that Miracle Springs Resort and Spa, and the nearby Desert Hot Springs Spa and Hotel, were under the same 
management, but they recorded employee hours on separate payrolls. When the affected employees’ hours were combined, the hours often totaled more than 40 per week, entitling the employees to overtime compensation for hours worked beyond 40 per week. Additionally, the employer would automatically deduct a 30-minute lunch break from some employees’ work hours, even when employees did not take the break.
The hotel Miracle Springs Resort and Spa of Desert Hot Springs has agreed to pay $59,790 in back wages to 53 employees, including maintenance and housekeeping employees, following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the overtime provision of the Fair Labor Standards Act.
“Hotel owners and operators must ensure that their employees are properly compensated for all work hours,†said Kenneth Morrison, director of the Wage and Hour Division’s San Diego District Office. “We are pleased that these workers will be paid their rightful overtime wages and that the employer has agreed to make the appropriate changes to prevent future FLSA violations.â€
The employer, along with paying the full back wages to the affected employees, will maintain future FLSA compliance by agreeing to combine the hours for employees who work at both hotel locations. The employer will deduct lunch breaks only when employees take the 30-minute break.
The hotel and motel industry employs many low-wage workers who, due to a lack of knowledge of the law or an unwillingness to exercise their rights, are vulnerable to disparate treatment and labor violations. The Wage and Hour Division is concerned about the noncompliance in this industry and is concentrating its resources on identifying and remedying violations, informing workers of their rights and providing compliance assistance to employers.
For more: http://www.dol.gov/whd/media/press/whdpressVB3.asp?pressdoc=Western/20131118.xml
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Hospitality Industry Employment Risks: New Mexico Hotel Settles EEOC “Religious Discrimination” Lawsuit For $100,000; Housekeeper Fired After Refusing To Remove Head Covering
 “…The EEOC lawsuit charged the employer with failing to allow Abdullah to work unless she removed her religious head covering, and fired her when she declined to do so…the consent decree includes: an injunction prohibiting future discriminatory practices; institution of policies and procedures to address religious discrimination and retaliation; training for employees of MCM, and managers and human resource officials of both defendants on religious discrimination; and posting a notice advising employees of their rights under Title VII…”
704 HTL Operating LLC and Investment Corporation of America, doing business as MCM Elegante Hotel in Albuquerque, has agreed to settle a religious discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission for $100,000 and other relief.
The EEOC, in a news release, said the settlement resolves an EEOC lawsuit filed in September for alleged religious discrimination against Safia Abdullah, who was hired for a housekeeping position at the hotel. The hotel owners denied the allegations in the EEOC’s lawsuit and said in court papers they settled the case to avoid the risks and expenses of continued litigation.
For more: http://www.eeoc.gov/eeoc/newsroom/release/11-18-13.cfm
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management, Training
Hospitality Industry Legal Risks: Florida Restaurant Faces Federal “Sexual Harassment Lawsuit”; Manager Created “Hostile Work Environment”, Retaliated Against Two Female Workers
“…(one plaintiff)Â worked at the restaurant from 1999 to February of 2012 and she complained to the restaurant’s owner about the manager’s 
use of “racial slurs in the workplace”…The manager also directed racist “pet names” of his own creation toward her…The lawsuit charges the manager used derogatory terms and slurs as part of a “vicious regime of racial and sexual harassment” at the restaurant on Canal Street, and it says “no effective action was taken to stop it.”
Two former employees of a McDonald’s restaurant in Mulberry have filed a federal lawsuit, accusing a manager of creating a hostile work environment. The women allege they were retaliated against after making complaints known to the restaurant’s owner. Cowles’ hours were drastically reduced, and she was left with “no choice” but to quit her job when the manager’s behavior continued, the lawsuit states.
Potts went on maternity leave, and when she attempted to return to work, she was informed “there was no job for her, despite the nearly perpetual turnover of employees at the restaurant,” according to the lawsuit.
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