Category Archives: Liability

Hospitality Industry Employment Risks: California Restaurants Fined More Than $1.9 Million For “Wage Theft Violations”; 47 Workers Paid Cash, No Minimum Wage Or Overtime

“…Some of the workers were forced to sign timecards containing falsified information stating they had only worked between five and six Hospitality Industry Wage Violation Lawsuitshours each day, the agency said. Others were paid in cash with no information on the total hours worked, rate of pay or deductions provided…The 47 workers are due $1,086,436 in unpaid minimum wages, $376,640 in unpaid overtime and $153,582 for no meal period premiums, the agency said. In addition, a total of $189,250 in civil penalties were assessed for wage violations…”

State labor regulators fined two Ukiah restaurants more than $1.9 million Thursday for alleged wage theft violations over three years. The violations at Walter Cafe and Ruen Tong Thai Cuisine involved 47 workers and included overlong workdays, failure to pay overtime and the forced falsification of timecards.

The fine “is one of the larger audits for the restaurant industry,” said Hennessy. The investigation is ongoing, she added, leaving open the possibility of additional penalties. Ritdet and Walter are being held both individually and jointly liable for the alleged Labor Code violations.

Employees at their two restaurants regularly worked at least 11.5 hours a day, six or seven days a week, with no meal breaks, according to a Labor Standards Enforcement division news release. The restaurants did not pay minimum wage or overtime, in violation of the law, according to the agency.

The investigation started in June 2012 after an anonymous complaint was filed. It was conducted by state and federal labor regulators and examined employment practices at the restaurants from June 19, 2010, through June 15, 2013.

For more: http://www.pressdemocrat.com/article/20131114/articles/131119756

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Filed under Employment Practices Liability, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Insurance Risks: Workers’ Compensation Fraud Accounts For 25% Of All Insurance Fraud, Costing $5 Billion Annually

Workers' Compensation Fraud

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by | November 14, 2013 · 9:05 am

Hospitality Industry Legal Risks: New York Restaurant Settles Federal “ADA Disabilities Compliance” Lawsuit For $10,000 Civil Penalty, Fix Structural Issues Including Takeout Counter, Pathways And Accessible Toilets

“…the U.S. Attorney for the Southern District of New York, announced  the filing and settlement of the lawsuit, which was part of the Hospitality Industry ADA LawsuitsManhattan Restaurants ADA Compliance Initiative. The Initiative uses the 2011 Zagat  Guide’s “most popular” list to probe busy hubs for ADA compliance…The Upper West Side restaurant’s shortcomings include doors that  are too tough to open, narrow pathways between tables, and too high a takeout  counter. The Theatre District got slammed for its high coat check counter and  lack of a raised-character sign near the restroom door. Neither restaurant had a  fully accessible toilet…”

The entrances (of Carmine’s Italian Restaurant) top a long list of tweaks that will be made by the chain’s two  Manhattan locations as the result of a settlement in a lawsuit filed today by  the U.S. Attorney’s office. The suit cited several violations of the Americans  With Disabilities Act, which also comes with a $10,000 civil penalty.

According to the suit filed by Preet Bharara, U.S. Attorney for the Southern  District of New York, each Carmine’s has to shape up to comply with ADA  regulations. Most small changes must be made within 90 days. Larger structural issues –  like the Upper West Side location’s tight bathroom hallway – aren’t due until  November 1, 2014.

Read more at http://observer.com/2013/11/prego-carmines-settles-suit-over-accessibility-issues/#ixzz2kXxcgZK1

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Filed under Guest Issues, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Safety Solutions: Hotel And Restaurant Kitchen “Safe Work Practices” To Prevent “Slips, Trips And Falls” Of Young Employees

OSHA SafetyOSHA Restaurant Safety

https://www.osha.gov/SLTC/youth/restaurant/hazards_slips.html

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Filed under Health, Injuries, Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training

Hospitality Industry Liability Solutions: Hotel “Room Safe Online Tracking” Can Mitigate Guest Personal Property Loss

“…Tracking (room safe contents) is important because it can be a potential liability issue for hotels…“A guest might say, ‘But I left $1,000 in Hotel Room Safe Liabilitythere, and you only found $20!’”… Hotels can mitigate this issue by asking guests if they have left anything in the room safe before they leave the hotel…At the same time, it can be possible for safes to offer online tracking more easily by plugging into an online tracking system a hotel already has, such as for an emergency management system…”

Online tracking can ease the checkout process by making it less likely that a guest will leave a personal item in the room safe, said Bill Oliver, president for North America, VingCard Elsafe. Front-desk staff can prevent items from being left in the safe by merely querying departing guests at check-out.

Online tracking for hotel safes may not be a fit for smaller properties due to the cost involved in setting up the system, said John Foley, VP of sales at Safemark.

Larger properties can make better use of online tracking because of the sheer number of guests using safes each day, Foley said.

“At a property the size of MGM Grand in Las Vegas, you might have 60 guest openings or 100 service calls a day, so big box properties just have different ways of tracking different products inside the guestroom,” he said.

For more:  http://www.hotelmanagement.net/technology/tracking-safes-online-25340

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

Hospitality Industry Employee Risks: Michigan Restaurant Waitress Convicted Of “Credit Card Forgery” After Padding Tips On Transactions; Prior Record For Theft And Larceny

“…(the defendant) was hired as a waitress at Buffalo Wild Wings…on June 19, 2013, she stole from customers by padding the tip amount on Restaurant Employee Theftelectronic receipts…For example, when someone used a credit card to pay for their bill, (she) would change the tip amount when she entered the transaction into the computer…The restaurant received a complaint from a customer, which led to an internal investigation by the business. That initial complaint led to others…”

Kortney Donesia Lewis, a 25-year-old Fruitport Township woman, garnered three prison terms this week for padding her waitress tips at a Buffalo Wild Wings restaurant — crimes committed while she was a fugitive from sentencing for a theft at a Red Roof Inn job.

Lewis also has a previous conviction record of stealing credit cards and larceny in a building in 2009.

Muskegon County 14th Circuit Judge Timothy G. Hicks on Monday, Nov. 4, sentenced Lewis to prison for three terms of between 15 months and 15 years for credit-card forgery as a fourth-time habitual offender. She pleaded guilty as charged Sept. 24.

For more: http://www.mlive.com/news/muskegon/index.ssf/2013/11/ex-waitress_gets_prison_for_st.html

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Filed under Crime, Guest Issues, Labor Issues, Liability, Risk Management, Theft

Hospitality Industry Fire Risk Management: “Security Alert! Check The Security Of Your Hotel’s Knox Boxes Frequently” By Todd Seiders, CLSD, Petra Risk Solutions

Security Alert! Check The Security Of Your Hotel’s Knox Boxes Frequently

by Todd Seiders, CLSD

Check your Knox Boxes! A Knox Box, known officially as the KNOX-BOX Rapid Entry System, is a small, wall-mounted safe-like box that holds building keys for firefighters and EMTs to retrieve in emergencies. In many jurisdictions, the local Fire Department requires that a Knox Box be located outside of your hotel (check with your local Fire Department for requirements; some jurisdictions may not require hotels to have one), for their use only, in the event of an emergency. The Knox Box has a complete set of the hotel’s master keys locked inside this box.

Knox Boxes simplify key control for local fire departments. Local fire companies can hold master keys to all such boxes in their response area, so that they can quickly enter a building without having to force entry or find individual keys held in deposit at the fire station. Sometimes Knox Boxes are linked via radio to the dispatch station, where the dispatcher can release the keys with telecommunication tone signaling over analog phone lines.

Knox Boxes have advantages and disadvantages for both business owners and emergency responders. The main advantage for their use is that they cut fire losses for building owners since firefighters can more quickly enter buildings without breaking doors or windows. The disadvantage of the system is that it provides a single point of failure for security. If the key to a district’s Knox Boxes is stolen or copied, a thief can enter any building that has a Knox Box. Likewise, if the locking mechanism or structural integrity of the box is compromised, a thief can gain access to the keys and hence access to the entire building. For this reason some building owners wire Knox Boxes into their burglar alarm systems so that opening the box trips the alarm, thus negating its use in facilitating clandestine entry.

Knox Boxes are an actual miniature safe designed to withstand tampering and are built in a variety of sizes ranging from a box designed for two keys to one designed to hold hazardous material information and multiple keys. Prices start at approximately $250.00. Most Knox Boxes are mounted onto a wood or steel mounting with the screws or bolts covered.

Todd Seiders Petra Risk SolutionsYet, this does not mean that Knox Boxes are indestructible or cannot be removed from their mounting with force. We have recently seen many of these Knox Boxes forcefully removed from their wall mountings and stolen from the property. In several cases the thieves then returned to the hotel with the master keys and stole items.

In one theft at a hotel the thieves specifically used the master keys to access the storage room for the hotel night audit packets and guest files. The thieves stole hundreds of night audit packets containing the names, addresses and credit card numbers of previous guests. Obviously, hotels can be held liable for breach of guests’ personal information or loss of their credit card data.

So, what should hoteliers do? Secure your night audit packets/files in a secure room that has a hard metal key, rather than a magnetic key card lock. There should only be one or two hotel employees that have access to the night audit storage room, and storage room keys. Secure these files separately, and control all access to them. DO NOT include a key to this storage room in your Knox Box, or on your “master key ring”, or even leave this key unattended in a key box. The night audit file storage room key should be kept separate from all other keys.

As for the hotel’s Knox Box, local ordinances may require that your property have a Knox Box in the event of an emergency. If so, follow these suggestions:

  • Check that your Knox Box is solidly secured to its location, using numerous heavy duty screws or bolts to make it extremely hard to remove.
  • Relocate your Knox Box to a well lit area, and in view of security cameras, if your property has them.
  • Add a visual inspection of the Knox Box to your property inspection form and security tours so it will be inspected on a regular basis. This will let you know in a timely manner if someone has tried to remove it, or has in fact actually removed or damaged. Immediately re-key the entire hotel if the Knox Box is stolen or the keys inside come up missing. 

Pictured above: Here’s what some of the various Knox Boxes look like.

http://www.petrarisksolutions.com/

http://www.petrarisksolutions.com/

(Todd Seiders, CLSD, is director of risk management for Petra Risk Solutions, which provides a full-range of risk management and insurance services for hospitality owners and operators. Their website is: www.petrarisksolutions.com. Todd can be reached at 800-466-8951 or via e-mail at: todds@petrarisksolutions.com.)  

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Filed under Crime, Fire, Insurance, Liability, Maintenance, Management And Ownership, Risk Management, Theft, Training

Hospitality Industry Technology Solutions: California Hotel To Manage Electricity Costs With Innovative Battery Storage System; 30 Percent Savings On Peak Demand Usage Seen

Intercontinental Hotels has run a trial with a 15-kilowatt Stem storage system for the past year, and though Hobbs would not discuss dollar Hotel Utility Costssavings he says he’s seen between a 17 percent and 30 percent improvement in his ability to manage demand. The hotel has 17 Stem systems on order and plans to install two 54-kilowatt battery packs at the Mark Hopkins in San Francisco, which would supply 20 percent of the hotel’s demand.

If a hotel’s energy consumption spikes—say on a hot day when guests all turn on their room air conditioners at once—the utility ratchets up the electricity rate they pay. To avoid these so-called demand charges—which can account for half of a monthly power bill—businesses can participate in programs that cut their bills if they allow their local utility take control of their air conditioners or lighting to reduce electricity use when the grid is overloaded.

Letting hotel guests who pay $300 a night sweat, however, is not an option. So Hobbs has pulled the plug on his utility by storing electricity in lithium-ion battery packs when rates are low for use when demand and prices rise. The battery and sophisticated software was built by a Silicon Valley startup called Stem and is another example of how technological innovation is upending utilities’ century-old stranglehold on power.

Patel says a 54-kilowatt system costs about $100,000, though California state incentives cover about 60 percent of that price. But thanks to a $5 million fund financed by Clean Feet Investors, Stem will offer customers no-money-down installation of battery storage in exchange for monthly fee paid out of the savings on utility bills. Such lease deals unleashed an explosion in residential solar systems and Patel expects to see a similar result in battery storage. Stem has orders for 6 megawatts’ worth of systems and Patel expects that to jump to 15 megawatts over the next year.

For more: http://www.theatlantic.com/technology/archive/2013/11/the-100-000-battery-that-could-help-hotels-save-bundles-of-money/281194/

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Filed under Liability, Maintenance, Management And Ownership, Risk Management, Technology

Hospitality Industry Employment Risks: Georgia Restaurant Sued By EEOC For “Sexual Harassment”; Female Workers Forced To Resign After Not Tolerating The Abuse By Manager

“…According to the EEOC’s suit, the employer allowed six women to be subjected to repeated acts of sexual harassment by a manager.  The Equal Employment Opportunity Commissionsexual harassment occurred throughout the servers’ employment, occurring daily for some…When some of the servers rejected the sexual advances, they were assigned to less profitable sections of the restaurant or had their work schedules negatively changed, which resulted in lower earning opportunities. Although the employees complained to other management officials about the harassment, nothing was done to stop it from recurring…” 

A popular Atlanta-area restaurant/nightclub violated federal law by subjecting female servers to a pattern of sexual harassment by a manager, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed recently against Sirdah Enterprises, Inc., which owns and operates Taboo 2 Bar and Bistro in Roswell, Ga. The agency also alleged that the working conditions were so intolerable that five of the women were forced to resign when they could no longer tolerate the abuse.

It included groping their breasts and buttocks, indecent exposures, explicit sex related comments, requests for sexual favors, and promises of better working assignments and other benefits if they engaged in sexual acts.

Sexual harassment violates Title VII of the Civil Rights Act of 1964.  The EEOC filed the suit in U.S. District Court for the Northern District of Georgia (EEOC v. Sirdah Enterprises, Inc. d/b/a Taboo 2 Bar & Bistro, No. 1:13-cv-03657) after first attempting to reach a voluntary settlement.  The federal agency seeks back pay, compensatory and punitive damages for the servers, as well as injunctive relief designed to prevent such misconduct in the future.

“This case involves charges of gross sexual harassment where a manager, an individual normally entrusted with ensuring that the rights of employees are protected, took advantage of these women by abusing his position of power,” said Bernice Kimbrough, district director for the EEOC’s Atlanta District Office.

Robert Dawkins, regional attorney for the Atlanta District Office, said, “Taboo 2 was aware of the sexually hostile work environment to which these young women were being subjected, but failed to take remedial measures as required under the law.  In addition to vindicating the rights of these seven women, this lawsuit is for the purpose of protecting the rights of current and future female employees.”

The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the EEOC is available on the agency’s web site at www.eeoc.gov.

For more: http://www.eeoc.gov/eeoc/newsroom/release/11-6-13a.cfm

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

Hospitality Industry Safety Risks: Florida Hotel Faces Serious “OSHA Safety Violations” After Death Of Worker Crushed By Elevator; Lacked “Written Lockout/Tagout Procedures”

“…(the Hotel management company) had faced $23,000 in proposed fines for three serious and two other-than-serious alleged violations, Hospitality Industry OSHA Violationsaccording to the citations…RIA-Tradewinds allegedly lacked a written lockout/tagout procedure for the hotel’s elevators, the employee authorized to lockout/tagout the elevator involved in the death didn’t do so, and there was no coordination of lockout/tagout procedures with Progressive Environmental. The two other-than-serious violations involved the lack of documentation for lockout/tagout procedures and training…”

Two companies face $84,000 in proposed fines over the death of a worker in Florida who was crushed by an elevator car while cleaning the bottom of an elevator shaft, according to citations released Nov. 4 by the Labor Department’s Occupational Safety and Health Administration.

The citations, dated Oct. 15, allege the two companies failed to coordinate their lockout/tagout procedures and that employees lacked required lockout/tagout training.

The worker, Mark Allen Johnson, 45, of Tampa, was employed by Progressive Environmental Services, doing business as SWS Environmental Services of Panama City Beach, according to OSHA and police reports. He died April 24 while cleaning oily water from the bottom an elevator shaft at a St. Petersburg Beach hotel. The hotel, Tradewinds Island Grand Beach Resort, is managed by RIA-Tradewinds Inc., according to the citations.

OSHA cited Progressive Environmental for one repeat and four serious alleged violations carrying proposed fines of $61,000.

For more:  http://about.bloomberglaw.com/law-reports/death-of-florida-worker-in-elevator-shaft-results-in-84000-in-fines-10-violations/

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