Category Archives: Management And Ownership

by | November 20, 2013 · 7:12 am

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 Hospitality Industry Wage Violation Lawsuitsmanagement, 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.”

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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by | November 19, 2013 · 10:05 am

Hospitality Industry Social Media Solutions: National Hotel And Restaurant Chains Using Twitter To “Attract A More Stable Following”

“…The idea stemmed from a conversation in which the company suggested one of their properties, and turned a Twitter user into a paying Hospitality Industry Social Media Managementcustomer. In an age when so few people have allegiances to certain companies, Loews are also hoping to attract a more stable following…The chain will launch “social reservations” at 16 of its 19 properties from November 19th, which opens another interesting channel for online users to book their next hotel stay with only a few clicks…”

Following in the wake of a recent tweet-a-coffee initiative from Starbucks, Loews Hotels and Resorts have made the decision to allow social media users to book a room through Twitter.

With 34% of hotel room revenue comes from online and mobile app bookings, the chain is hoping to give people in their 20s and 30s another way to book their stay without having to pick up the phone.

Here’s how the process works: Send a tweet to @Loews_Hotels with the hashtag #BookLoews to show you’re interested, after which a Loews travel planner will join in the conversation. Once all the details are taken care of, the planner will tweet a link to a secure chat conversation where you can process your payment information.

For more:  http://www.psfk.com/2013/11/twitter-hotel-bookings.html

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by | November 18, 2013 · 10:24 am

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 Equal Employment Opportunity Commissionwhen 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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by | November 17, 2013 · 10:21 am

Hospitality Industry Legal Risks: Florida Restaurant Faces Federal “Sexual Harassment Lawsuit”; Manager Created “Hostile Work Environment”, Retaliated Against Two Female Workers

“…(one plaintiff) worked at the restaurant from 1999 to February of 2012 and she complained to the restaurant’s owner about the manager’s Hospitality Industry Sexual Harassment Lawsuitsuse 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.

For more: http://www.theledger.com/article/20131116/NEWS/131119396/1374?Title=Ex-McDonald-s-Employees-File-Lawsuit

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Hospitality Industry Wireless Technology: Hotels Offered Free Wi-Fi At 64% Of Properties In 2013 With Guests Expecting Speeds Up To 5 Mbps

Hotel Wi-Fi Report

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by | November 16, 2013 · 11:34 am
by | November 15, 2013 · 9:15 am

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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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
by | November 13, 2013 · 9:28 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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by | November 12, 2013 · 9:35 am

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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by | November 11, 2013 · 10:48 am

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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