Category Archives: Risk Management

by | April 17, 2013 · 7:22 am

Hospitality Industry Legal Risks: Hotel And Restaurant Hiring Policies Must Be Neutral On Employee “Sex Stereoyping”; EEOC To Enforce “Broad Definition Of Sex Discrimination”

The EEOC Title VII effort to protect LGBT (Lesbian, Gay, Bisexual and Transgender) workers relies on a broad definition of sex discrimination, treating harassment and discrimination claims under a “sex stereotyping” theory…The EEOC’s new emphasis on LGBT protections will shape its EEOCfuture en­­force­­ment and litigation against private employers, especially in states that don’t protect gender identity or sexual orientation. Expect the EEOC to educate the LGBT community about its recent rulings. Also expect more charges and more vigorous investigations…Make sure your policies are neutral with regard to sexual orientation, gender identity and expression, and prohibit harassment based on sexual preference, gender stereotypes or intolerance.

Federal law doesn’t prohibit discrimination against lesbian, gay, bisexual and transgender (LGBT) workers. Instead, LGBT protections are a varied patchwork of judicial and agency interpretations and state and local laws that make discrimination actionable only under specific circumstances. LGBT workers continue to face employment discrimination with relatively few legal protections.

In response, the EEOC has begun an effort to protect LGBT workers’ rights by broadly interpreting Title VII of the Civil Rights Act of 1964. The EEOC’s newly released Strategic Enforcement Plan for 2013-2016 lists “coverage of lesbian, gay, bisexual and transgender individuals under Title VII” as one of its top six national en­­forcement priorities. Expect the EEOC to take significant enforcement actions soon and litigate issues more aggressively.

No national law explicitly bans workplace discrimination based on sexual orientation or gender identity. Title VII’s language only protects individuals on the basis of “race, color, religion, sex, or natural origin.” LGBT advocates have tried to amend Title VII to add sexual orientation, expression and identity, but have consistently failed.

For more:  http://www.businessmanagementdaily.com/35121/eeoc-steps-up-efforts-to-protect-against-lgbt-bias-harassment

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by | April 16, 2013 · 5:36 am

Hospitality Industry Health Insurance Solutions: Large Hotel Group “Incentivizing Employees” To Complete Risk Assessments And Increase Activities As Part Of Wellness Program

“…Company executives started by incentivizing employees to complete a risk assessment at no cost to them, and they would receive $50 for their trouble. Approximately 70% of employees participated in the program…(the company) added additional incentives to its wellness program such health insurance nationalas having employees voluntarily pick three activities to improve health. Activities included joining a nutritional plan such as Weight Watchers, joining a fitness club, joining a group exercise plan, getting a dental exam or telephone coaching…”

One of the leaders in addressing the future of health care in the hospitality industry is Loews Corporation. Beginning in 2007, Loews looked at how to improve employee health as part of a self-insurance program. The company saw the benefits of a healthier workforce not only costing Loews less for medical care but also fewer sick days on the job.

With this initial success, Loews increased the incentive to $200 the next year but required employees to agree to a telephone coaching program regarding their health. The participation level dropped to 22%. After walking around talking to employees, executives figured out that employees wanted to hear it from their own doctor. So, the program was adjusted and saw the participation rate increase dramatically. Now, employees go to their doctor to get a preventive exam and do a biometric screening.

Next year, in conjunction with ACA, Loews will remove the direct incentive but will have a two-tiered health plan where if employees have an annual biometric exam with their doctor and select three approved healthy activities to participate in, they will qualify for a lower cost plan. If not, the employee will have a health-care plan with a higher premium as required by their plan administrator.

The hope is that employees will become engaged in wellness activities, choose healthy living habits and help contain health-care costs below the Cadillac tax limit. If for any reason this does not happen, Loews employees have been brought into the discussion that the option of increasing the portion employees pay for their health-care premium, currently set at a low level, may become the only alternative. That’s a real incentive, and innovation at work.

For more:  http://www.hotelnewsnow.com/Articles.aspx/10292/Wellness-programs-mitigate-health-care-costs

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by | April 15, 2013 · 7:24 am

Hospitality Industry Employee Solutions: Hotels Benefit From Hiring Workers With “High Levels Of Energy” With Potential For Advancement

“…there are managers at the Clevelander who started as servers. Many of the employees are considered part of the marketing team because they Hotel Employee Satisfactionhelp market the brand and promote products and services. They do so in the way they look, what they wear and how they interact with guests…You need more skills than you used to…years ago you said, ‘Here’s a mop and a bucket.’ Now there is a lot more detail to every job—even targeted chemicals for cleaning. There is better awareness of load lifting because it’s tougher to pick up a thick pillow foam mattress; and housekeepers have to make sure TVs are functioning…”

Geoffrey Mills, managing director of the Crowne Plaza Times Square and chair of the Hotel Association of New York City, said that while half his workforce is 45 years or older, there is only 3% to 4% annual turnover. The biggest challenge for hoteliers, Mills said, is the cost of operations. “We are trying to tighten employee costs,” he said.

Vijay Dandapani, president and COO of Apple Core Hotels, which has five limited-service properties in Manhattan, said it’s more difficult to find entry level jobs in limited service. “But we do represent the potential for advancement,” he said. “We have three people who came in at entry level and are now GMs.”

Costs also are an issue for Dandapani, who said that his real estate taxes are up 100% in the past few years. All of his employees are unionized, he said, adding: “All hotel employees around the world want to be here because of our respect for property rights and the city’s safety.”

At the non-union Clevelander in South Beach, Florida, turnover is an issue because many associates are in college.

“We try to be as flexible as possible with their scheduling, but there is still 56% turnover,” said Annie Borges, director of human resources for the 60-room hotel, which is heavily driven by its food-and-beverage revenue.

“We hire the smile and train the skill,” she said. “You can’t teach people to be nice, but you can teach them to make the bed. They have to be happy and have a high level of energy.”

Borges said that she has worked in hospitality HR in Miami for nearly 20 years and there is always talk of pending unions.

“But they never come to fruition. Perhaps because we aim to establish a pro-employee type of environment,” she said. “The only union hotel on the beach is the Fontainebleau.”

For more:  http://www.hotelnewsnow.com/Articles.aspx/10290/Outside-issues-create-labor-situations

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by | April 11, 2013 · 6:34 am

Hospitality Industry Legal Risks: New York Restaurant And Caterer Sued For “Retaining 20% Service Personnel Charge”; Seeking Class-Action Status For More Than $1 Million In Tips

“…(the complaint states) a ‘reasonable customer’ would have believed the surcharge to be a gratuity…if customers asked if the waiters and waitresses got tips, they were ordered ‘to respond, as instructed by defendants, that they did receive tips’…(the Hospitality Industry Wage Violation Lawsuitsdefendants) knowing or intentional demand for, acceptance of, and/or retention of the mandatory charges paid by customers when contracting with defendants, when such customers were led to believe that such mandatory charges would be paid to plaintiff, defendants have willfully violated New York law…(plaintiffs) seek class certification, restitution of the tips, and costs…”

A class action claims an upstate New York restaurant and caterer cheated its workers out of more than $1 million in tips.

The defendants added a 20 percent “service personnel charge” to all its banquet hall bills, but servers never saw dime one of it, lead plaintiff Ryan Picard claims in Albany County Supreme Court.

Picard claims the family-owned businesses ran the game for 6 years, at the expense of more than 100 workers.  Named as defendants are six entities associated with the Mallozzi family of suburban Schenectady, who operate bakery, restaurant, hotel and catering businesses in Albany and Schenectady counties.

For more:  http://www.courthousenews.com/2013/04/11/56574.htm

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by | April 10, 2013 · 8:20 am

Hospitality Industry Health Risks: Hotel And Restaurant Food Handlers Are The Major Source Of Reported “Foodborne Hepatitis A Outbreaks”; Improved Hygiene And Preventive Vaccinations Lower Virus Transmission

“…the source of most reported foodborne hepatitis A outbreaks had involved infected food handlers, such as those Hepatitis A in Hospitality Industryin restaurants or those who prepare food for social events such as weddings…(workers) who have had possible exposure to Hepatitis A and get the necessary shots within 2 weeks of exposure…will have long-term protection against the virus… people infected with the virus are the most infectious two weeks before they actually become ill (and) can be passing the disease on to other people without even knowing they have it…”

What could be better than dining with friends or family at a popular upscale candlelit restaurant in New York City — a restaurant with an “A” sanitation grade from the city’s Department of Health and Mental Hygiene?

While that’s how the story began for many of the people who ate at Alta restaurant in the West Village from March 23 to April 2, it ended with the jolting news that if they had had dessert during that time period, they should get a shot (and another one 6 months later) to protect themselves against hepatitis A.

The restaurant’s manager, Manny Solano, told reporters that a pastry chef who had traveled to Mexico discovered she had hepatitis A after going to a doctor because she wasn’t feeling well. It turned out she had contracted the virus during her trip south of the border. In the case of a restaurant employee, hepatitis A can be spread to food or surfaces — and from there to people dining or working at the restaurant — if the worker doesn’t follow basic hygiene practices, chief among them washing his or her hands after going to the bathroom.

And while most food handlers with hepatitis A do not transmit the virus to fellow workers or restaurant patrons (based on surveillance data), many hundreds of restaurant workers have hepatitis A every year, according to the article.

The article concludes by saying that reducing foodborne transmission of the virus can be achieved by improving food production and food handler hygiene and by providing preventive vaccinations to people at risk for infection.

For more:  http://www.foodsafetynews.com/2013/04/dessert-followed-by-a-hepatitis-a-shot/#.UWWNA0nn9et

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by | April 9, 2013 · 6:37 am

Hospitality Industry Health Solutions: Hotel And Restaurant Kitchen Cleanliness Reflects Employees’ “Commitment To Businesses’ Success”

“…the cleanliness of a kitchen is an indicator of workplace culture and the commitment of your employees to contribute to enterprise success Hospitality Industry Kitchen Cleanlinessand value. If you see it getting  messy, you may have underlying problems that need to be addressed immediately…if (employees) are not washing the kitchen in the workplace, it means that they see  themselves more as renters than as owners. It means that they feel transitory,  that they’re passing through. They don’t have a real psychological contract with  the company, space, workplace. That’s a problem.”
So stop what you’re doing and deal with the problem…”

One of the best ways to predict the quality of meals and service at a  restaurant is to examine the restroom. Restrooms — including toilets, tiles and washbasins — are among the  easiest rooms to clean. If a restaurant staff can’t keep the restroom clean,  then you can be sure that the kitchen will be worse. It doesn’t matter if it’s a  fancy, upscale restaurant or simple diner.

Messy kitchens tend to breed foodborne pathogens, poor quality food and  indifference to customers. Conversely, clean kitchens reflect healthiness,  passion for quality and desire to delight customers. That’s why the world’s best  kitchen staffs — even many quick-serve restaurants — consider organization and  technique the foundation of everything else.

Read more: http://www.mediapost.com/publications/article/197645/what-workplace-kitchens-say-about-the-health-of-yo.html#ixzz2PyRj0cDc

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by | April 8, 2013 · 6:27 am

Hospitality Industry Property Risks: New Jersey Restaurant Fire Caused By “Discarded Cigarette” In Flowerbed; Damage To Exterior Walls And Walk-In Refrigerator Forces Closure

“…a lit cigarette discarded in the mulch of a flowerbed outside the building caused the fire…the fire caught hold of Styrofoam, which was used as Restaurant Firebacking for part of the building’s exterior, travelled up the wall, and moved to the wood beams in the ceiling and window openings…The restaurant has been closed until proper repairs can be made and inspected by town officials…”

A discarded cigarette started a fire that has closed Fuddruckers restaurant, authorities said. Firefighters found heavy smoke inside a walk-in refrigerator and a “moderate” fire inside walls and the ceiling of the building Sunday at about 4 p.m., said Steven Toth, fire commissioner.

Fire crews had to open interior and exterior walls to battle the blaze, Toth said. All “visible flames” were knocked down 30 minutes after firefighters arrived on scene.

For more:  http://wayne.patch.com/articles/discarded-cigarette-causes-fire-that-closes-fuddruckers

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by | April 7, 2013 · 6:51 am

Hospitality Industry Payment Security: More Restaurants And Hotels Are Using “Mobile Credit Card Readers” To Increase Efficiency; FTC Report Cites Financial Information Security Issues

Mobile Payment Report FTC-page-001

The report encourages industry-wide adoption of strong measures to ensure security throughout the mobile payment process. The report addresses ways sensitive financial information can be kept secure during the mobile payment process, such as through end-to-end encryption. The possibilities for encryption listed in the report cover everything from the authentication of data during the transaction to the secure storage of information on a mobile device. Click on “Mobile” to read report.

“The Smelly Cat Coffee Shop in Charlotte is one of the nation’s top users of the Square card reader. The business uses the device for all of its credit card transactions…(the restaurant) says customers’ card info is safe because the program doesn’t allow cashiers to see customers’ information when they swipe…”

Mobile credit card readers like the Square and Intuit devices are growing in popularity around the country. The devices offer merchants the ability to accept credit card payments anywhere and are often less expensive than traditional card swiping technology.

But the Federal Trade Commission and consumer watchdog groups are urging consumers to be vigilant about protecting their financial information when using the devices. The FTC recently released a report on the growing popularity of mobile payment devices. The report did not name any specific threats that come from using mobile card devices.  The agency is urging consumers, as well as merchants, to make sure that financial data is protected in each transaction.

The Better Business Bureau said consumers should make sure they trust the merchants they allow to swipe their debit and credit cards using the devices. It is buyer beware. According to Janet Hart of the BBB, people should be careful how, when, and where they use their credit card; because, there is the chance data could be misused.

Staff at the shop said they have not had any negative reactions from customers using the device at the store.

“It’s a similar security that you would find on a receipt, on a printed receipt, that a waiter or waitress would be exposed to in a restaurant,” said Burleson. However, advocates said consumers should use the same caution when using the mobile readers that they would use when ordinarily swiping their credit cards.

For more:  http://centralny.ynn.com/content/top_stories/654110/mobile-card-readers-spike-in-popularity–groups-urge-concern-over-possible-id-theft/

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by | April 6, 2013 · 6:23 am

Hospitality Industry Legal Risks: North Carolina Restaurant Operator Sued By EEOC For “Religious Discrimination”; Muslim Food Prep Worker Fired For Refusing To Cut Off Beard

“…(plaintiff) applied for a job with a Bojangles’ restaurant in Charlotte and was interviewed for a food prep position…the manager informed Charles that he might need to cut his beard, to which Charles responded that he could not cut his beard for religious reasons, informing her that EEOChe was a Muslim. Charles was hired and worked at the restaurant on May 18 without incident…Charles reminded the manager that he could not cut his beard because of his religion, and requested an accommodation of wearing a beard net, similar to a hair net, which the restaurant manager refused. The restaurant manager told Charles to leave the restaurant, and to not return to work until he shaved off his beard. Charles refused to shave his beard and was consequently fired…”

Bo-Cherry, Inc., a North Carolina corporation that operates several Bojangles’ restaurants in the Charlotte metro area, violated federal law when it failed to accommodate an employee’s religious beliefs and then fired him because of his religion, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

According to the EEOC’s complaint, Devin Charles has been a practicing Muslim for the past 14 years. As a male Muslim member of his sect of the Sunni branch of the Islamic faith, Charles is required to grow and maintain a beard and is not allowed to trim or cut his beard unless it exceeds the length of his fist when holding his beard in his closed hand under his chin, commonly referred to as “fist length.” In accordance with his sincerely held religious beliefs, Charles has not trimmed or cut his beard unless it exceeded a fist length

The manager instructed Charles that her supervisor, the district manager, had come to the restaurant, seen Charles’ beard and instructed her to tell Charles that he needed to shave off his beard to continue working for Bojangles’.

Title VII of the Civil Rights Act of 1964 requires employers to make reasonable accommodations for the sincerely held religious beliefs of employees as long as doing so does not pose an undue hardship on the employer. The EEOC filed suit in U.S. District Court for the Western District of North Carolina, Charlotte Division (EEOC v. Bo-Cherry, Inc. d/b/a Bojangles, Civil Action No. 3:13-cv-00210) only after first attempting to reach a pre-litigation settlement through its conciliation process. The EEOC seeks back pay, compensatory damages, punitive damages and reinstatement or front pay. The complaint also seeks injunctive relief.

“Under federal law, employers have an obligation to attempt a fair balance between an employee’s right to practice his or her religion and the operation of their business,” said Lynette A. Barnes, regional attorney for the EEOC’s Charlotte District Office. “This case demonstrates the EEOC’s commitment to fighting religious discrimination in the workplace.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/4-4-13.cfm

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by | April 5, 2013 · 6:42 am

Hospitality Industry Employment Solutions: Hotel Owners Must Utilize “Modern Technology And Processes” To Increase Positive Working Atmosphere For “Back Of House Employees”

“…modern technology that maximizes efficiency is lending a hand to the process of putting employees in a positive state of mind…take good care of the staff and they’ll return the favor to the guests…Placing the newest technology in the back of house at any resort is just as important as using it for guestrooms and amenities…”

Hotel Employee SatisfactionAny customer-centric business is only as good as its weakest link. Money spent on a strong back of house will surely pay dividends. It’s crucial for the back of house at a resort to create a pleasant, efficient atmosphere for the employees which, in turn, influences the service they provide to guests and increases productivity.

At Revel, the new $2.4-billion luxury property in Atlantic City, New Jersey, the back of house is as nice as the guest amenities at many resorts. With more than 1,800 rooms, 10 swimming pools, 14 restaurants and more than 4,000 employees, having an efficient, enthusiastic and motivated staff is critical for Revel.

  • Efficient elevators At Revel, the elevators are reminiscent of Disney World. You walk to where you need to go, leave the wardrobe area and then magically appear somewhere else. The elevators were designed to be fast. By combining group dispatching with directed elevator shafts and proper speed settings, it’s easy to get employees where they need to be without delay. The employee elevators at Revel move with efficiency and on multiple tracks, so employees aren’t stuck wasting time traveling from location to location. Instead, the speed instills a sense of energy that’s designed to prepare the staff on a positive note.
  • Wardrobe conveyor systems Elevators aren’t the only technological advancements. Employees never have to worry about misplaced work uniforms, having to press their uniform or leaving a piece behind accidentally. Meet Revel’s wardrobe process and conveyor systems. Each employee is provided three uniforms (one to wear, one as a backup and one that is being laundered).
  • Touchdown stations Employees can check email and message people from touchdown stations. These stations enable employees to stay in touch with the outside world while at work and when it’s appropriate. Additionally, they can use the touchdown stations to get the latest information on the events in the hotel and other information that prepares them to be a resource for any guest.
  • Communications Instant communication is a major part of today’s customer service. By communicating through cell phones—sometimes provided by employers—supervisors have quick and easy ways to relate situations to all needed members of staff. Immediate response better serves the guest.
  • Efficient food services When employees have to leave work for lunch or worry about paying for food, their attitude on the job can be affected. By providing employees with a hassle-free way to get their meals in a relaxing and calm environment, they can focus on the job at hand. Quick meals, such as muffins and coffee in the morning and sandwiches and sodas at lunch, are readily available in the employee dining room. This is particularly important for 15-minute mid-shift breaks. Employees are provided access to upscale dining with multiple choices that are available 24 /7.

For more:  http://www.hotelnewsnow.com/Articles.aspx/10237/Back-of-house-technology-makes-staff-happier

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