Category Archives: Risk Management

Hospitality Industry Legal Risks: Texas Man Born Without Hands Sues Amusement Park After “Operator Refused To Let Him On Ride”

“…after (he) complained to the park, Six Flags changed its policy for the ride he was not allowed to board. Now, a person must have “one full arm and one full leg” for entry…Bench says he hopes his lawsuit will change the Hospitality Industry ADA Lawsuitsway the park handles disabled customers and safety concerns. He says he hopes to “set a precedent that there is a better solution than what’s in place now.”

A Texas man born without hands is suing a major theme park after he was barred from a ride allegedly because of his disability. Clint Bench says he had been to the Six Flags in Arlington many times and never had a problem with the staff. But on a trip to the theme park in May, an operator refused to let him on a ride.

Bench went to guest services but had no luck. So he hired a lawyer and is now suing the park for violating the Americans with Disabilities Act.

“We repeatedly offered to resolve this with Six Flags for not a dollar. Clint was absolutely adamant when he came to me that this was not about him getting a dollar,” his lawyer Levi McCathern said.

Read more: http://www.nydailynews.com/news/national/clint-bench-flags-times-issuese-riding-knew-knew-article-1.1264187#ixzz2L4ZII2j2

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

Hospitality Industry Theft Risks: Hawaii Hotel Employee Arrested For Stealing $11,000 Worth Of Jewelry And Goods From Luggage In Storage Room

“…a review of video surveillance of the storage room revealed that Bueno allegedly entered into the storage room through the service elevator, picked up and concealed the bags within his work cart and exited the hotel securitystorage room…a few minutes later shows (him) allegedly reentering the storage room and placing the bags back on a bellman cart, then exiting again through the service elevator…”

An employee from a hotel in Wailea was arrested on Monday on suspicion of theft after a couple visiting from Maryville, MI, reported more than $11,000 in jewelry and other goods missing from their bags after check-in, police said. Maui police arrested resort houseman, John Bueno for alleged second degree theft in connection with the incident.

According to police reports, the couple arrived at the hotel at around 1:20 p.m. on Monday Feb. 11, checked their bags with a bellman, and proceeded to the pool area to wait until their room was ready.

A few minutes later, police say the female visitor returned to the bell desk and inquired about one of the bags to retrieve an item from within. A check of the storage room found all of their bags missing, and a search of the area by security personnel and hotel managers turned up with negative results.

A few minutes later, another check of the storage room revealed that the bags were returned; however, upon checking each bag, it was learned that various pieces of jewelry and a camera totaling $ 11,100 were missing, said Maui Police Lt. Wayne Ibarra.

Bueno was placed under arrest later that afternoon, and posted bail, which was set at $1,000. He is scheduled to appear in court at 10:30 a.m. on March 14, 2013.

For more:  http://mauinow.com/2013/02/14/wailea-hotel-worker-arrested-in-theft-case/

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

Hospitality Industry Health Risks: Bedbug Infestations Rise In 2012 With Chicago, Detroit, Los Angeles And Denver Reporting Most Treatments

“…bedbugs continue to be a problem throughout the U.S…(there is a) need to be very cautious when we travel – Bed Bugs in Hotel Roomswhether it is business or pleasure, or to visit family, friends or vacation.”

Bedbugs are on the rise again in the U.S., which means business is booming for pest control companies like Orkin. With increased travel, both internationally and domestically, and higher bedbug resistance to existing pesticides, Orkin has seen an almost 33 percent boost in bedbug business compared to 2011.

The company has just released its rankings of U.S. cities in order of the number of bedbug treatments from January to December 2012. The “Windy City” of Chicago tops the list, followed by Detroit, Los Angeles, Denver and Cincinnati.

Here are the top 50 U.S. cities, ranked in order of the number of bedbug treatments.  The number in parenthesis is the shift in ranking compared to January to December 2011:

  1.     Chicago (+1)
  2.     Detroit (+1)
  3.     Los Angeles (+2)
  4.     Denver
  5.     Cincinnati (-4)
  6.     Columbus, Ohio
  7.     Washington, D.C. (+1)
  8.     Cleveland/Akron/Canton (+5)
  9.     Dallas/Ft. Worth (-2)
  10.     New York (-1)
  11.     Dayton, Ohio (+4)
  12.     Richmond/Petersburg, Va. (-2)
  13.     Seattle/Tacoma (+14)
  14.     San Francisco/Oakland/San Jose (-2)
  15.     Raleigh/Durham/Fayetteville, N.C. (+4)
  16.     Indianapolis (+15)
  17.     Omaha, Neb. (+11)
  18.     Houston (-7)
  19.     Milwaukee (+13)
  20.     Baltimore (-2)
  21.     Syracuse, N.Y. (+2)
  22.     Boston (-8)
  23.     Colorado Springs/Pueblo, Colo. (+2)
  24.     Lexington, Ky. (-2)
  25.     Miami/Ft. Lauderdale (-1)
  26.     Hartford/New Haven, Conn. (+10)
  27.     Knoxville, Tenn. (+11)
  28.     Buffalo, N.Y. (+1)
  29.     Atlanta (-8)
  30.     Louisville, Ky. (+5)
  31.     Charleston/Huntington, W. Va. (+18)
  32.     San Diego, Calif. (-6)
  33.     Cedar Rapids/Waterloo, Iowa (+12)
  34.     Minneapolis/St. Paul (+12)
  35.     Phoenix (-1)
  36.     Pittsburgh (-6)
  37.     Honolulu (-19)
  38.     Grand Rapids/Kalamazoo, Mich. (+1)
  39.     Grand Junction/Montrose, Colo. (-1)
  40.     Nashville, Tenn.
  41.     Lincoln/Hastings/Kearney, Neb. (+7)
  42.     Albany/Schenectady/Troy, N.Y. (+2)
  43.     Charlotte (-10)
  44.     Tampa/St. Petersburg, Fla.
  45.     Sacramento/Stockton/Modesto, Calif. (-4)
  46.     Las Vegas (-30)
  47.     Greenville/Spartanburg/Asheville, S.C.
  48.     Champaign/Springfield, Ill.
  49.     Portland, Or.
  50.     Sioux City, Iowa

For more: http://ehotelier.com/hospitality-news/item.php?id=A24912_0_11_0_M

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

Hospitality Industry Legal Risks: New York Restaurant Sued By Woman Hit By Car Outside Building; Neglected To Install “Curbs And Bollards”

“…the (plaintiff’s attorney) said Wendy’s only installed pedestrian safety blocks after the crash in December. He said if the restaurant had curb stops and bollards in place at the time of the incident, the tragedy would Hospitality Industry Injury Lawsuitshave been prevented…”

Theresa DiMilia and her 11-year-old daughter Samantha walked out of the Wendy’s restaurant on December 4 in Williston Park when suddenly a car being driven by an elderly woman smashed into them and pinned them against the wall. “The pain was so unbearable. I remember my daughter Samantha asking me if she was dead — ‘Am I alive mommy, am I alive?’” Theresa DiMilia told 1010 WINS’ Mona Rivera.

Their legs were crushed. Samantha DiMilia was treated and released after suffering a severely fractured leg. Now, two months later, Samantha is walking again, but Theresa DiMilia is still in a wheelchair after having both legs fractured in the incident.

The lawsuit names the driver of the vehicle who hit the DiMilias — 75-year-old Margaret Hogarty of Mineola — as well as Wendy’s International Inc. and Westbury Properties, LLC, which owns the property where the restaurant is located, as defendants.

For more:  http://newyork.cbslocal.com/2013/02/11/wendys-named-as-defendant-in-multimillion-suit-filed-by-injured-mother-daughter/

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

“2013 Hospitality Law Conference”: Petra Risk Solutions To Host The “Convergence Of Risk Management, Legal Compliance And Loss Prevention” Workshop On Feb 11

Hospitality  Law  Conference flyer-page-001

Hospitality  Law  Conference flyer-page-001

Hospitality  Law  Conference flyer-page-001

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Filed under Conferences, Guest Issues, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

The “11th Annual Hospitality Law Conference” Welcomes Inaugural “Hotel Owner Management Summit” On Feb 11-13 In Houston, TX

2013 Hospitality Law conf-page-001

The 11th Annual Hospitality Law Conference, located at the Omni Houston Hotel, is the leading conference dedicated to hotel and restaurant legal, safety, and security issues. Since its inception, the conference has dramatically expanded in scope, uniting hundreds of industry executives and other thought leaders around the most pressing issues in the hospitality field. These exciting and educational sessions are crafted to bring attendees up to speed and anticipate future challenges.

2013 Hospitality Law Conference Brochure

Click on “Hospitality” to view Conference Brochure

This year, we are pleased to announce the inaugural Hotel Owner Management Summit (HOMS) that will be co-located at the Hospitality Law Conference (HLC) on February 11, 2013. The HOMS features three tracks that include the New Hotel Development, Management Agreements, and Hotel Investments Boot Camp. With new hotel development on the rise again, this is a great opportunity for owners, brokers, developers, management companies, lenders, receivers, asset managers, and attorneys to converge and discuss the latest trends and best practices. Lawyers learn about the financial aspects of deals and the financial experts have a better understanding of the legal and compliance aspects.

The Conference provides intensive education and exceptional networking among legal, development, risk, finance, HR and operations. (CLE, CPE, HRCI and AH&LA EI credits are available for attendees.)

Conference Schedule-at-a-Glance

February 11th Pre-Conference Workshops

  • The Convergence of Risk Management, Legal Compliance, and Loss Prevention
  • Restaurant and Hotel Corporate Counsel

February 11th Hotel Owner-Management Summit New Hotel Development

  • Management Agreements
  • Hotel Investments Boot Camp

February 12th-13th Hospitality Law Conference General Sessions

  • Lodging
  • Human Resources & Labor Relations
  • Food & Beverage

Register today to attend the conference! Further conference information can be found at http://www.hospitalitylawconference.com/. Please contact Janet Le at janet@hospitalitylawyer.com or call us at 713-963-8800 for additional inquires.

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

Hospitality Industry Legal Risks: Louisiana Hotel Sued By Lobby Concierge For “Age Discrimination”

“…she was terminated in June 2012 from her position as a lobby concierge. At the time of her termination, she Hospitality Industry Lawsuitwas 53 years old…the plaintiff is asking for an award of damages for loss of pay, pain and suffering, mental anguish and distress, medical expenses, interest, and attorney’s fees…”

A former Ritz-Carlton concierge has filed an age discrimination lawsuit claiming she was terminated from her position due to her age and not because she left her shift two hours earlier than scheduled. Claudette Breve filed suit against The Ritz-Carlton Hotel Co. on Jan. 11 in federal court in New Orleans.

Breve began working at the Marriott Hotel in New Orleans in February 1998 and transferred to the Ritz-Carlton Hotel in September  2000.

According to the court record, the defendant states it terminated Breve from her position because she violated hotel policies by leaving work early without the authorization of her supervisor. In response, Breve admits she left her shift early and states that she had arranged for another concierge to cover her shift. The other concierge failed to complete Breve’s shift and the replacement concierge arrived late for a shift. Breve and the person she arranged to complete her shift were fired over the incident, court documents state.

The defendant is accused violating the Age Discrimination in Employment Act.

For more:  http://louisianarecord.com/news/248884-ritz-carlton-concierge-files-age-discrimination-lawsuit-after-termination

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Business Risks: Hotel And Restaurant Companies Must Make Plans For “Natural Disasters” That Comply With Federal Employment And Safety Laws

“…Employers only have to pay em­­ployees for hours actually worked, unless they have a collective bargaining agreement or contractual arrangement that says otherwise. Normally, employees are not entitled to pay for Coastal Floodingwork that was scheduled, but did not occur because of the disaster…Floods and other natural disasters may bring allergens and pollutants to the workplace, triggering possible ADA accommodations. Employees may need time off under the FMLA…”

When Hurricane Sandy roared up the East Coast in October, it brought immense destruction to heavily populated areas. Similarly, the June 2012 derecho storm that tore through the Midwest and Mid-Atlantic produced destructive winds and at least one tornado. People in the Midwest and the South are still dealing with prolonged drought.

All brought business to at least a temporary standstill. Employers must be prepared for a variety of disaster scenarios. And while they focus on getting up and running again, they must still comply with federal em­­ploy­­ment laws.

THE LAW: The Fair Labor Standards Act (FLSA) sets strict wage-and-hour requirements for paying employees—regardless of how high the water rises. Floods and other natural disasters may bring allergens and pollutants to the workplace, triggering possible ADA accommodations. Employees may need time off under the FMLA.

Employers that must clean up their facilities may face hazards requiring worker protections under the Occupational Safety and Health Act.

WHAT’S NEW: In the wake of Hur­­ricane Sandy, the U.S. Depart­­ment of Labor has launched a disaster pre­­paredness page with guidance and contact information for both employers and employees.

Additionally, OSHA provides count­­less resources on handling flood and cleanup hazards in its Fact Sheet on Natural Disaster Recovery.

HOW TO COMPLY: Employers must deal with two very practical matters in the aftermath of a natural disaster: workplace cleanup and paying workers. Federal law affects both.

Cleaning up

A major disaster changes the workplace’s entire environment. Power may be out, gas lines may have ruptured, overhead electrical wires may be dangling. All can be deadly.

Cleanup is hard work. OSHA ad­­vises cleanup crews to use good lifting techniques and take frequent breaks. When lifting heavy objects, employees should work in teams so no one has to lift more than 50 pounds alone.

Make first aid kits readily available. Provide training so employees know how to prevent infection by cleaning and protecting cuts and abrasions. Pro­­tective clothing should include watertight boots with steel toes and insoles, long pants, safety glasses and a hard hat if there’s a danger of falling debris.

If cleanup crews encounter mold, they should wear respirators approved by the National Institute for Occupational Safety and Health.

When handling hazardous chemicals, employees must follow specific instructions for protective clothing.

When moving ladders or scaffolds, make sure employees know to watch for low-hanging power lines. When connecting generators to active power systems, instruct them to shut down and lock main breakers to prevent energizing outside power lines on which utility workers may be working. Have expert electricians inspect lines that are damaged or submerged.

Similarly, if anyone detects a gas leak, ensure they know to evacuate the building and notify utility crews.

FLSA issues

Natural disasters can wreak havoc on payroll operations. Maintain redundant systems to avoid losing payroll records and preserve the ability to issue paychecks. Many payroll companies offer cloud or offsite storage of wage-and-hour data so even if your facility is damaged or destroyed, existing payroll information is preserved.

Generally, employers must meet regularly scheduled paydays, but disasters have a way of upsetting normal routines. Employers that anticipate having difficulty meeting payroll should contact the DOL’s Wage and Hour Divi­­sion at (866) 4USWAGE (487-9243) for guidance.

For more:  http://www.businessmanagementdaily.com/34280/disaster-averted-make-emergency-preparedness-part-of-your-job

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Filed under Claims, Employment Practices Liability, Insurance, Labor Issues, Management And Ownership, Risk Management, Training

Hospitality Industry Security Risks: Hotels Should Employ “Motherboard Fix” To Make Electronic Door Locks Secure From Hacking And Break-In

“It’s the older Onity locks that are subject to hacking,” Seiders said. “With the old locks, which were the best at the time, the encryption code that authorizes the lock to open has been installed on all of those individual Onity Electronic Locklocks. The hacking device, when it’s plugged into the lock, fools the lock into thinking it’s an authorized programmer. The newer locks don’t have the encryption code in each one; the code is issued at the front desk.”

Following a robbery at a Houston hotel in which thieves exploited security flaws in Onity locks first revealed at the Black Hat conference in July, Hotel Management spoke with Todd Seiders, director of risk management at Petra Risk Solutions and former director of loss prevention at Marriott, for tips on how hoteliers can keep their rooms secure.

“[Onity] immediately started offering the caps and screens to block the port that causes the vulnerability, but I don’t think that’s a very valuable option, because if you block these terminal ports and you have an emergency in the room and the lock has failed, you have to be able to plug in the portable programmer or you’ll have liability issues,” Seiders said. “The thing to take advantage of now is the motherboard switch out. If you mail it in within a reasonable amount of time they’ll replace it for free. The motherboard fix, that’s what these hotels should be doing.”

While Seiders noted that the recession has meant less money available for full-time security staff and new equipment like cameras, he emphasized the importance of staff training in hotel security. “My advice is to go walk the halls and if you see a person standing in the hallway go and look at him for 60 seconds. He’ll either go to a room, or, if not, approach him and say ‘what’s up,’ find out if you can help him. Customer service is the best security.”

Seiders also pointed out that the newer models are not as vulnerable to hacking.

In a statement from Onity, the company said, “Over the next several weeks, we will ensure all hotel properties in our database receive the mechanical solution. These mechanical caps and security screws block physical access to the lock ports that hackers use to illegally break into hotel rooms. The mechanical solution remains free of charge to customers. Technical solutions vary depending on the age, model and deployment of locks at properties.”

For more: http://www.hotelmanagement.net/operations-management/keep-your-rooms-secure-from-door-lock-hackers

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

Hospitality Industry Legal Risks: New York Hotel Settles Federal Class-Action Lawsuit For $550,000; “Service And Grutuity Charge” Not Paid To Workers

“…alleged that guests were not told that service charge was part of their bills. The amount of charge varied, depending on the service…in the dining room, standard meals were charged at a certain amount per diner Hospitality Industry Class Action Lawsuitswhether it was $5 or $8 or whatever, per meal, and also that the lodging charges were per night…”

Leatherstocking Corp., owner of the Otesaga Resort Hotel in Cooperstown, has agreed to pay a $550,000 settlement in a federal class-action lawsuit brought by service workers, largely over the distribution of service-charge proceeds. The workers alleged in the suit filed in Albany in 2010 that the hotel’s actions violated New York labor law the federal Fair Labor Standards Act.

The lawsuit also alleged violations of overtime and minimum-wage standards, but the bulk of the case focused on a “service/gratuity” charge that the hotel charged guests and restaurant patrons, according to court papers.

According to court documents, the hotel insisted that it properly distributed all of the service-charge money to employees. The dispute centered on which employees were paid, according to the documents.

The plaintiffs contended that management employees who were not legally entitled to a share of the payments nonetheless received them, while the hotel countered that that all of the people it paid were entitled to a share of the money.

For more:  http://thedailystar.com/localnews/x1746084500/Otesaga-pays-550-000-to-settle-lawsuit

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Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management