Category Archives: Training

Hospitality Industry Legal Risks: Texas Club Owner Ordered To Pay $10.5 Million To Family Of Woman Killed By “Monster Truck” In Parking Lot; “Dram Shop” Laws Hold Company Liable For Over-Serving Alcohol To Driver

“…(the plaintiff) sued Crutchfield and High Expectations Hospitality, the corporate name for Spearmint Rhino, pointing to state “dram shop” laws that allow a business to be held liable if it serves alcohol to someone who Alcohol Drink Responsiblywas clearly intoxicated and ended up causing harm to others…”

The parents of a 23-year-old woman killed by a monster truck outside a gentlemen’s club have won a $10.5 million civil verdict against the driver and the club for serving him alcohol. Kasey McKenzie died after she was run over in March 2011 by a pickup truck elevated on monster tires in the parking lot of the Spearmint Rhino club in Dallas. The driver of the truck, Eric Crutchfield, was drunk and has since pleaded guilty to manslaughter.

A Dallas civil jury on Tuesday awarded $4 million to the parents for mental anguish and $3.5 million for loss of companionship, along with about $3 million in other damages and expenses.

Michael Schmidt, an attorney for McKenzie’s parents, said the club served Crutchfield 10 or more drinks and shots on the night of McKenzie’s death. “This case basically is addressing a problem that we have, certainly in Dallas, of irresponsible establishments over-serving patrons and violating the law,” Schmidt said.

Schmidt said McKenzie was hit by Crutchfield’s truck while walking in the parking lot after 2 a.m. on March 17, 2011.

According to a police report, Crutchfield “had no idea he had run over” McKenzie. A blood test after the incident showed his blood-alcohol level was 0.18 percent, more than twice the legal limit.

For more:  http://www.azcentral.com/news/nationworld/free/20130220texas-monster-truck-death-lawsuit-verdict.html

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

Hospitality Industry Legal Risks: New York Restaurants Now “Randomly Targeted” For Wage Violations By Labor Department; “Liquidated Damages” Can Double Back Wages Owed

“…officials at the local U.S. Department of Labor office say that in prior years, they relied on employee tips to launch investigations… the random inspections now drive as many investigations as employee Hospitality Industry Wage Violation Lawsuitscomplaints…those probes increasingly turned up egregious violations including kitchen workers being paid as little as $2 an hour…Starting in 2011, the office launched a restaurant initiative, focusing on a different segment each year. The initial focus was pizza and pasta restaurants. Last year it was diners; this year, Asian restaurants…”

The U.S. Department of Labor is targeting Long Island‘s largest private-sector employer, the restaurant industry, charging it with widespread minimum-wage and overtime violations.

The department has launched a campaign of random inspections with growing impact: In the 12 months through Sept. 30, it obtained court orders against 89 employers for such violations on the Island — about half of the roughly 180 orders obtained in all the United States by the Wage and Hour Division of the Department of Labor, according to Irv Miljoner, the Westbury-based district director for Long Island. Of the Island employers being sanctioned, 66 are restaurants.

As part of the stepped-up litigation, local Labor officials are increasingly seeking liquidated damages, which double the back wages owed. “Before this we would just go in and we would get back wages for a two-year period, and they would pay it and we’re done,” said Richard Mormile, assistant director of the Long Island office. “We have upped those consequences.”

Overall in fiscal year 2012, the office’s investigators found that local employers, mostly restaurants and diners, owed $8.6 million in back wages, up 28 percent from $6.7 million they uncovered the year before.

This year’s effort has already resulted in one of the largest settlements ever for the local office. An Asian restaurant chain with two locations on Long Island — Asian Moon, in Garden City and Massapequa Park — and a location in Westchester agreed to a court order requiring it to pay more than $1 million to settle charges that it underpaid 255 employees over three years and altered records to hide the violations. The department’s lawsuit charged that food preparers and dishwashers worked 55 hours a week without being paid overtime.

For more:  http://www.newsday.com/classifieds/jobs/u-s-labor-dept-checks-li-restaurants-for-wage-violations-1.4694410

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

Hospitality Industry Legal Risks: Colorado Hotel And Restaurant Sued By Woman Who “Drank Bleach In A Water Glass”; Lawsuit Seeks $100,000 For “Negligence And Breach Of Implied Warranties Of Merchantability And Wholesomeness Of Food”

“…(plaintiff) suffered serious and continual medical problems, including the inability to eat effectively, persistent acid reflux syndrome, digestive problems and other symptoms…(her) relationship with her husband Hospitality Industry Injury Lawsuitsand her ability to care for her children have been affected…among the claims in the lawsuit are negligence, breach of implied warranties of “merchantability and wholesomeness of food,” loss of consortium and a violation of Colorado’s premises liability statute…”

A Basalt woman is suing the owner and operator of the Viceroy Snowmass, alleging that she was served and drank out of a glass that had bleach in it at the hotel’s Eight K restaurant. The incident happened during brunch in February 2011, according to the lawsuit by Janine and John Reichert. The suit, filed Tuesday in Pitkin County District Court, seeks more than $100,000. It lists Base Village Owner, the hotel’s owner, and Viceroy operator KHM Snowmass as the defendants.

After being seated, a waiter poured water for the Reicherts’ party from a pitcher, wrote their attorney, Alan Feldman of Aspen, in the lawsuit. “Immediately after Janine drank from the glass, she jumped up out of her seat, stating that she had drank chemicals and needed to get to the bathroom as she was going to throw up,” the lawsuit says. “Janine’s throat began to burn and swell up. … [She] raced to the restroom, where she became violently ill.”

John Reichert dipped his finger in her glass and allegedly tasted a bleach solution. The wait staff then cleared all of the glasses from the table and disposed of their contents, Feldman wrote. One Eight K employee allegedly told John Reichert that “it is typical for the water pitchers to be soaked in a solution of bleach for sterilization and that the waiter could have picked up a water jug soaking in this bleach solution, believing it to be drinking water,” Feldman wrote.

However, as Janine Reichert was talking to a poison-control operator, a manager allegedly told her that she had ingested merely the residue from the bleach left on the jug.

For more:  http://www.aspendailynews.com/section/home/156795

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Filed under Claims, Food Illnesses, Guest Issues, Injuries, Insurance, Liability, Maintenance, Training

Hospitality Industry Social Media Management: Hotel Management Must Have Policies In Place To Deal With An “Online Reputation Crisis” Including “Act Quickly, Publish Official Response, Remove Content And Rally Supporters”

Given the rapid-fire pace at which content can spread via social networks, hotels have never been more vulnerable. A seemingly minor issue can quickly escalate into a full-blown crisis, causing serious damage to Hospitality Industry Social Media Managementreputation.

After a power outage at a Texas hotel last summer, a paralyzed American war veteran called the front desk to request help from his room. For reasons not entirely clear, the clerk allegedly laughed at the request and mocked him. The guest got down by throwing his wheelchair and bags down three flights of stairs and sliding down on his backside. Then he went to straight to the media.

The incident incited a public furor that quickly spread to social networks. The hotel, its employees and the entire brand came under attack, with expressions of outrage and calls for a brand-wide boycott. Despite a solid reputation, it seemed nothing the brand could do—issue a refund and a public apology, dismiss the employee, implement staff training—would appease detractors.

  • Be prepared – Given the risks involved, a social media policy with a crisis management component must be a priority. Outline the steps to take in the event of a crisis, the people responsible, and the role social media will play in messaging. Keep a list of emergency contacts at hand, including your social media administrator.
  • Act quickly – When a crisis hits, there’s no time for bureaucracy. You must respond quickly and decisively. But first you must assess what’s at stake. Include senior management in decisions, and if appropriate seek advice from a PR firm or lawyer.
  • Publish an official response -  An official response is a critical step. It should be honest and sincere, should speak to your company’s credentials, and should be authored by a senior executive. Post it to one channel—your website or blog, a video—and direct all inquiries there.
  • Rally supporters – Call on your community of fans to help get your messaging out. Their words will have more impact and reach than official brand messages.
  • Don’t fuel the fire – Buchmeyer tells me of another incident in which a client attempted to quell a spate of angry comments on its Facebook page by deleting them and blocking detractors. This only resulted in escalating the situation. Monitor conversations and respond as appropriate, but resist the urge to sanitize. In some cases it may be better to “go dark” on social media rather than draw attention to the issue and further provoke detractors. This is especially true in the case of a tragedy or natural disaster, when communications should be restricted to community support and keeping guests informed.
  • Get the content removed – Getting damaging content taken down can be challenging, especially if it has spread to multiple channels. Go to the source and ask them to remove it, but don’t be heavy handed. At the same time, appeal to the host site to have it removed. Litigation is an option if the content is libelous, but use it as a last resort. Engage in charitable causes and community work that will garner positive content to displace the negative.
  • Reputation management—a company wide function – The media loves a scandal, and exposés of security, sanitation and safety issues are popular topics that can be highly damaging to business. Employees must be aware that social media has raised the stakes. The consequences of guest mistreatment, negligence and lapses in quality, service and security can be severe. Management must play its part by providing the training, empowerment and support necessary to ensure standards are understood and upheld.

For more:  http://www.hospitalitynet.org/news/154000320/4059521.html

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Filed under Guest Issues, Labor Issues, Liability, Management And Ownership, Privacy, Risk Management, Technology, Training

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 Health Risks: “Norovirus Food Poisoning” Class-Action Lawsuit Filed Against Wyoming Restaurant; Health Department Report Confirms Outbreak Source

“…according to the WDOH, 31 employees who worked at the Golden Corral restaurant were infected with norovirus while working…the lawsuit was filed on behalf of (those who) purchased food or drink at the Golden Norovirus OutbreakCorral Casper restaurant between November 20, 2012 and December 13, 2012 and (were exposed to) diarrhea and vomiting from multiple employees of the Golden Corral…”

Customers of the Casper, Wyoming Golden Corral filed a class action lawsuit against the restaurant Friday, alleging they were part of a norovirus food poisoning outbreak that was traced to food served at the restaurant in December. The lawsuit was filed in Federal District Court in Wyoming (Case Number 13CV024J) by Jason Ochs of The Ochs Law Firm and William Marler of Marler Clark.

According to a Wyoming Department of Health (WDOH) report, at least 305 patrons of the Casper Golden Corral restaurant became ill with norovirus infections after eating at the restaurant between November 17, 2012 and December 19, 2012. Norovirus infection causes nausea, diarrhea and/or vomiting and is highly infectious. Investigators from the Wyoming Department of Health Infectious Disease Epidemiology Program and Casper-Natrona County Health Department stated in their report that they were not able to determine exactly how norovirus was introduced to the restaurant, but said ill food-handlers could have contributed to the spread of norovirus among Golden Corral patrons.

The complaint states that named plaintiff Paul Feyhl, a Casper resident, ate at the Golden Corral restaurant on December 8, 2012 and subsequently fell ill with norovirus. According to court documents, the lawsuit was filed on behalf of Mr. Feyhl and “others similarly situated” who purchased food or drink at the Golden Corral Casper restaurant between November 20, 2012 and December 13, 2012 and whose exposure to norovirus was caused by:

1.    Exposure from diarrhea and vomiting from multiple employees of the Golden Corral
2.    Consumption of contaminated food and drink prepared by Golden Corral employees
3.    Exposure to, or close proximity with, persons who ate food or drink at the Golden Corral restaurant or were exposed to the restaurant’s infected employees.

For more:  http://www.prweb.com/releases/2013/2/prweb10414517.htm

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Filed under Food Illnesses, Guest Issues, Health, Insurance, Labor Issues, Liability, Management And Ownership, Training

Hospitality Industry Safety Risks: Wisconsin Hotel Guest Files “Personal Injury Lawsuit” After Being Hit By Rider On Hotel’s Waterslide

“…(plaintiff) was at the hotel waterpark and went down the “Cyclone” waterslide. When he stood up in the pool below the slide’s trough, the complaint states, he was hit by another rider. The collision caused him to fall Hospitality Industry Injury Lawsuitsbackward and sideways, striking his head and neck on the slide’s trough…”

A Waukesha man has filed suit against Country Springs Hotel, saying it was negligent when it allowed a rider to travel down a waterslide after him, resulting in a collision. Robert and Dale Flowers, a married couple residing in Avalon Square Senior Housing in downtown Waukesha, filed a personal injury lawsuit Wednesday in Waukesha County Circuit Court against Country Springs Hotel. The couple is seeking unspecified damages from the incident that occurred nearly three years ago, according to the complaint.

The lawsuit claims Country Springs Hotel did not have a video feed available to employees to tell them when a rider cleared the slide. Instead, they have one employee at the top of the waterslide telling riders when to go and another at the bottom of the slide.

Robert Flowers received “pain, suffering and disability, hospital expense, medical expense, loss of earnings and earning capacity,” according to the lawsuit. His wife, Dale, “sustained the loss of services, society and companionship of her husband,” according to the complaint.

For more:  http://waukesha.patch.com/articles/waterslide-collision-at-country-springs-hotel-results-in-personal-injury-lawsuit

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Filed under Claims, Guest Issues, Injuries, Insurance, Labor Issues, Liability, Maintenance, Training

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 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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Hospitality Industry Legal Risks: Michigan Restaurant Group Settles “Class-Action Lawsuit” Alleging “False Advertising Of Halal Food Items”

“…(plaintiff’s) attorney alleged that after the restaurant ran out of Halal chicken, it sold non-Halal chicken…an investigation found that the restaurant had sold non-Halal food masquerading as Halal food “on Hospitality Industry Class Action Lawsuitsmany occasions.” The two filed a class action lawsuit in Wayne County Circuit Court in November 2011…”

McDonald’s and one of its franchises agreed to a $700,000 settlement in a lawsuit claiming that it falsely advertised some of its food as halal. Ahmed Ahmed, a Muslim man from Dearborn Heights, alleged that the chicken sandwich he ordered from the McDonald’s on Ford Road in Dearborn in September 2011 did not meet Islamic dietary standards, despite the franchise’s advertisements that it sells Halal chicken.

McDonald’s and Finley’s Management Co, which owns the franchise, agreed on January 18 to pay the $700,000, which will be split between Ahmed, his lawyers, a health clinic in Detroit and the Arab American National Museum in Dearborn. McDonald’s and Finley’s deny any liability, but say the settlement is in their best interest.

For more:  http://michiganjournal.org/2013/01/29/dearborn-mcdonalds-makes-settlement-in-non-halal-chicken-sandwich-lawsuit/

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