Category Archives: Training

Hospitality Industry Property Risks: Florida Hotel Room Fire Caused "Box On Top Of Stove Burner"; Water Damage From Sprinkler System

“…someone had placed a box on top of a stove burner and then turned the burner on. The box caught fire and activated the hotel’s sprinkler system, which put out the fire…the sprinkler system drenched the top floor and water seeped down to the first floor, which could have compromised the hotel’s electrical systems…”

The Value Place hotel at the corner of Racetrack Road and Eglin Parkway was evacuated after a small fire started in a room on the second floor about 4:20 p.m. Monday.

Firefighters made sure everyone was cleared out of the hotel and then stayed at the scene until about 9 p.m. to make sure there were no immediate electrical issues that could start another fire.

The hotel’s occupants were sent to other hotels in the area overnight until an electrician can come today to make sure the electrical system is working properly.

Most of the damages the hotel sustained were from the sprinkler water, although there was a small amount of damage from the fire, Wagner said.

For more:  http://www.nwfdailynews.com/local-news/hotel-evacuated-after-fire-1.55276

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Filed under Claims, Fire, Insurance, Maintenance, Training

Hospitality Industry Employment Risks: Hotel "Off-Duty Access Policies" Cannot Be At "Management Unlimited Discretion" According To National Labor Relations Board (NRLB) Decision

In a 2-1 decision, the (National Labor Relations Board) struck down a Marriott property’s policy prohibiting off-duty employees from accessing the hotel property without a manager’s approval. In doing so, the board evaluated Marriott’s rule in light of well-established case law dating back four decades.

Many hotels maintain off-duty access policies that limit but do not prohibit employees from accessing the hotel property during off-duty hours. The policy might require an employee to obtain advance permission from management and/or limit access to employer-sponsored events. Such a policy seems reasonable.

The hotel or resort might want to grant access to employees as an employee benefit. Employee discounts, access to restaurants, golf courses, spa facilities and ski slopes, for example, are valuable employee benefits. Of course, the hotel needs to balance legitimate business concerns, such as maintaining the security of its premises and guests, as well as assuring its guests have ready access to facilities.

Under that 1976 case, the NLRB established a three-part test for whether off-duty access restrictions are legal. For an off-duty access rule to be valid under that test, the policy must:

1) limit access only to the interior of the facility and other working areas;

2) be clearly disseminated to employees; and

3) apply to any off-duty employee seeking access for any reason and not just those engaging in union activity.

In the Marriott case, issued 28 September, the board held that because the rule was not a uniform ban on access but instead gave management unlimited discretion to determine when to permit access, it could lead employees to believe they could not engage in union organizing or other protected activity without a manager’s approval. The board struck down the rule as unlawful and said a “narrow, extremely specific” off-duty access rule might be deemed valid. However, it provided no guidance as to what type of rule is acceptable.

This decision puts hospitality employers in an untenable position. The hotel has one of three options:

1) adopt a policy limiting all off-duty access, even for legitimate reasons such as picking up a paycheck or attending special events;

2) grant employees access to the property without any restrictions; or

3) prepare a policy with narrow exceptions for special circumstances and hope the policy survives legal scrutiny.

For more:  http://www.hotelnewsnow.com/Articles.aspx/9417/NLRBs-decisions-impacts-hotel-policies

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

Hospitality Industry Legal Risks: Colorado-Based Restaurant Group Will Defend Itself Against Class-Action Lawsuit Alleging Overtime Violations; Company Maintains That Managerial Salaried Employees Are "Apprentices"

“…The class-action complaint…says Chipotle misclassified its “apprentices” as managerial salaried employees who don’t qualify for overtime pay. The suit contends apprentices earn salaries of $40,000 but frequently work more than 40 hours a week and often perform the duties of hourly workers, including cooking and filling orders…”

Chipotle Mexican Grill Inc. says a lawsuit alleging the Colorado- based company has failed to pay overtime to hundreds of employees is frivolous.

Chipotle spokesman Chris Arnold said the restaurant chain carefully defines the roles in its restaurants and that the apprentice position is “clearly” a managerial role ineligible for overtime, under state and federal laws.

The lawsuit seeks back pay and damages. Chipotle has about 1,350 restaurants.

For more:  http://www.insurancejournal.com/news/west/2012/11/19/271081.htm

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

Hospitality Industry Legal Risks: Michigan Hotel Sued By EEOC For "Terminating Pregnant Housekeeper"; Employers May Not Exclude Pregnant Women Based On Their "Concerns About Safety Of Unborn Child"

“…Ramin fired a housekeeper shortly after it learned of her pregnancy. The company stated that it could not allow her to continue to work as a housekeeper because of the potential harm to the development of her baby…”

The U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit today charging that Ramin, Inc., a Comfort Inn & Suites franchise owner in Taylor, Mich., violated federal law when it terminated a pregnant housekeeper because of her pregnancy.

Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, protects female employees against discrimination based on pregnancy, and the Supreme Court has expressly rejected the notion that an employer may exclude pregnant women from employment based on its own concerns about the safety of the unborn child.

The EEOC seeks injunctive relief to prevent Ramin from discriminating against pregnant employees or applicants in the future, as well as monetary relief on behalf of the victim.  The EEOC filed suit after first attempting to settle the case through its conciliation process.

“Pregnancy discrimination is rarely subtle,” said Lauren Gibbs Burstein, attorney in the EEOC’s Detroit Field Office.  “Employers may not bar pregnant employees from work because of outdated myths or stereotypes.  The EEOC will vigorously defend the rights of pregnant workers to provide for their families by remaining employed.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-13-12c.cfm

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

Hospitality Industry Employee Risks: California Hotel Settles "Sexual Harassment And Retaliation Lawsuit" With EEOC For $195,000

In 2010, a female employee filed the EEOC charge of discrimination alleging that a male supervisor made sexual comments and referenced an image of a sexual nature.  The female employee further alleged that upon reporting the sexual harassment, the male supervisor retaliated against her by issuing written discipline and treating her differently.

DNC Parks & Resorts at Tenaya, Inc. which operates Tenaya Lodge, a hotel and resort near Yosemite National Park in California, will pay $195,000 and furnish other relief to settle a federal charge of sexual harassment and retaliation filed with the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

Following an EEOC investigation, the director of EEOC’s Fresno Local Office determined that there was reasonable cause to believe that the female employee was sexually harassed due to her gender, female, and that she was subjected to retaliation for reporting the harassment, a violation of Title VII of the Civil Rights Act.  The EEOC also found reasonable cause to believe that a class of other female employees was also sexually harassed due to gender.  Tenaya Lodge denied the allegations of sexual harassment and retaliation, and the company did not admit to liability while agreeing to settle the matter.

Following the EEOC’s determination, the EEOC entered into a one-year conciliation agreement with Tenaya Lodge and the female employee in question.  The agreement effectively settles the case administratively, thereby avoiding litigation.  The agreement provides for $100,000 in monetary relief for the female employee who filed the EEOC charge.  An additional $95,000 is designated as a class fund for eligible claimants who also encountered sexual harassment and/or retaliation while working at Tenaya Lodge.

Aside from the monetary relief, Tenaya Lodge will provide equal employment opportunity training for all current employees and, thereafter, for all new hires in the language that the employee understands, along with additional training for managerial and human resources staff on how to deal with discrimination, harassment and retaliation.  Tenaya Lodge also agreed to post a notice about the settlement in English and Spanish; to report future instances of discrimination to the EEOC; and to publicize the settlement via press release.

Workers have the right to report sexual harassment or other forms discrimination on the job without negative repercussions,” said Melissa Barrios, director of the EEOC’s Fresno Local Office.  “We commend Tenaya Lodge for working with the Commission to resolve this matter and for agreeing to implement measures to protect their employees from harassment, discrimination and retaliation.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-7-12.cfm

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

Hospitality Industry Legal Risks: Oklahoma Restaurant Group Sued By Labor Department For Violating Fair Labor Standards Act; Fixed Salaries Without Overtime And Tips Alleged

“…FLSA-covered employees, who in some cases worked as many as 72 hours in a week, were paid a fixed salary without overtime compensation for hours beyond 40 in a week. In addition to overtime violations, this practice resulted in minimum wage violations because employees did not always receive at least the federal minimum wage of $7.25 per hour. Investigators also found that wait personnel were required to turn their tips over to management at the end of every shift, which caused their pay to fall below the minimum wage. Finally, the employer did not keep proper records as required…”

The U.S. Department of Labor has filed a lawsuit against Tulsa-based El Tequila LLC and owner Carlos Aguirre after an investigation by the department’s Wage and Hour Division found that the defendants violated the Fair Labor Standards Act’s minimum wage, overtime and record-keeping provisions. These violations resulted in a total of approximately $1 million in unpaid wages owed to 221 kitchen and wait staff, hosts and bussers at four restaurant locations.

The suit was filed in the Northern District of Oklahoma, Tulsa Division, and it seeks to recover the full amount of back wages for the employees as well as an injunction prohibiting future violations of the FLSA.

“The restaurant industry employs some of our country’s lowest-paid, most vulnerable workers,” said Secretary of Labor Hilda L. Solis. “When violations of the FLSA are discovered, the Labor Department will take appropriate action to ensure workers receive the wages they have earned and to which they are legally entitled.”

Violations were found at the company’s restaurants on Memorial Drive and South Howard Avenue in Tulsa, East 86nd Street North in Owasso and North Elm Place in Broken Arrow.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates for hours worked beyond 40 per week. In accordance with the FLSA, an employer of a tipped employee is required to pay no less than $2.13 an hour in direct wages provided that amount plus the tips received equals at least the federal minimum wage of $7.25 an hour. If an employee’s tips combined with the employer’s direct wages do not equal the minimum wage, the employer must make up the difference. Employers are required to provide employees notice of the FLSA’s tip credit provisions, to maintain accurate time and payroll records, and to comply with the act’s restrictions applying to workers under age 18.

For more: http://www.dol.gov/opa/media/press/whd/WHD20122050.htm#.UIqdN4b0_h8

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

Hospitality Industry Property Risks: North Carolina Hotel Suffers Extensive Water Damage After "Prank Phone Call" Causes Guest To Activate Fire Sprinkler

“…The caller told the guest who answered to activate the fire sprinkler in the room because there was a gas leak. After the guest followed the directions, the caller hung up…”

For the second time this year, a Leland hotel has suffered extensive damage because of a prank phone call. Leland Police say early Sunday morning, someone called the front desk of the Best Western off US 17 and asked to be transferred to a room.

The same thing happened to another guest in the hotel back in May. That prank flooded the first two floors of the hotel and caused thousands of dollars in damage.

Leland Police detectives believe this prank may be only one of many nationwide, as was the case back in the spring. Detectives are investigating any and all leads and plan on possible collaboration with federal officials to aid in this investigation.

For more:  http://www.wwaytv3.com/2012/10/22/leland-hotel-damaged-prank-call-for-second-time

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

Hospitality Industry Security Risk Management: Hotels Face Increased Risk Of "Guestroom Burglaries" From Electronic Door Lock Hacking Devices

By Todd Seiders, CLSD

http://www.petrarisksolutions.com/

As many of you may have heard, the computer “hacking” community has made a small device that can open Onity hotel guestroom door locks. It costs approximately $50 in readily available electronic parts, and the device has been concealed in an iPhone case and a Dry Erase marking pen body (yes, the felt tipped dry erase pen used on whiteboards).

The hacking device plugs into the door locks, and opens the door. It shows up on the lock readout as a “portable programmer” use, but no serial number for the portable programmer is noted.

**We are now experiencing actual guestroom burglaries and guest thefts by use of these devices in Texas. Multiple rooms have been hit at several hotels. An arrest was made in Houston on some of these burglaries, so I hope to have additional info on that very soon.

**I am also receiving reports from hotels in Florida that a similar “hacker” has been seen carrying a laptop computer and using a key card (possibly connected to the laptop) to open guestroom door locks. There have been several guestroom burglaries and actual witnesses who saw the suspect with his laptop, using a key card to access locked guestrooms.

Please TRAIN and notify your hotel staff that these burglaries are spreading across the country. Hotel staff should be vigilant while they are on the guest floors and paying attention to guests walking through hallways. Take time to watch guests walking through your hallways to ensure they are going to a room and entering it. Be very suspicious of someone carrying a laptop or small bag wandering the hallways. Greet guests and ask them if they need assistance. If they appear nervous, or cannot tell you what room they are looking for, escort them to the lobby, or escort them to where a security camera is, so you can get a picture of them. If they leave the hotel, follow them and try and write down a vehicle license plate on their vehicle. Your hotel staff has to be more active on your guest floors when they see people walking around.

Onity locks is not accepting liability for the defect in their hotel locks, and have offered a software fix for the problem. Onity is charging hotels to supply the fix.

I’m sorry to say that this burglary issue will only get bigger as the hackers share their tales and their build your own device details in the future.

I’ll keep you posted on this topic…..

Todd Seiders, CLSD
Director of Risk Management

Email: ToddS@PetraRiskSolutions.com
Phone: (800) 466-8951 ext 207

Direct: (562) 623-0976
Fax: (800) 494-6829
Lic #0817715

 

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

Hospitality Industry Legal Risks: Florida-Based Restaurant Group Faces Five Separate "Federal Labor Law Class-Action Lawsuits"; Employees Required To Work "Off The Clock" And Skip Required Breaks

“…Lawsuits filed by the Mexican-American Legal and Education Fund accuse Darden Restaurants—which owns the Capital Grille, Red Lobster and Olive Garden chains—of violating state and federal labor laws…the suits claim the restaurants regularly ask employees to work off the clock, skip legally required breaks and report to work when sick…”

The world’s largest full-service restaurant ownership company faces five separate class-action lawsuits filed by a group that works to protect restaurant workers’ rights.

The litigation began as a single class-action lawsuit filed in federal court in Chicago, with state class-action claims covering workers in Illinois, as well as California, Florida, Maryland and New York. Eventually, the lawsuit was severed into five jurisdictions due to the large size of the classes and the complexity of the various state claims. Five regional U.S. District Courts will hear the cases.

The lawsuits were initiated by the Restaurant Opportunities Cen­­ters United, which seeks to improve wages and working conditions for low-wage restaurant workers.

For more:  http://www.businessmanagementdaily.com/33010/worker-advocates-cook-up-five-suits-against-restaurant-group

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

Hospitality Industry Fire Safety Risks: South Carolina Hotels Implement "Preventative Maintenance" Program Including Housekeeping Checking Smoke Detectors After Guests Depart

“…the resort says it follows a detailed preventative maintenance program with a 300 item checklist, ensuring that everything from electric outlets to appliances inside guest rooms are safe to use…upon the departure of each guest, housekeeping is instructed to check the smoke detector for safety to make sure it’s still in working condition…”

Studies show that working smoke detectors cut your chance of dying in a fire by half.

When it comes to hotel fire safety, Springmaid Beach Resort on Ocean Blvd learned just how important smoke detectors are, after a small electrical fire broke out in the boiler room this past summer.

“We had to clear all those rooms out of people that were right around it and move them to a different property,” says Donald Hovis, the marketing manager for the establishment.

It’s a safety measure more hotels are starting to do. In Georgetown, the fire department has teamed up with hotels requiring cleaning staff to check smoke detectors after each guest checks out of the room. The staff also leaves a card stating the test has been done for the next occupant to see.

While Myrtle Beach doesn’t require it, the fire department says it’s been working with hotels for years on getting housekeeping to check the devices, and the fire marshal says he’s confident Grand Strand hotels are ensuring guests’ safety.

Several hotels we checked with along Ocean Boulevard say they check them regularly. Hovis says following this summer’s small fire, they learned another valuable lesson.

For more:  http://www.wmbfnews.com/story/19806893/grand-strand-hotels-reveal-fire-safety-plan

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