In the second episode of Hospitality Law Insider, Stephen Barth covers some essential items to consider when adapting your travel risk plan to meet duty of care obligations. Learn more about how to deal with medical issues, evacuation considerations, and civil unrest.
Hospitality Industry Legal Risks: California Hotel Employee Files “Racial Discrimination And Harassment” Lawsuit; Painter “Unjustly Fired”, Exposed To Unsafe Working Conditions
“…The suit claims (the plaintiff) was unjustly fired from his position after he was instructed to complete tasks typically subcontracted to outside vendors. The court filing also claims two of the hotel’s buildings had serious water damage and mold issues, but management failed to properly train employees or equip them with the right safety equipment, exposing Tobin to unsafe working conditions…”
Ronald Tobin, a former employee at Fess Parker DoubleTree Hilton, is suing the joint resort company and three of its supervisors for alleged discrimination and unfair business practices while he worked there as a painter for nearly three years.
Tobin, who’s African-American, claims he was subjected to discrimination and harassment at the DoubleTree because of his race, and that the human resources department neglected to investigate or address his complaints. During an event at the hotel, the lawsuit reads, one of Tobin’s supervisors talked about the chicken and watermelon being served, and used the phrases “you people†and “your food.†“[The supervisor] continued to state that he does not know why African-Americans refer to themselves that way when white people do not say ‘Caucasian-Americans,’†the filing reads. The lawsuit also states another employee regularly used the “n-word†without being reprimanded.
For more:Â http://independent.com/news/2013/nov/21/discrimination-doubletree/
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership
Hospitality Industry Legal Risks: California Hotels Settle Federal “Wage Violation” Investigation For $60,000; Management Used Separate Payrolls For 53 Workers To Avoid Overtime Pay
Investigators determined that Miracle Springs Resort and Spa, and the nearby Desert Hot Springs Spa and Hotel, were under the same management, but they recorded employee hours on separate payrolls. When the affected employees’ hours were combined, the hours often totaled more than 40 per week, entitling the employees to overtime compensation for hours worked beyond 40 per week. Additionally, the employer would automatically deduct a 30-minute lunch break from some employees’ work hours, even when employees did not take the break.
The hotel Miracle Springs Resort and Spa of Desert Hot Springs has agreed to pay $59,790 in back wages to 53 employees, including maintenance and housekeeping employees, following an investigation by the U.S. Department of Labor’s Wage and Hour Division. The investigation found violations of the overtime provision of the Fair Labor Standards Act.
“Hotel owners and operators must ensure that their employees are properly compensated for all work hours,†said Kenneth Morrison, director of the Wage and Hour Division’s San Diego District Office. “We are pleased that these workers will be paid their rightful overtime wages and that the employer has agreed to make the appropriate changes to prevent future FLSA violations.â€
The employer, along with paying the full back wages to the affected employees, will maintain future FLSA compliance by agreeing to combine the hours for employees who work at both hotel locations. The employer will deduct lunch breaks only when employees take the 30-minute break.
The hotel and motel industry employs many low-wage workers who, due to a lack of knowledge of the law or an unwillingness to exercise their rights, are vulnerable to disparate treatment and labor violations. The Wage and Hour Division is concerned about the noncompliance in this industry and is concentrating its resources on identifying and remedying violations, informing workers of their rights and providing compliance assistance to employers.
For more: http://www.dol.gov/whd/media/press/whdpressVB3.asp?pressdoc=Western/20131118.xml
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership
Hospitality Industry Social Media Solutions: National Hotel And Restaurant Chains Using Twitter To “Attract A More Stable Following”
“…The idea stemmed from a conversation in which the company suggested one of their properties, and turned a Twitter user into a paying customer. In an age when so few people have allegiances to certain companies, Loews are also hoping to attract a more stable following…The chain will launch “social reservations†at 16 of its 19 properties from November 19th, which opens another interesting channel for online users to book their next hotel stay with only a few clicks…”
Following in the wake of a recent tweet-a-coffee initiative from Starbucks, Loews Hotels and Resorts have made the decision to allow social media users to book a room through Twitter.
With 34% of hotel room revenue comes from online and mobile app bookings, the chain is hoping to give people in their 20s and 30s another way to book their stay without having to pick up the phone.
Here’s how the process works: Send a tweet to @Loews_Hotels with the hashtag #BookLoews to show you’re interested, after which a Loews travel planner will join in the conversation. Once all the details are taken care of, the planner will tweet a link to a secure chat conversation where you can process your payment information.
For more:Â http://www.psfk.com/2013/11/twitter-hotel-bookings.html
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Filed under Guest Issues, Management And Ownership, Risk Management, Technology
Hospitality Industry Employment Risks: New Mexico Hotel Settles EEOC “Religious Discrimination” Lawsuit For $100,000; Housekeeper Fired After Refusing To Remove Head Covering
 “…The EEOC lawsuit charged the employer with failing to allow Abdullah to work unless she removed her religious head covering, and fired her when she declined to do so…the consent decree includes: an injunction prohibiting future discriminatory practices; institution of policies and procedures to address religious discrimination and retaliation; training for employees of MCM, and managers and human resource officials of both defendants on religious discrimination; and posting a notice advising employees of their rights under Title VII…”
704 HTL Operating LLC and Investment Corporation of America, doing business as MCM Elegante Hotel in Albuquerque, has agreed to settle a religious discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission for $100,000 and other relief.
The EEOC, in a news release, said the settlement resolves an EEOC lawsuit filed in September for alleged religious discrimination against Safia Abdullah, who was hired for a housekeeping position at the hotel. The hotel owners denied the allegations in the EEOC’s lawsuit and said in court papers they settled the case to avoid the risks and expenses of continued litigation.
For more: http://www.eeoc.gov/eeoc/newsroom/release/11-18-13.cfm
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership, Risk Management, Training
Hospitality Industry Legal Risks: Florida Restaurant Faces Federal “Sexual Harassment Lawsuit”; Manager Created “Hostile Work Environment”, Retaliated Against Two Female Workers
“…(one plaintiff)Â worked at the restaurant from 1999 to February of 2012 and she complained to the restaurant’s owner about the manager’s use of “racial slurs in the workplace”…The manager also directed racist “pet names” of his own creation toward her…The lawsuit charges the manager used derogatory terms and slurs as part of a “vicious regime of racial and sexual harassment” at the restaurant on Canal Street, and it says “no effective action was taken to stop it.”
Two former employees of a McDonald’s restaurant in Mulberry have filed a federal lawsuit, accusing a manager of creating a hostile work environment. The women allege they were retaliated against after making complaints known to the restaurant’s owner. Cowles’ hours were drastically reduced, and she was left with “no choice” but to quit her job when the manager’s behavior continued, the lawsuit states.
Potts went on maternity leave, and when she attempted to return to work, she was informed “there was no job for her, despite the nearly perpetual turnover of employees at the restaurant,” according to the lawsuit.
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Filed under Employment Practices Liability, Labor Issues, Liability, Management And Ownership
Hospitality Industry Wireless Technology: Hotels Offered Free Wi-Fi At 64% Of Properties In 2013 With Guests Expecting Speeds Up To 5 Mbps
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November 16, 2013 · 11:34 amHospitality Industry Employment Risks: California Restaurants Fined More Than $1.9 Million For “Wage Theft Violationsâ€; 47 Workers Paid Cash, No Minimum Wage Or Overtime
“…Some of the workers were forced to sign timecards containing falsified information stating they had only worked between five and six hours each day, the agency said. Others were paid in cash with no information on the total hours worked, rate of pay or deductions provided…The 47 workers are due $1,086,436 in unpaid minimum wages, $376,640 in unpaid overtime and $153,582 for no meal period premiums, the agency said. In addition, a total of $189,250 in civil penalties were assessed for wage violations…”
State labor regulators fined two Ukiah restaurants more than $1.9 million Thursday for alleged wage theft violations over three years. The violations at Walter Cafe and Ruen Tong Thai Cuisine involved 47 workers and included overlong workdays, failure to pay overtime and the forced falsification of timecards.
The fine “is one of the larger audits for the restaurant industry,†said Hennessy. The investigation is ongoing, she added, leaving open the possibility of additional penalties. Ritdet and Walter are being held both individually and jointly liable for the alleged Labor Code violations.
Employees at their two restaurants regularly worked at least 11.5 hours a day, six or seven days a week, with no meal breaks, according to a Labor Standards Enforcement division news release. The restaurants did not pay minimum wage or overtime, in violation of the law, according to the agency.
The investigation started in June 2012 after an anonymous complaint was filed. It was conducted by state and federal labor regulators and examined employment practices at the restaurants from June 19, 2010, through June 15, 2013.
For more: http://www.pressdemocrat.com/article/20131114/articles/131119756
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Filed under Employment Practices Liability, Liability, Management And Ownership, Risk Management, Theft
Hospitality Industry Insurance Risks: Workers’ Compensation Fraud Accounts For 25% Of All Insurance Fraud, Costing $5 Billion Annually
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November 14, 2013 · 9:05 amHospitality Industry Legal Risks: New York Restaurant Settles Federal “ADA Disabilities Compliance” Lawsuit For $10,000 Civil Penalty, Fix Structural Issues Including Takeout Counter, Pathways And Accessible Toilets
“…the U.S. Attorney for the Southern District of New York, announced the filing and settlement of the lawsuit, which was part of the Manhattan Restaurants ADA Compliance Initiative. The Initiative uses the 2011 Zagat Guide’s “most popular†list to probe busy hubs for ADA compliance…The Upper West Side restaurant’s shortcomings include doors that are too tough to open, narrow pathways between tables, and too high a takeout counter. The Theatre District got slammed for its high coat check counter and lack of a raised-character sign near the restroom door. Neither restaurant had a fully accessible toilet…”
The entrances (of Carmine’s Italian Restaurant) top a long list of tweaks that will be made by the chain’s two Manhattan locations as the result of a settlement in a lawsuit filed today by the U.S. Attorney’s office. The suit cited several violations of the Americans With Disabilities Act, which also comes with a $10,000 civil penalty.
According to the suit filed by Preet Bharara, U.S. Attorney for the Southern District of New York, each Carmine’s has to shape up to comply with ADA regulations. Most small changes must be made within 90 days. Larger structural issues – like the Upper West Side location’s tight bathroom hallway – aren’t due until November 1, 2014.
Read more at http://observer.com/2013/11/prego-carmines-settles-suit-over-accessibility-issues/#ixzz2kXxcgZK1
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Filed under Guest Issues, Liability, Maintenance, Management And Ownership, Risk Management