Tag Archives: Contracts

by | February 7, 2012 · 7:41 am

Hospitality Industry Employee Risks: Alaska Hotel Operator Ordered By Federal Judge To "Restore Terms And Conditions Of Employment" Prior To 2009 Union Negotiation Stoppage

 “…The injunction comes after a three-year legal battle. It requires the Sheraton take steps to restore the terms and conditions of employment as they existed prior to the hotel’s decision to stop union negotiations in 2009…”

Anchorage hotel workers are celebrating after a federal judge issued a preliminary injunction against Remington Hospitality, the Texas-based operator of the city’s Sheraton Hotel.

Fay Gavin, a banquet server with 24 years with the Sheraton says she joined the lawsuit after management started doing things like cutting lunch breaks, increasing workload and giving away hours to temp workers.   The injunction, she says, is a step in the right direction.

“With this injunction we’re going to get our seniority back. With seniority, hopefully some of us will have an income again. And then down the road, the fired employees will be coming back, we hope to get back and get a contract, a fair contract and have respect again,” Gavin said.

For more:  http://www.alaskapublic.org/2012/02/06/judge-issues-preliminary-injunction-against-sheraton-hotel-operator/

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by | December 23, 2011 · 6:38 am

Hospitality Industry Employment Risks: California Hotels Must Have Comprehensive Corporate Policies To "Manage" Independent Contractors To Avoid "Steep Penalties" For "Willfully Misclassifying Employees"

On October 9, 2011, Governor Jerry Brown signed California Senate Bill 459 (“SB 459”), which adds sections 226.8 and 2753 to the California Labor Code. SB 459, effective January 1, 2012, imposes steep penalties on employers who willfully misclassify employees.

In light of federal initiatives and California’s enactment of SB 459, hospitality employers should consider taking various steps to evaluate their existing independent contractor relationships:

  • Develop and publish a corporate policy on the engagement of independent contractors and the management of those relationships. As part of this policy, require that approval be obtained from a knowledgeable employee before any independent contractor relationship is established.
  • Train employees who manage independent contractor agreements as to how to work with independent contractor relationships.
  • Ensure that the company has a well-written independent contractor agreement for each contractor, that it is accurate, complete, and individually negotiated.
  • Audit the company’s independent contractor relationships, including a review of any past decisions or determinations concerning independent contractor status.
  • Obtain a written legal opinion from counsel regarding the appropriateness of the classification of workers as independent contractors, based on counsel’s understanding of the specific factual situations at issue.

For more:  http://www.seyfarth.com/publications/Five-Key-Labor-And-Employment-Issues-Hospitality-Employers-Need-To-Be-Aware-Of

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by | June 26, 2011 · 5:59 pm

Hospitality Industry Employee Risks: Hotel Management Should Use Employment Contracts Which Are "At Will", Do Not Discriminate And Define Scope Of Employment; Comprehensive Insurance Should Be In Place At All Times

Hotel Management and owners should set up uniform employment contracts, which:

  • Do not discriminate against people based on any of the protected classes as defined by federal or state law;
  • Define the scope of the employment;
  • Say if the employment is for a term or “at will”;
  • Assign the pre-corporate formation intellectual property to the company;
  • Assign all subsequently created intellectual property to the company; and
  • Protect the corporate intellectual property from disclosure.

The last two categories of protecting intellectual property of the company can be accomplished by drafting non-disclosure agreements, and Proprietary Invention Assignment Agreements.

Insurance – Getting insurance for your company is a bet worth taking, given the potential unpleasant surprises of not being prepared. Again, your needs will vary depending on your company, but among the standard offerings are:

  • Comprehensive General Liability Policies (“CGL”) – A CGL policy is usually geared towards protecting a company from personal injury;
  • Directors and Officers (“D&O”) Insurance – D&O insurance may cover the wrongful acts of the officers and directors of a company;
  • Advertising Injury Insurance – Insurance that covers defamation, invasion of privacy, copyright infringement and other intellectual property injuries. (The advertising injury is usually a part of a larger policy, like a CGL, and not a policy onto itself.); and
  • Employment Practices Liability Insurance (“EPLI”) – The EPLI is a specialized insurance policy protecting companies against employment lawsuits.

For more:  http://venturebeat.com/2011/06/27/4-legal-pitfalls-startup-owners-must-face/

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

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