Tag Archives: Employees

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 | December 19, 2011 · 6:14 am

Hospitality Industry Employee Risks: Tennessee Hotels Fined By Department Of Labor For "Fair Labor Standards Act" Minimum Wage Violations

“…Violations included charging excessive room and board to employees who also lived at a property or paying housekeepers by the room cleaned, resulting in a person’s pay falling below the $7.25 minimumwage; paying “straight time” for all hours worked, including overtime; and failing to pay for all hours worked by temporary employees…”

The U.S. Department of Labor said Wednesday that 35 franchised hotels and motels, including 11 in Middle Tennessee, violated minimum wage, overtime and other labor laws during the fiscal year ended Sept. 30. The agency said it fined those businesses a cumulative $14,552 and recovered more than $173,000 in wages owed to 283 employees.

Some hotel and motel operators also misclassified employees as independent contractors, denying them legal protections under federal labor laws, the agency said.

The citations and fines are part of a multiyear enforcement initiative focusing on Tennessee’s hotel and motel industry, in which regulators have “found widespread noncompliance with the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act,” the agency said in a news release.

For more:  http://www.tennessean.com/article/20111215/BUSINESS01/312150046/U-S-Labor-fines-11-Middle-TN-hotels-wage-violations?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

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by | December 3, 2011 · 1:50 am

Hospitality Industry Employee Risks: "Employment Practices Liability Insurance" Policies Can Protect Hotel Owners From Costly Litigation When Using Social Media In Hiring Process

For a price comparatively nominal to the cost of litigation, employers can purchase an employment-practices liability insurance policy (EPLI). An EPLI policy provides protection for the employer from the economic and noneconomic losses resulting from employment-related claims, including but not limited to claims of wrongful termination, discrimination, harassment or retaliation.

  In addition to an employer’s risk-management portfolio for social media, an employer’s overall risk management should include an EPLI policy to protect them from the costly litigation associated with labor and employment.

Employers need to have a solid social-media policy in place. This policy should:

  • Outline what constitutes inappropriate use of social media, from personal use during work hours to the type of content posted, including defamatory language about the company.
  • Address the penalties for disclosure of trade secrets on public pages, in a language and context that can be understood clearly.
  • Address disciplinary action and termination procedures for violation of social-media use in its various forms.

Many hiring professionals and employers’ first stop during the hiring process is social-media outlets to screen applicants. They turn to LinkedIn or Facebook to learn more about an applicant’s education, their friends or even their social behavior.

Sometimes, a candidate is rejected based on content found on the applicant’s social-media pages, which could include inappropriate photos or comments, references to alcohol and substance abuse, discriminatory comments, slanderous statements and/or the sharing of confidential information regarding their previous employer, proof of poor communication skills and exaggeration of their qualifications.

While the above reasons are legitimate cause for concern, and employers advantageously have social media at their disposal to prevent negligent hiring, a business can be at risk for discrimination if accessing social-media sites that contain protected class information not privileged in the normal course of the hiring process.

To mitigate this risk, employers should use outside third parties in their hiring process, including background-verification companies and/or recruiters who document content acquired on social-media sites in the candidate-selection process.

For more:  http://www.propertycasualty360.com/2011/12/01/managing-social-media-risks-a-critical-task-for-20?t=workers-compensation

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by | December 1, 2011 · 7:42 am

Hospitality Industry Employee Risks: Washington DC Hotel Sued By Muslim Employee For Discrimination When He Was "Prohibited From Serving Israeli Delegation" (Video)

[youtube=http://www.youtube.com/watch?v=N-oqj7jsY2o]

The Mandarin Oriental Hotel in DC barred a Muslim employee from serving an Israeli delegation, CNN’s Barbara Starr reports.

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by | November 19, 2011 · 6:22 am

Hospitality Industry Employee Risks: Police Arrest New York Restaurant Waiters Who Were "Equipped With Electronic Skimmers" To Steal Credit Card Information

“… the crooks equipped waiters at Smith & Wollensky, The Capital Grille, Wolfgang’s Steakhouse and JoJo — and at two restaurants outside the city — with electronic skimmers to steal the info from at least 50 customers…”

Waiters at some of New York’s swankiest eateries were part of a criminal crew that stole credit card information to create counterfeit cards — and then racked up some $600,000 in purchases, prosecutors revealed Friday.

Then Jacas used a “network of shoppers” to go on shopping sprees at high-end Manhattan stores like Chanel, Neiman Marcus, Cartier, Hermes of Paris, Bloomingdales, Bergdorf Goodman, Waldmann’s, London Jewelers, Burberry, Jimmy Choo, Lord & Taylor, prosecutors said.

One of them was Gregory Portacio, who infamously dragged a Queens mom to her death in 1980 by grabbing her neck chain and hanging on while an accomplice drove their getaway car down a block.

“Anybody who thinks credit card fraud brings out high class criminals should think again,” said Police Commissioner Ray Kelly, whose men were still searching for the 51-year-old career criminal and sex offender.

The crooks even used the phony American Express cards to refuel at Starbucks and also hit stores in Westchester County, Long Island, Boston, Chicago and Florida.

The ill-gotten goods were then fenced to “complicit customers” for cash, prosecutors said.

Read more: http://www.nydailynews.com/news/crime/smith-wollensky-steakhouse-waiters-busted-600-000-credit-card-scam-article-1.979766#ixzz1eA1lm2Y2

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by | November 14, 2011 · 6:44 am

Hospitality Inudustry Employment Risks: Woman At Florida Staffing Company Convicted Of "Alien Smuggling And Worker Visa Fraud" In Supplying Workers To Hotels

 “…a large temporary labor staffing company based in Orlando, which supplied temporary labor to numerous businesses in the hotel and hospitality industries throughout Florida and the United States…”

“… They also submitted fake hotel contract agreements to conceal their activities and falsely reported that U.S. workers had been hired when they had not…”

A federal jury found a Brazilian woman residing in Orlando guilty of alien smuggling and conspiracy to commit alien smuggling and worker visa fraud on Monday, following an investigation that began with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Rafaela Dutra Toro, 30, faces a maximum penalty of 10 years in federal prison. She was indicted on Jan. 26. Her sentencing hearing has not yet been scheduled.

 “The individuals involved in this case orchestrated a very large and very complex visa fraud ring. They took jobs away from U.S. citizens and others who are legally allowed to work in this country by knowingly employing people who were not authorized to work in the United States,” said Susan McCormick, special agent in charge of HSI in Tampa. “Through cases like this one, HSI is helping to protect our economy and preserve job opportunities from being lost due to fraud.”

Toro is a citizen of Brazil and will be subject to removal from the United States after serving her sentence. According to evidence presented at trial, Toro worked for VR Services, a large temporary labor staffing company based in Orlando, which supplied temporary labor to numerous businesses in the hotel and hospitality industries throughout Florida and the United States. The scheme allowed Toro and her co-conspirators to set up a permanent foreign labor pool that hired illegal alien workers across the United States in jobs that would normally have been filled by United States citizens. As part of the conspiracy, Toro and her co-conspirators submitted false documentation to the government and manipulated the H-2B foreign worker visa process. They also submitted fake hotel contract agreements to conceal their activities and falsely reported that U.S. workers had been hired when they had not.

For more:  http://www.laht.com/article.asp?ArticleId=443603&CategoryId=14090

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by | November 1, 2011 · 4:53 am

Hospitality Industry Employee Risks: Hotel Management Company Files Suit Against Two Former Employees And Employer Claiming "Theft Of Confidential Documents"

 “…Hersha Hospitality Management LP has filed suit against two former employees and their new employer, claiming the former employees allegedly could have stole thousands of confidential documents before leaving to take their new jobs…”

 In a 17 October filing in U.S. District Court, Hersha said the employees engaged in a “web of deception” in their final days at Hersha before leaving for positions at The Procaccianti Group, a private real-estate investment company. Before leaving, Hersha said in the filing, the two recruited two other key Hersha employees to also leave. The two denied recruiting the other executives, Hersha said in the filing.

By way of a computer forensic examination, Hersha also found the two former employees potentially stole “thousands” of sensitive computer files. “(Hersha) is now faced with the real possibility that its direct competitor, TPG, could have access to its most important competitive secrets and strategies,” Hersha officials wrote in the filing. “Upon information and belief, TPG encouraged this conduct by offering the former (Hersha) employees substantial raises in a blatant effort to harm (Hersha) by raiding its top managers and by inducing them to commit wrongs.”

 

A call to TPG president and CEO James A. Procaccianti was returned by the company’s director of communications Ralph Izzi, who said it is TPG’s policy to not comment on pending litigation. A Message left by HotelNewsNow.com with Hersha president and CEO Naveen P. Kakarla was not returned by deadline Friday.

 

For more:  http://www.hospitalitynet.org/external/4053560.html

 

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by | October 31, 2011 · 5:38 am

Hospitality Industry Guest Satisfaction: "Respectful Treatment" By Hotel Employees Tops Is Top Concern Of Business Travellers

“…74% of executives say hotel workers need to treat them with respect if they want to keep their business…according to a survey released last week…”

What comes through loud and clear is that an executive traveler isn’t asking for high-priced service as much as high touch,” said Shawn Abaspor, chief executive of Vitesse Worldwide.

One of the world’s largest hotel companies is now letting guests post reviews on its hotel websites — even guests who aren’t happy with their stay. Starwood Hotels & Resorts Worldwide, whose hotel brands include Sheraton, Westin and St. Regis, recently unveiled a new feature to let guests write reviews that will appear on the hotel website. And the hotel company has encouraged guests to be honest.

Online hotel review sites are plentiful. But until now, hotels themselves rarely — if ever — post reviews by guests, said Kathryn Potter, a spokeswoman for the American Hotel & Lodging Assn., the trade group for the nation’s hotel owners.

“This is the first I’ve ever heard of a hotel posting reviews on their own site,” she said.

Only guests who type in their reservation confirmation number can submit reviews, and Starwood officials promise not to block negative reviews.

On the website for the St. Regis Monarch Beach Resort in Dana Point, most of the reviews are positive. But one mentions a problem with service. “When we first arrived, we waited five minutes for someone from valet to take care of us,” wrote a guest from North Carolina.

For more:  http://www.latimes.com/business/la-fi-travel-briefcase-20111031,0,6754845.story

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by | October 26, 2011 · 5:11 am

Hospitality Industry Employee Risks: New Mexico Hotel Operator Sued By Guests Who Were "Spied On" Through Bathroom Wall


“.. family says in a lawsuit that they were spied on while taking showers last year in an Albuquerque hotel…”

“…named as defendants are Wyndham Worldwide Hotels, a parent company of Ramada Inn, which used to operate the motel, as well as Bhakta, Gonzales and another employee, Gibi George, who had access to the maintenance corridor. The complaint says all three of them subsequently left their employment at the hotel…”

Eric and Evangeline Vigil and their two children — a 17-year-old son and an 8-year-old daughter — checked into the Ramada Inn, 2015 Menaul Blvd. NW, on April 23, 2010, during a weekend visit to Albuquerque to celebrate the teen’s birthday, according to a lawsuit filed Tuesday in state District Court.

The complaint says the wife was given a “special rate” for Room 135 when she and the children checked in. The hotel staff were unaware that they were later joined by her husband, the lawsuit says.

While taking separate showers the next morning, each family member heard noises coming from behind the wall of the shower stall. When the father examined the area around the fixtures, the complaint says, he noticed a hole under the faucet.

“As Eric Vigil looked into the hole under the faucet, he saw an eye staring at him from behind the wall,” it says. “Eric Vigil immediately hit the tub surround and shouted. He heard someone attempt to leave the area from behind the wall.”

The complaint says when Vigil went into the hallway, he noticed a maintenance door next to his room door.

According to the complaint, the general manager, Sanketkunar Bhakta, told Vigil “the maintenance guy” had been fixing pipe behind the door, but after Vigil called police, Sanketkunar told the officers that he and another employee, Sergio Gonzales, were fixing a sewer line. Subsequently, Bhakta changed his story and claimed that he and Gonzales were fixing television cables in the corridor, the complaint says.

An inspection of the maintenance corridor found insulation had been removed from the wall behind the shower stall “to afford a clear line of sight into the shower stall” and that a plastic bucket was placed there to provide a place to sit while spying through the peephole, the complaint says.

For more:  http://www.santafenewmexican.com/Local%20News/Suit–Family-spied-on-via-peephole-in-hotel-shower

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by | October 11, 2011 · 10:22 am

Hospitality Industry Employee Application Risks: Video News Report Of South Carolina Hotel That Fired Employee After Police Inquired About "Identification Records"

[youtube=http://www.youtube.com/watch?v=2hGgQUS45LQ]

South Carolina Hotel fired an employee after 15 months when she could not produce required identification.

 

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