Tag Archives: Employees

by | October 7, 2011 · 3:10 pm

Hospitality Industry Employee Risks: California Supreme Court To Determine Whether "Non-Exempt Employees Are Entitled To Uninterrupted, Off-Duty Meal Periods Of 30 Minutes For Every Five Hours Worked"

“…At issue in the case is whether California employers must ensure that their employees actually take their meal and rest periods or merely make them available. Guidance is also anticipated regarding the time in the workday in which meal and rest periods must be taken and whether or not legally-compliant meal and rest period policies can protect an employer against class actions even when these policies are unevenly enforced…”

The California Supreme Court will hear oral argument in Brinker Restaurant v. Superior Court (Hohnbaum, et al., real parties in interest) on November 8, 2011, according to the Court docket issued this week. The Court generally issues decisions within 90 days after completion of oral argument and submission of post-argument briefs, if any. A decision is expected by mid-February, 2012.

The decision is extremely important to California employers because meal and rest period claims have been the basis of hundreds of class action lawsuits in California. The Court’s decision could make it more difficult for plaintiffs to bring these claims as class actions, or, depending on the ruling, could establish rigid guidelines which may foster more class actions. Either way, California employers and plaintiffs class action lawyers alike have eagerly awaited this decision since the Supreme Court took up the case in October 2008 and look forward to receiving guidance from the high court.

Under California law, nonexempt employees are entitled to uninterrupted, off-duty meal periods of at least 30 minutes for every five hours worked. While there are certain limited exceptions to this rule (such as a revocable written waiver of the meal period in limited circumstances), employers are required to compensate employees for on-duty meal periods. In addition, California law assesses employers a penalty equal to one hour of pay at the employee’s regular rate for every day there is a meal period violation.

For more:  http://hotellaw.jmbm.com/2011/10/labor_brinker_case.html

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by | October 5, 2011 · 12:36 pm

Hospitality Industry Employment Liability Risks: "Employment Practices Liability Insurance" Does Not Cover Lawsuit Brought By EEOC According To A Federal Court; Insurance "Claims" Limited To Suits Brought By "Employees"

“…A federal court in Tennessee recently ruled that an employer’s employment practices liability insurance (EPLI) did not cover a $2.7 million settlement of a lawsuit brought by the EEOC… because the policy limited “claims” to proceedings brought by employees, and the EEOC was not Cracker Barrel’s employee…”

 The specific language in the policy defined a “claim” as “a civil, administrative or arbitration proceeding commenced by the service of a complaint or charge, which is brought by any past, present or prospective ‘employee(s)’ of the ‘insured entity’ against any ‘insured.’”

After 10 Cracker Barrel Old Country Store employees filed charges of race and/or sex discrimination with the EEOC, the EEOC sued Cracker Barrel under Title VII. Cracker Barrel eventually settled the underlying EEOC lawsuit, entering into a consent decree obligating it to place $2 million into a settlement fund. In addition, Cracker Barrel incurred more than $700,000 in defense costs.    

Although Cracker Barrel gave proper written notice of the EEOC lawsuit to its carrier, the Court ruled that Cracker Barrel was not entitled to recover any of the $2.7 million under its EPLI policy. The Court held that the language in the EPLI policy did not extend to the EEOC lawsuit because the policy limited “claims” to proceedings brought by employees, and the EEOC was not Cracker Barrel’s employee.

For more:  http://www.lexology.com/library/detail.aspx?g=21384c3f-95d2-424d-a68c-ecd547ebe694

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by | October 4, 2011 · 5:44 am

Hospitality Industry Employee Risks: Colorado Hotel Owners Sued By U.S. Equal Employment Opportunity Commission (EEOC) For Firing White Workers In Favor Of Hispanic Workers

“…one of the fired employees was told she was being terminated because the hotel owners preferred non-American and non-Caucasian workers ‘because it was their impression that such workers are lazy’..”

The U.S. Equal Employment Opportunity Commission is seeking back pay for employees that federal officials said were fired from a Hampton Inn franchise in Craig, Colo., according to the lawsuit filed last week.

Former employees at a western Colorado hotel said they were fired and replaced with Latino workers because the business owners thought white and non-Hispanic workers were lazy, according to a federal lawsuit announced Monday.

The lawsuit claims the general manager of the hotel was told by the business owners “to hire more qualified maids, and that they preferred maids to be Hispanic because in their opinion Hispanics worked harder.”

For more:  http://www.businessweek.com/ap/financialnews/D9Q51LLO1.htm

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by | October 1, 2011 · 5:33 pm

Hospitality Industry Employee Risks: Nevada Hotel Sued By Federal Government For "Racial Harassment"

“…Federal officials say hotel managers were first told in 2006 that several Hispanic room attendants had been subject to the comments referencing their ethnicity and skin color. The comments came from coworkers and supervisors. Some of the comments were profane…and derogatory names such as “taco bell” and “bean burrito.”

The U.S. Equal Employment Opportunity Commission announced Friday that it had filed a lawsuit against the Pioneer Hotel in Laughlin, Nev. for ignoring the alleged harassment.

The hotel allegedly didn’t take action to prevent or correct the harassment in violation of the federal Civil Rights Act. Federal officials say some Nevada casinos seem to be retaliating against employees who complain about hostile work environment.

http://www.washingtonpost.com/national/feds-sue-nevada-hotel-for-not-protecting-hispanic-employees-from-harassment/2011/09/30/gIQA5ZYABL_story.html

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by | September 28, 2011 · 5:20 am

Hospitality Industry Employee Risks: Rising Health Insurance Premiums Force Hotel Management To Consider Shifting Costs Or Raise Deductibles

“…Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Organizations increased the employee portion of the premium at a rate of 54.3 percent, whereas 42 percent have increased deductible levels….”

 The 2011 Compensation Data Hospitality survey results show companies reported an average premium increase of 9.3 percent. More than 45 percent of respondents indicated they pay more than $9,600 annually for an employee plus family plan.

“The rising cost of insurance premiums is something that continues to be an issue for employers,” says Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “To counteract these rising costs, organizations have to look in different directions in order to continue providing quality coverage for their employees.”

Premium costs remain high for hospitality employers, as 47.9 percent pay more than $7,200 for an employee-plus-spouse plan. Of survey respondents, 42 percent report paying more than $7,200 in premium costs for an employee-plus-children plan. Employee-only plans cost employers between $2,400 and $7,200 per year.

For more:  http://www.qsrmagazine.com/news/medical-insurance-rises-hospitality-industry

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by | September 20, 2011 · 5:49 am

Hospitality Industry Theft Risks: Washington Hotel Housekeeper Arrested For "Stealing iPad" From Guest Room; Global Positioning System (GPS) On Device Tracks Down Suspect

“…The guest noticed his iPad missing from his room Sept. 9, and there was no forced entry… the man used a GPS that had been installed on the device as an anti-theft measure to trace the iPad to Zavala’s apartment complex…”

Olympia detectives arrested a housekeeper at the Red Lion Hotel Olympia on Friday after a hotel guest tracked a global positioning system on his missing iPad to the housekeeper’s apartment, police said

The man contacted police, and detectives went to Zavila’s apartment. She admitted to taking the iPad.

Detectives executed a search warrant at the apartment and found the iPad. They also found a laptop, jewelry and other items that might have been stolen.

Hotel General Manager Jay Johnson said Zavala has been suspended pending the outcome of her case. He added that hotel officials believe the theft is an isolated incident.

Read more: http://www.theolympian.com/2011/09/19/1806512/hotel-housekeeper-accused-of-stealing.html#ixzz1YV3toCsb

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by | September 1, 2011 · 5:27 am

Hospitality Industry Employee Risks: Utah Hotels Report Layoffs After U.S. Immigration And Customs Enforcement (ICE) Audits Find Insufficient "Validations To Work"

 “Responsible employers who seek to conduct their business lawfully are put at an unfair disadvantage as they try to compete with unscrupulous businesses. Such businesses gain a competitive edge by paying illegal alien workers low wages or otherwise exploiting them.”  U.S. Immigration and Customs Enforcement (ICE)

Some reports say 120 employees have been laid off at the Grand America Hotel after an audit report found several of their workers did not have current validation to work in the United States.

Hotel president Bruce Fery said in a statement Wednesday the Grand America is not alone and audits are being conducted statewide. He says that the employees that were found with invalid documentation had “presented facially valid documents when they were hired.”

The recent layoffs come as Utahns and local politicians are debating whether to allow undocumented workers to remain.

For more:  http://www.fox13now.com/news/local/kstu-grand-america-hotel-lays-off-workers-over-lack-of-work-documentation-20110831,0,3023635.story

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by | August 25, 2011 · 3:23 pm

Hospitality Industry Security Risks: Wisconsin Hotel Employee Responsible For Spotting And Reporting Thief On Property

“…A housekeeper saw a man with a metal tool in his hand get out of a Chevy Malibu and peer into the window of a car in the lot. The employee recognized it as the same car involved in a break-in the prior week…”

An observant hotel maid helped nab people believed to be responsible for thefts in a number of communities. According to the Wauwatosa police report:

An 18-year-old Milwaukee man was arrested for theft and retail theft and a 17-year-old Milwaukee man was arrested for retail theft after they were seen prowling in Crowne Plaza Hotel parking lot, 10499 Innovation Drive, at 3:56 p.m. Aug. 14.

The vehicle also matched the description of a car seen driving away from a retail theft at Advanced Auto Parts on 121st Street and Capitol Drive in July. The stolen auto parts were found still in the trunk.

Menomonee Falls, Germantown and Greenfield police believe the duo also is responsible for thefts in their communities.

For more:  http://www.wauwatosanow.com/news/128324293.html

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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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by | June 23, 2011 · 6:54 am

Hospitality Industry Employee Risks: Hotel Management Must Maintain "Employment Practices Liability Insurance" To Protect Against Expensive Litigation Defending "Frivolous" Employee Lawsuits; "Arbitration Agreements As Conditions Of Hiring" Also Helpful

“…based on the new case law, an employer that wins in court can’t even recover attorney fees for frivolous claims, if they overlap with other claims that are viewed as “non-frivolous.”

“…Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying…”

“…Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired..”

That was the ruling last January in a federal court in California. The employer spent $315,000 in attorney fees, and prevailed on each of the ten claims in the lawsuit. The judge found that some of the claims were frivolous, and allocated $85,000 to the employer as reimbursement for the frivolous claims. The 9th Circuit (which also governs federal cases in Oregon) reversed on appeal because the employer didn’t prove that those fees were incurred solely in defense of the frivolous claims. This month, the U.S. Supreme Court made the same ruling in another civil rights case.

So what can employers do to minimize the risk of a devastating loss? Many employers are surprised to learn, after it’s too late to do anything about it, that general liability insurance does not cover discrimination claims. Employment Practices Liability Insurance (“EPLI”) can be purchased, but it often comes with a large deductible (up to $50,000 or more), so it is important to know what you are buying.

Employers can also limit the impact of litigation by requiring new employees to sign arbitration agreements as a condition of being hired. Under these agreements, both sides agree in advance that any employment-related claims will be resolved in arbitration rather than in court. Litigating before an arbitrator tends to be faster and less expensive than court trials. Currently, an Oregon statute requires an employer to tell an applicant about the arbitration agreement 14 days before hiring. A bill is making its way through the Oregon Legislature that would reduce this time period to 72 hours. These agreements need to be carefully drafted to be enforceable.

Read more: Protect against discrimination lawsuits – Oregon Business http://www.oregonbusiness.com/contributed-blogs/5451-changing-rules-for-discrimination-lawsuits#ixzz1Q6ve56Ao

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