Tag Archives: Employees

by | July 23, 2010 · 5:53 am

Hospitality Industry Employees Risks: Hawaiian Hotels Violated State Law When Service Employees Not Given 100% Of Service Charges For Food And Beverage Service

“…The suit, filed by Turtle Bay employees in January 2009, claimed the resort violated a state law enacted in 2000 that requires hotels and restaurants to give 100% of service charges for food or beverage service entirely to employees – unless they tell customers that management’s keeping a portion, the Honolulu Star-Advertiser says…”

Employees of the Turtle Bay Resort on Oahu’s scenic North Shore won a $526,000 settlement  in a lawsuit over tips that had been split among workers and the company without customers knowing.

At least nine similar suits have been filed over the last two years against major Hawaii hotels, Brandee Faria – the Turtle Bay employees’ lawyer – tells the Star-Advertiser. And it’s not only the employees who are hiring lawyers.

Some of the suits were filed on behalf of hotel customers who thought they’d paid tips to staffers – not hotel management.

In a case against the Four Seasons hotels on Maui and the Big Island, the Star-Advertiser says that Hawaii Supreme Court in March ruled that hotel and restaurant employees may sue under the law.

The Turtle Bay settlement covers 130 employees who worked at the hotel between 2005 and 2009; the amount would mean $4,046 per employee if the settlement was shared equally, the story says. Settlement checks were mailed out recently.

For more: http://travel.usatoday.com/hotels/post/2010/07/hawaii-hotel-workers-win-526000-settlement-in-back-tips/100924/1

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by | July 17, 2010 · 10:40 am

Hotel Industry Employee Risk Management: Hotel Ownership Must Insure Compliance With State Laws Regarding “Service Charges” Being Withheld Illegally From Service Staff Which Can Result In “Triple Damages” Being Awarded

“…the case involved a portion of service charges — which are added onto bills at the end of banquets, weddings and large events — being withheld from servers, and all hotel and restaurant staff working at least eight-hour shifts were having 30-minute meal breaks deducted from their paychecks even though they weren’t receiving them.”

“What we alleged in this case was a portion of [the service charge] was going to managers, the sales department, and others who aren’t permitted under law to dip into this money intended for waitstaff,” he said.

“…state law ordering food establishments found to be withholding wages and tips to pay employees up to three times as much as they’re owed…”

The Orchards Hotel has agreed to a $240,000 proposed settlement in a class action lawsuit involving approximately 150 current and former hourly employees.

With state law ordering food establishments found to be withholding wages and tips to pay employees up to three times as much as they’re owed, the employees at The Orchards will receive between two and three times what they were owed in wages and tips, Holtzman said.

“The settlement is not only the recovery each employee is owed, but a multiple of what is owed,” he said.

For more:   http://www.berkshireeagle.com/local/ci_15528594

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Filed under Labor Issues, Liability, Risk Management

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by | July 14, 2010 · 6:34 am

Hotel Industry Employment Risks And Liability: Dept. Of Labor (DOL) Is Increasing Compliance Audits To Look For Violations Of Overtime Rules, Minimum Wage And Federal Wage And Hour Regulations

“. . .The U.S. Department of Labor (DOL) is planning an initiative that specifically targets every hotel, motel and resort in the United States for audits by the department’s Wage and Hour Division.”

“. . . DOL has labeled the lodging industry as a “high-risk industry” where violations of federal wage and hour laws are most likely to occur. The department has chosen to consider employees in the lodging industry as “the most vulnerable workers” in the country. As a result, you will be subject to a DOL audit, covering all of your employees…”

The Department of Labor’s (DOL) Wage and Hour Division (WHD) has experienced a huge increase in funding and staffing, adding hundreds of new investigators, and is gearing up for a new wave of compliance audits and enforcement actions.

Specifically targeting the hospitality industry, the WHD plans to audit hotel employers for violations of overtime rules, minimum wage, family and medical leave, classification of exempt and non-exempt positions, and virtually every Federal labor wage and hour regulation.

  • Perform an internal audit. Talk to your hotel labor lawyer who can organize an internal audit of your payroll practices, hiring practices, and recordkeeping procedures and then help ensure that your organization is in compliance with Federal laws, including H-2B requirements. It is important that you avoid precipitous action to terminate any employees that do not meet the H-2B visa requirements, because there are anti-discrimination laws that also apply to any termination based on immigration status.
  • Understand your exposure. Hotels that use outside staffing agencies to hire employees face certain risks as well since they can be held responsible for failure on the part of the agency to comply with federal regulations. Also, employers with collective bargaining agreements may need to involve the union on various aspects of the audit, including H-2B visa employees if they are part of the “represented workforce.”
  • Develop a strategy. Experienced hotel labor lawyers can let you know what to expect in a government compliance audit and should help you prepare a strategy for successfully cooperating with all phases of the audit. Your management team should be alerted so that no one panics when the audit notice is received, and they know the importance of getting it to the right person quickly so you can promptly launch the action plan you developed.
  • Get involved. The American Hotel & Lodging Association (AH&LA) is urging hotel employers to ask their elected officials to contact the U.S. Department of Labor on their behalf to express their opposition to the hospitality industry being singled out for compliance audits. AH&LA is the primary advocate of the hospitality industry in Washington D.C., giving a voice to thousands of individual hotels and owners. The Association’s success depends on the number of people in the industry that become involved and support the Association’s important work. To get involved and become a member of the AH&LA you can register on their website at www.ahla.com.

For more:   http://www.hospitalitynet.org/news/154000320/4047438.search?query=hospitality+industry+risks

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by | July 12, 2010 · 10:48 am

Hospitality Industry “Employee Theft” Risk Management: Hospitality Business Owners Must Amend Employment Manuals To Specifically Prohibit Employee Access To Company Records Once “Employment Ceases”

“…employers should amend their employment manuals to assert that any authorization granted to an employee to access the company’s networks, files or data automatically ceases when the employee has been terminated, tenders a resignation or forms an intent to leave the employer for any reason — irrespective of whether the employer has actually blocked the employee’s access…”

“…employers should make clear in their employment handbooks, manuals and employment agreements that any authorization to access company data is granted only in furtherance of the employer’s business purposes. They should state explicitly that any other access is unauthorized. Such language has been cited by courts in several cases where employer CFAA claims have been allowed…”

“…employers must remain vigilant to retrieve laptop computers from employees immediately after an employee gives notice. They should also immediately change passwords and close remote access upon learning of an employee’s intention to leave the company…”

According to “A Statistical Analysis of Trade Secret Litigation in Federal Courts,” that was recently published in the Gonzaga Law Reform, the number of trade secret cases has grown “exponentially” in recent years. “Most alleged misappropriators are someone the trade secret owner knows,” the authors write. “Specifically, in over 85 percent of cases, the alleged misappropriator was either an employee or business partner.”

Cases of employee-related data theft more than doubled between 2006 and 2008, according to a study conducted by accounting and consulting firm KPMG. Based on its findings, the firm concluded that the number of such incidents is “almost certain” to increase further, especially in a difficult economic environment.

For more:  http://www.hreonline.com/HRE/story.jsp?storyId=475264808

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Filed under Crime, Insurance, Liability, Risk Management, Theft, Uncategorized

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by | July 9, 2010 · 5:52 am

Hotel Industry Employment Liability: National Labor Relations Board Orders Illinois Hotel To Rehire Employees, Restore Health Insurance Plan And Cease Refusal To Negotiate With Union

The hotel, at 636 S. Michigan Ave., was ordered by the board to offer jobs back to 14 employees who were laid off last month, and provide them with back wages, according to a news release. A board judge also ordered the hotel to restore its 2008-2009 insurance plan and pay employees to compensate for increases to health care costs that were deemed unlawful.

The hotel was also ordered to stop refusing to bargain with the union on the health care package and layoffs, the release said.

The union estimates that the lost earnings and increased benefit costs amounted to at least $250,000, the release said.

For more:   http://cbs2chicago.com/local/blackstone.hotel.union.2.1793955.html

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by | June 1, 2010 · 7:01 am

Hotel Industry Labor Risks And Liability: California Labor Commissioner Sues Hotel For Labor Violations Including Failure To Pay Wages, Minimum Wage And Overtime Pay

California’s Labor Commissioner has filed a lawsuit against David Weyrich’s Carlton Hotel Investments LLC for labor violations involving more than $100,000 in lost wages and penalties.

The hotel is accused of six labor code violations, including failure to pay wages when due, failure to pay minimum wages and failure to pay overtime.

The lawsuit, filed today by the state Department of Industrial Relations in Paso Robles’ Superior Court, alleges the violations involve an estimated 60 workers employed by the hotel since October 2009, according to court documents.

Read more: http://www.sanluisobispo.com/2010/03/08/1059170/david-weyrichs-carlton-hotel-sued.html?storylink=mirelated#ixzz0pc50ICrj

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