Tag Archives: Hotel Employees

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

Hospitality Industry Employee Theft Risks: Delaware Hotel Sales Manager Arrested For "Creating Fictitious Hotel Rewards Program Accounts" And Purchasing Goods Later Resold For Cash

“…McNeill worked at the Renaissance Hotel, part of the Marriott chain, in Tinicum Township as a sales manager until Nov. 24, according to court papers. According to court documents, McNeill allegedly created six fictitious accounts in Marriott’s rewards program and logged points into the system. Purchases using those accounts were made between October and December of last year…”

A former Delaware County hotel employee has been arrested after she allegedly used more than $103,000 worth of fraudulent “hotel points” to buy items on Skymall, the online shopping catalog.

Tia L. McNeill, 34, formerly of King of Prussia, was taken into custody on Tuesday at a Sheraton Hotel in Towson, Md., where she now works. She has been charged with theft, criminal conspiracy, receiving stolen property, and related offenses, according to the District Attorney’s Office.

Also arrested was Christopher Jordan Jr., assistant director of basketball operations at Georgia State University in Atlanta. Jordan told police he would use accounts created by McNeill to order merchandise and then resell the items for cash. He would then send half the proceeds to McNeill.

In addition, McNeill allegedly illegally obtained $26,775 worth of Marriott Visa cards, which can be used only at the hotels

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Filed under Crime, Labor Issues, Liability, Management And Ownership, Theft

Hospitality Industry Employee Issues: California Legislature Considers Legislation To Require "Fitted Bed Sheets" To Reduce Housekeeping Injuries But Costs To Hotels Would Be Significant

“…Supporters of the bill argue it will reduce worker injuries by eliminating the need for workers to repetitively lift extremely heavy mattresses when making beds…”

“… They contend that flat sheets cause workers to strain their backs, shoulders and wrists, and are often responsible for repetitive motion injuries…” 

“..But the California Hotel and Lodging Association says replacing existing sheets to comply with the bill could cost between $30 million and $50 million…”

“…Hotel operators argue they will need to purchase new equipment in order to launder the fitted sheets. They also say fitted sheets will have to be replaced more often, that the elastic in fitted sheets breaks down faster than fabric, and that fitted sheets cost more to iron, fold and store…”

The California Legislature is considering a bill that would regulate what type of sheets can be used on hotel bed mattresses across the state. State Bill 432, sponsored by Sen. Kevin de Leon (D-Los Angeles), also calls for the use of long-handled tools like mops and dusters so housekeepers do not have to get down on their hands and knees to clean bathroom floors.

“Just by using fitted sheets you could cut the number of lifts in half, and we think that would go a long way in preventing worker injury,” said Leigh Shelton, a spokesperson for UNITE HERE, a union that represents California hospitality workers.

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Filed under Health, Injuries, Labor Issues, Liability, Maintenance, Management And Ownership, Training

Hospitality Industry Health Insurance: Law Firms Advise Hotel Ownership And Management To Prepare For Implementation Of Health Care Reform With "Wellness Programs" And State-Run "Insurance Exchanges" On The Way

Given the legal challenges to the proposed reform of the United States health care industry, there might be a temptation on the part of hoteliers to take a laid-back attitude toward preparing for the changes. That line of thinking, however, would be a mistake, said Scott Sinder, a partner in the Steptoe & Johnson law firm government affairs and public policy practice.

  • One of the biggest issues hotel companies will have to wrestle with will be whether to retain grandfather status, which refers to plans in place prior to 23 March 2010
  • Grandfathered plans, for example, can allow for changes to the network of providers but cannot impose new or decreased annual spending limits
  • The potential introduction of a wellness provision that provides funding for employers to establish wellness programs…will be the biggest key to keeping health-care costs down
  • The U.S. Bureau of Labor Statistics reports that just 38% of the employees in the hospitality sector had access to health care as of March 2010 compared with 71% across all industries
  • Every state will eventually have an Insurance Exchange as most state lawsuits against health care reform will be settled before Presidential Election

For more:  http://www.hotelnewsnow.com/Articles.aspx/5314/Hoteliers-should-assume-health-care-changes

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Filed under Health, Labor Issues, Management And Ownership, Risk Management, Training

Hotel Industry Information Security Risks: California Hotel Employees Union Files Suit Over Identification Cards "Encoded With Social Security Numbers"

Disney hotel union members submitted Tuesday a petition with about 1,400 signatures to managers, seeking changes to their employee cards that they say would protect them against identity theft.

Unite Here Local 11, the union that represents about 2,100 hotel workers, is fighting to change identification cards that have encoded Social Security numbers, which can be read by smartphone apps and other devices.

Already last month, the union filed a federal class action lawsuit, claiming that the cards violate state law. Union members collected signatures to emphasize that the majority of hotel workers want an immediate change to their ID cards, rather than a few listed on the lawsuit. Leigh Shelton, a union spokeswoman, said some other unions also are supporting the cause, but they did not participate in this petition.

About 20 workers took their petition to the Disney administration building in Anaheim on Tuesday morning.

“This is a very serious problem that we hope they resolve immediately,” said Eddie Chavez, a union organizer and Disneyland Hotel bellman.

For more:  http://www.ocregister.com/news/-293152–.html

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Filed under Labor Issues, Liability, Management And Ownership, Technology, Theft

Hotel Industry Employee Risks: New York Hotel Employee Convicted Of Raping Guest And Civil Suit Seeks Damages For "Negligent Hiring, Supervision And Training"

A tourist filed a suit on Monday against a New York hotel where she was raped by an employee.

Her Manhattan federal court suit is seeking unspecified damages from the corporate parent company Surrey Hotel Associates for the allegedly negligent hiring, supervision and training of Jaime Marin Lopez Mendoza.

The victim’s holiday nightmare happened two days after Christmas in 2009. She was attacked at about 3am while sleeping in her room in the Dream Hotel on West 55th Street. He was convicted of first-degree rape in January and received a 15 year prison sentence.

Mendoza struck after helping the stumbling woman and her boyfriend into their room following a night of drinking, the New York Post reports. He ran off when she awoke to find him on top of her.

Manhattan Supreme Court Justice Jill Konviser described the attack as the ‘ultimate example of depravity,’ adding: ‘This crime was not only violent and calculated, but it was a master class in cowardice.’ The victim, who comes from Rhode Island, did not go to the sentencing but wrote a letter which was read out in court.

Read more: http://www.dailymail.co.uk/news/article-1366522/Tourist-sues-New-Yorks-Dream-Hotel-employee-raped-her.html#ixzz1GiAlQ223

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Filed under Claims, Crime, Guest Issues, Labor Issues, Management And Ownership, Risk Management

Hospitality Industry Security Risks: Hotel Employee "Erroneously" Gives Room Key To Man Who Is Charged With Child Molestation And Assault

Allegedly, the suspect was not a registered guest at the hotel but was staying with a registered guest. He approached a front desk clerk and stated that he did not have his room key and therefore needed a replacement key.

On top of that, the suspect stated to the clerk which room that he was staying in, and … the clerk did not bother to check the suspect’s identfication against the stated room number.

According to KMOV-News, An intoxicated adult male, Daniel T. Hughes, 42, had asked for a room key at the Ritz Carlton Hotel and was not only given the wrong room key, but climbed into bed with a 9-year old child.

The child’s parents were asleep in an ajoined room. At this time. the Clayton Police Department, do not believe that the suspect had any prediposed motives leading up to the assault, however, he was arrested, charged, and being held on bail. The incident occurred early Sunday evening around 4:00 a.m.

For more:  http://www.examiner.com/offender-awareness-in-st-louis/error-judgment-by-ritz-carlton-employee-leads-to-child-molestation

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Filed under Crime, Guest Issues, Labor Issues, Management And Ownership, Risk Management, Training

Hospitality Industry Employee Risks: Recession Causing More Laid-Off Workers To File "Wage-And-Hour" Claims Which Is Covered Under "Employment Practices Liability" Insurance

“…industry experts say they have seen an increase in wage-and-hour claims, which has led some insurers to stop writing such defense coverage, which most typically is provided for as a sublimit under employment practices liability insurance policies…”

Laid-off workers can, for example, allege that they were not paid for all hours worked, misclassified or not properly paid overtime, experts say.

As layoffs drive wage-and-hour claims, middle-market employers may find defense coverage more difficult to find and more costly when they do, particularly in California, insurers and brokers say. The market firming for wage-and-hour defense coverage comes after a rise in claims by laid-off workers who allege violations of the Fair Labor Standards Act and other laws, according to brokers and insurers.

“It’s a reflection of how difficult it is for employees to find another job,” said Christian Hamlin, a professional lines producer in the Los Angeles office of wholesaler Burns & Wilcox Ltd.

The U.S. unemployment rate remains high, but has improved from the decade’s peak unemployment rate of 10.1% in October 2009, according to the U.S. Department of Labor’s Bureau of Labor Statistics. In February, the U.S. unemployment rate was 8.9%, a 0.1% decline from January, according to BLS.

At the same time, Coverage remains available as some insurers continue to provide it, said Michael Mahoney, senior vp at Willis Insurance Services of California Inc. in San Francisco.

For more:  http://www.businessinsurance.com/apps/pbcs.dll/article?AID=/20110306/ISSUE01/303069982

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

Hospitality Industry Employee Risks: Hotel Management Must Establish "Off-The-Clock" Policies For Employee Responses To Business Calls, Texts And Emails

Adding to the complexity of off-the-clock rules are the number of employees who respond to e-mails, text messages or phone calls after their shift is finished. Workers often do so by choice, but the employer could be held liable for overtime should the employees file a later claim.

“Time spent on these activities will likely be deemed compensable,”

One area that has attracted a significant amount of attention in recent years is rest periods; defined as requiring a 10-minute break period for every four hours of work, and meal periods of at least 30 minutes for shifts lasting longer than five hours.

Previously employers were required by law to ensure their employees took breaks appropriately, but it was difficult to manage, particularly for employees who preferred to take a break and conduct personal business at their desk or work station.

In an appeal of a court order in the case of Brinker Restaurant Corp. vs. Superior Court, the appeal reversed the stricter order, ruling that rest and meal breaks need only be made available, and not ensured.

As this is an issue that affects so many people and produced so many lawsuits, the California Supreme Court granted a review of Brinker decision. A final ruling is expected this year.

“We recommend counseling employees to get off the clock and take their break,” Poole said.

There should also be wording describing the break periods the employee is required to take, at the bottom of every time sheet or card an employee signs, Koegle said. Repeatedly signing a time card with the advisory would be one means of acknowledging the law by employer and employee alike.

Employers should include strong written policy in their company employee handbook that nonexempt employees are not expected to work after-hours, and advise their employees of the policy.

Last, companies requiring employees to change in and out of uniforms at the workplace must compensate the employees for the time spent doing so.

Privacy expectations

The recent technology explosion brings a whole new set of complications for employers. The U.S. Supreme Court rules that an employee with a company-issued device such as a cell phone, smart phone or computer has a reasonable right to privacy while using the equipment.

First Amendment rights protect employee messages, even those a company deems objectionable. A company must have a reasonable cause to search text, e-mails or Internet browsing by an employee.

It is expected however that in the next few months the courts will rule in a company’s favor, granting a company the right to prohibit activity such as surfing the Internet for pornography. Employee use of social media, whether performing duties on the job or for personal use, is also a hot topic.

Companies will need to craft well-written employee policies outlining actions that are subject to discipline or termination. The next question will be how policies can be enforced if an employee violates policy after-hours when they are off-duty.

For more:  http://www.the-signal.com/section/36/article/40833/

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

Hospitality Industry Health Insurance: Hotel Owners Should See Benefits In Providing Health Insurance For Employees As Studies Start To Analyze Data

Researchers at Cornell University in Ithaca, N.Y., said they have found that providing health insurance for workers increases job performance.

Researchers conducted a study reviewing six months of job data to see if providing insurance would affect “job anxiety, tardiness, absenteeism and overall task performance,” the university said in a release. They found only task performance was affected, but a parallel study that concerned workers with health insurance that also included mental health insurance showed a slight increase in job tardiness.

“We wanted to take a scientific look at whether having health insurance made a noticeable difference,” said Sean Way, assistant professor at the Cornell School of Hotel Administration and one of the authors of the study, titled “The Impact of Health Insurance on Employee Job Anxiety, Withdrawal Behaviors and Task Performance.”

Way called the study results that showed increased tardiness among workers provided with mental health insurance “puzzling.”

For more:   http://www.upi.com/Business_News/2011/01/05/Insurance-shown-to-help-work-performance/UPI-11801294259532/

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Filed under Health, Insurance, Labor Issues, Management And Ownership, Training