Tag Archives: Lawsuits

Hospitality Industry Legal Risks: “Boone Hotel Executive Charged in Best Western Deaths “

“…Investigators have determined that carbon monoxide from the swimming pool water heater seeped up from a corroded exhaust pipe into the room, Imagekilling Daryl and Shirley Jenkins of Washington state in April and 11-year-old Jeffrey Williams of York County in June. Jeffrey’s mother, Jeannie, suffered serious injuries…”

“…“It doesn’t require evil intent,” said John Barylick, a lawyer in the Rhode Island case. ‘It just requires that you were stunningly careless.’…”

A business executive who managed the Best Western was indicted Wednesday on charges of involuntary manslaughter in the deaths last year of three hotel guests poisoned by carbon monoxide.A grand jury returned the three counts against Damon Mallatere, president of Appalachian Hospitality Management. The jury also indicted Mallatere on one additional count of assault inflicting serious bodily injury on another hotel guest who was poisoned.Police and prosecutors ended a news briefing without discussing the indictments, leaving many unanswered questions. Though Mallatere is the only person charged, an Observer investigation uncovered multiple missteps that contributed to the tragedies in the hotel’s Room 225.

For more: http://www.thestate.com/2014/01/08/3196549/boone-hotel-executive-charged.html

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Filed under Guest Issues, Liability, Maintenance, Pool And Spa, Risk Management

Hospitality Industry Legal Risks: California Hotels And Restaurants Increasingly Face “Prop 65” Toxic Substance Disclosure Lawsuits; “Two-Week Grace Period” Enacted

“…there has been an increase in these lawsuits over the years, with some lawyers targeting small businesses for everyday exposures, like California Prop 65 Toxin Warningalcohol or cigarette smoke outside a bar…Proposition 65 suits have helped make California the most litigious state in the union, and those lawsuits disproportionately affect small businesses…mostly small businesse paid about $22.5 million in Prop 65 settlements in 2012 alone…For virtually all environmental law in the U.S., it’s the government’s responsibility to go after businesses or products that are hurting consumers… But Proposition 65 doesn’t work like that. The state just puts out a list of chemicals that might hurt you. The responsibility is on businesses to warn consumers, and on consumers to sue if they don’t…”

“…In the amendment to the law passed in 2013, small business owners faced with a lawsuit now have a two-week grace period to comply…”

All over California, signs in restaurants, parking garages and other businesses warn that you could be exposed to chemicals that can cause cancer. The disclosure is mandated by 1986 state law. If a company fails to warn consumers, it can be sued.

But a lot has changed since the law was passed: The list of toxic chemicals is longer and the lawsuits are more prolific. In October, Gov. Jerry Brown signed an amendment to ease the burden on businesses.

For more:  http://www.npr.org/2014/01/05/259925903/calif-toxin-law-warns-consumers-but-can-burden-businesses

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Filed under Guest Issues, Health, Management And Ownership, Risk Management

Hospitality Industry Theft Risks: Maine Restaurant Bookkeeper Charged With Embezzling $80,000 Over 10 Months

“…Starting in January 2013 and continuing through October, (the defendant) began forging checks and taking cash from the Brass Compass and Hospitality Industry Employee TheftArcher’s restaurant. The lawsuit claims that Allen forged Archer’s name on $49,592 in checks and stole about $30,000 in cash from the two restaurants…Also, during those 10 months, Allen failed to pay state sales taxes for the two restaurants, which has resulted in Archer incurring interest and penalties for the failure to pay the taxes…”

The owner of two Rockland restaurants has filed a lawsuit against her former bookkeeper, alleging she embezzled nearly $80,000. Lynn Archer and her company Archer’s LLC filed the lawsuit Tuesday in Knox County Superior Court against Melanie L. Allen of Union.

Allen was arrested Oct. 23 by Rockland police and charged with felony theft and felony forgery. At the time, police said Allen was suspected of embezzling at least $18,000 from the Brass Compass Cafe and Archer’s on the Pier, both Rockland restaurants owned by Lynn Archer.

For more:  http://bangordailynews.com/2014/01/02/news/midcoast/rockland-restaurant-owner-sues-bookkeeper-over-alleged-theft/?ref=latest

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Filed under Labor Issues, Management And Ownership, Risk Management, Theft

Hospitality Industry Legal Risks: Pennsylvania Hotel Faces Federal “Sexual Harassment And Retaliation” Lawsuit; Woman Terminated After Making Written And Verbal Complaints

“…the hotel’s assistant manager, told the plaintiff that (the defendant) was telling others that he possessed nude photographs of Vazquez, Hospitality Industry Sexual Harassment Lawsuitssomething the woman denied…(she) met with the hotel’s manager (and asst. manager) in the spring of 2012 to discuss the situation…Vazquez subsequently offered the human resources department a written statement about the harassing conduct…Two days after she submitted her statement, the plaintiff was placed on a five-day suspension…Vazquez was told she was being suspended for voiding a transaction at the front desk when her cash drawer was short, even though the plaintiff claims she was taught to do just that in such a situation when she first started working for the defendant…After returning from her suspension on May 16, 2012, the plaintiff was immediately fired from her job…”

A Philadelphia woman who worked as a front desk agent for the Sheraton Philadelphia Downtown Hotel has filed a federal civil action against the business contending she was fired in retaliation for speaking out about harassing conduct on the part of another worker.

Crystal Vazquez, who was first hired by the defendant in May 2010, maintains that her firing exactly two years later was retribution for the plaintiff complaining about sexual harassment by the hotel’s AT&T specialist, a man identified in the complaint as Ryan Sheridan. Sheridan, who is not listed as a defendant in the litigation, allegedly told hotel employees that he and the plaintiff had been sexually intimate.

Vazquez was out on maternity leave in late December 2011, which is when Sheridan was allegedly making the comments about the supposed intimate nature of his relationship with the plaintiff, the lawsuit states.

“Needless to say, Plaintiff’s termination was a direct result of her complaints regarding sexual harassment,” the complaint reads. The lawsuit accuses the hotel of violating the Civil Rights Act and the Pennsylvania Human Relations Act.

For more: http://pennrecord.com/news/12512-sheraton-phila-downtown-hotel-named-in-federal-civil-rights-claim-tied-to-wrongful-firing-of-front-desk-agent

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

Hospitality Industry Legal Risks: California Restaurant Ordered To Pay $5.68 Million In “Age Discrimination” Lawsuit; Acted With “Fraud & Malice” After Terminating Four “Older” Women

“…a second phase of trial the same day, the jury added a combined total of $4 million in punitive damages after finding that the restaurant Hospitality Industry Discrimination Lawsuitsacted with fraud, oppression and/or malice after terminating all four, then replacing them within a short time with younger women in their 20s…the restaurant was advertising for the plaintiffs’ replacements even after promising them that their minimum-wage jobs were safe, according to their attorney…”

Four former servers at a Woodland Hills restaurant were collectively awarded $5.68 million in a lawsuit alleging they were laid off from their jobs because of their ages. The plaintiffs, Martha Aboulafia, 61, Cheryl B. Colgin, 61, Regina Greene, 49, and Patricia Monica, 70, had a combined 47 years of service at Cable’s Restaurant at 20929 Ventura Blvd. All were let go by the restaurant’s new owner in 2010, according to trial testimony.

The women sued Cable’s and its owners, GACN Inc., in Los Angeles Superior Court in September 2011, alleging age discrimination and wrongful termination. On Dec. 17, a jury deliberated for less than two hours before unanimously awarding a combined $1.68 million in compensatory damages to the women for lost wages and emotional distress.

For more:  http://www.dailynews.com/business/20131224/4-woodland-hills-restaurant-workers-awarded-57m-in-age-discriminaton-lawsuit

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

Hospitality Industry Legal Risks: North Carolina Restaurant Settles EEOC “Religious Discrimination” Lawsuit For $40,000; Veteran Female Worker Fired For “Refusing To Wear Pants To Work”

The EEOC’s complaint alleged that the  companies informed Silver she must wear pants to work because of their dress  code policy.  According to Equal Employment Opportunity Commissionthe EEOC,  Silver told Scottish Food Systems and Laurinburg KFC Take Home she could not  wear pants because of her religious beliefs.   However, the companies ultimately fired her for refusing to wear pants  to work.

Scottish Food Systems,  Inc. and Laurinburg KFC Take Home, Inc. will pay $40,000 and furnish other  relief to resolve a religious discrimination lawsuit filed by the U.S. Equal  Employment Opportunity Com­mission (EEOC), the agency announced today.  Scottish Food Systems and Laurinburg KFC Take  Home are based in Laurinburg, N.C.  and  jointly operate a chain of Kentucky Fried Chicken restaurants in North  Carolina.

According to the EEOC’s complaint, Sheila  Silver converted to Pentecostalism in 2010.   As a member of the Pentecostal church, Silver believes women cannot wear  pants.  In accordance with this religious  belief, Silver has not worn pants since the fall of 2010.  Silver has worked for various Kentucky Fried  Chicken restaurants since 1992.  Scottish  Food Systems and Laurinburg KFC Take Home purchased the KFC restaurant where  Silver worked in Rocky Mount, N.C., in April 2013.

Such alleged conduct violates Title VII of the Civil  Rights Act of 1964 (Title VII), which requires employers to reasonably  accommodate an employee’s religious beliefs as long as doing so would not pose  an undue hardship.  The EEOC filed suit on  September 19, 2013 in U.S. District Court for the Middle District of North  Carolina (EEOC v. Scottish Food Systems,  Inc. and Laurinburg KFC Take Home, Inc., Civil Action No. 1:13-CV-00796)  after first attempting to reach a pre-litigation settlement through its  conciliation process.

In  addition to monetary damages, the three-year consent decree resolving the suit  requires Scottish Food Systems and Laurinburg KFC Take Home to adopt a formal  religious accommodation policy and to conduct an annual training program on the  requirements of Title VII and its prohibition against religious discrimination.  Scottish Food Systems and Laurinburg KFC Take  Home will also post a copy of their anti-discrimination policy at all of their  facilities.

“Employers  must accommodate an employee’s sincerely held religious belief when such an  accommodation would not pose an undue hardship,” said  Lynette A. Barnes, regional attorney for the EEOC’s Charlotte District  Office.  “This case demonstrates the  EEOC’s continued commitment to fighting religious discrimination in the  workplace.”

The EEOC is responsible for enforcing  federal laws prohibiting discrimination in employment.  Further information about the EEOC is  available on its web site at www.eeoc.gov

For more: http://www.eeoc.gov/eeoc/newsroom/release/12-23-13.cfm

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

Hospitality Industry Safety Risks: Texas Hotel Faces “Wrongful Death” Lawsuit; Guest Falls Off “Defective Treadmill”

“…During his stay, (the deceased) went to use the property’s exercise room where he got on a treadmill maintained by Exer-Tech, according to the Hospitality Industry Wrongful Death Lawsuitssuit…a “defective” condition in the treadmill caused him to fall and strike his head (causing) a serious injury to his head which in turn resulted in his death…”

The family of a man who allegedly sustained a fatal head injury while working out at a Houston hotel has pursued legal action, recent court documents say. The late William Lake III’s widow and their three minor children filed a lawsuit against Marriott Hotel Services Inc. and Exer-Tech Inc. in Harris County District Court on Nov. 14.

Houston federal court received the case on Dec. 18. At the time of the events of last May 15, Lake was a paying guest at the Houston Marriott George Bush Intercontinental Airport.

His survivors fault Marriott for failing to address the treadmill’s allegedly dangerous condition while Exer-Tech is blamed for allegedly failing to properly maintain and repair the device. Consequently, the plaintiffs seek unspecified monetary damages.

For more:  http://setexasrecord.com/news/292891-family-asserts-defect-in-hotel-treadmill-caused-mans-fatal-head-injury

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Filed under Guest Issues, Liability, Maintenance, Management And Ownership

Hospitality Industry Employment Risks: California Restaurant Group Settles “Religious Discrimination” Lawsuit With EEOC For $50,000; Trainer Fired For Growing Beard

“…The EEOC had charged that a restaurant formerly owned by McDonald’s in Fresno refused a request from a Muslim employee, a crew trainer, Equal Employment Opportunity Commissionto grow a beard for religious reasons which lead to his constructive discharge in September 2005…Aside from the monetary relief for the crew trainer, the two-year consent decree settling the suit provides that McDonald’s will reinforce training of its managers and staff and redistribute its existing policies related to religious discrimination and accommodation…”

McDonald’s Restaurants of California, Inc. will pay $50,000 and furnish other relief to settle a religious discrimination lawsuit by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which requires that employers make reasonable accommodations to the sincerely held religious beliefs of employees and applicants as long as this causes no harm to the business.  The EEOC filed suit in U.S. District Court for the Eastern District of California (EEOC v. McDonald’s Restaurants of California, Inc., Case No. 1:13-cv-02065AWI-SAB) after first attempting to reach a pre-litigation settlement through its conciliation process.

“We commend McDonald’s for its commitment to training and ensuring that its staff and managers are well-versed on laws relating to religious discrimination,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office.  “We hope other employers follow McDonald’s lead in promoting training and development of extensive anti-discrimination policies.”

Melissa Barrios, director of the EEOC’s Fresno Local Office, said, “Workers have the right to request an accommodation which would allow them to work while still practicing their religious beliefs.  Employers must consider such requests and ensure that no negative actions are taken against workers who exercise this right.”

The EEOC is the federal agency that enforces federal laws prohibiting employment discrimination.  Further information about the EEOC is available on the agency’s web site at www.eeoc.gov.

For more: http://www.eeoc.gov/eeoc/newsroom/release/12-20-13a.cfm

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

Hospitality Industry Safety Risks: Kentucky Motel Faces $1.1 Million “Negligence Lawsuit” After Guest Is Injured By Collapsed External Stairway

“…(the plaintiff) suffered broken heels and ankles in both legs, three broken bones in her lower back and multiple lacerations and bruises Hospitality Industry Injury Lawsuitsfollowing the April 23 stairway collapse…the defendants were negligent by “specifically allowing or creating a hazardous condition in the stairwell of the premises by failing to ensure that the steps were safe for use …” She also alleges the owners and manager should have known about the unstable stairwell. She is asking the court to award her $200,000 in medical expenses, $500,000 for pain, suffering and mental distress and $400,000 for future impairment to earn a living…”

A woman who was injured earlier this year after an external stairway collapsed at Richmond’s Super 7 motel suffered serious injuries that may make it impossible for her to work again, according to a lawsuit she has filed. Amanda R. Williams is suing the owners and operators of the motel, Richmond Host LLC and Alisha LLC, and the motel’s local manager, Paul Patel.

Williams said she must wear a back brace and is “confined to a wheelchair.” Both her legs are in boots, and she is under the care of a orthopedic doctor and a neurosurgeon in additional to receiving physical therapy, according to her suit.

See more at: http://www.richmondregister.com/localnews/x1250993435/Woman-details-injuries-suffered-in-motel-stairway-collapse#sthash.MR4LdSyZ.dpuf

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Filed under Guest Issues, Injuries, Liability, Maintenance, Management And Ownership

Hospitality Industry Employment Risks: Florida Hotel Settles Federal “Wage Violation” Investigation For $30,000 In Back Pay; Failed To Maintain Accurate Payroll Records

“Even when an employer contracts with a payroll service company, as this one did, the employer is required by federal labor laws to record and Hospitality Industry Wage Violation Lawsuitsmaintain accurate records of hours worked by employees. The employer is responsible for submitting accurate data for the preparation of employees’ paychecks,” said James Schmidt, director of the Wage and Hour Division’s Tampa District Office. “It is illegal for an employer to falsify the number of hours worked by employees.”

The division has noticed the noncompliance in the hospitality industry and is concentrating its resources on investigating and remedying violations, informing workers of their rights and providing compliance assistance to employers. Since 2009, the division has concluded nearly 5,100 cases involving hotel and motel employers, resulting in more than $16.1 million in back wages for more than 30,000 workers nationwide.

Olympia Development Group LLC, doing business as Safety Harbor Resort and Spa in Tampa, has paid 37 employees $30,786 in back wages after an investigation by the Wage and Hour Division of the U.S. Department of Labor identified violations at the resort of the Fair Labor Standards Act’s overtime, minimum wage and record-keeping provisions.

The investigation disclosed that management changed employees’ time records, removing hours they had worked before and after their scheduled shifts, and deducting meal breaks, regardless of whether those breaks had actually been taken. These deductions from employees’ timecards, in addition to violating record-keeping provisions, resulted in both minimum wage and overtime violations when hours worked went unpaid.     Additionally, tipped employees were paid in violation of FLSA minimum wage requirements when, in addition to their direct cash wages they received from the employer, they did not collect enough in tips to earn minimum wage, yet the employer failed to make up the difference. Tipped employees were also paid in violation of FLSA overtime requirements when their overtime rates were based on time and one-half their direct cash wages rather than the full minimum wage of $7.25 per hour.

The employer has paid all the back wages found due and has agreed to comply with the FLSA in the future.

The FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour, as well as time and one-half their regular rates of pay for hours worked over 40 per week. In general, hours worked includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning of the first principal work activity to the end of the last principal activity of the workday. Additionally, the law requires that accurate records of employee’s wages, hours and other conditions of employment be maintained.

The Wage and Hour Division’s Tampa District Office can be reached at 813-288-1242. Information on the FLSA and other federal labor laws is available by calling the division’s toll-free helpline at 866-4US-WAGE (487-9243) or by visiting http://www.dol.gov/whd.

For more: http://www.dol.gov/whd/media/press/whdpressVB3.asp?pressdoc=Southeast/20131210.xml

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