Tag Archives: Legal Issues

by | January 15, 2014 · 8:42 am

Hospitality Industry Legal Update: “State and Local Laws that Challenge a Hotel’s Existence: Alcohol License Regimes”

“…Hotel executives cannot escape the complex ins and outs of alcohol licensing.  However, there is no reason to fear the application and renewal process or to make assumptions about the limits of your hotel’s existing license.Bar If you are armed with the right questions,then you can more competently discuss these issues with your legal counsel and local alcohol licensing staff. Ask your legal counsel if you have the appropriate license and see if any of your current practices exceed the boundaries of the hotel’s alcohol license…”

The alcohol licensing process for hotels involves a patchwork of state and local regulation that can be difficult to navigate.  Licensing is often highly localized and variable.  Nevertheless, a hotel executive should have a working knowledge of the legal questions to ask in order to understand the bounds of their existing alcohol license.  After all, the alcohol license provides a valuable source of revenue for the business and offers an avenue to provide amenities to guests that encourage repeat patronage.  Conversely, violations of local regulation can result in costly fines and revocation of existing licenses that affect the profitability and marketability of the property.

For more: http://hlconverge.com/index.php/component/k2/item/760-state-and-local-laws-that-challenge-a-hotel-s-existence-alcohol-license-regimes

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by | November 22, 2013 · 6:47 am

Hospitality Law Insider: “Duty Of Care” That Businesses Owe To Mobile Employees From Stephen Barth Of HospitalityLawyer.com (Video)

HospitalityLawyer.com Education Partner IIIn the second episode of Hospitality Law Insider, Stephen Barth covers some essential items to consider when adapting your travel risk plan to meet duty of care obligations. Learn more about how to deal with medical issues, evacuation considerations, and civil unrest.

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by | October 21, 2013 · 8:48 am

Hospitality Industry Employment Issues: Management Must Have An “Interactive ADA Compliance Process” To Insure “Reasonable Accomodation” Of Employee Disabilities; Conduct “Brainstorming Meetings” To Enable Continued Performance Of Job Duties

“…the interactive process is the name given to the process that an employer utilizes in order to determine the appropriate reasonable accommodation that Americans wih disabilities actwill enable an employee with a disability to perform the essential functions of the position…”

“A primary goal (is a) meeting to determine what problems the employee is having in performing their job tasks because of a disability. This entails soliciting ideas from the employee about what you could provide that would enable the employee to perform his or her job duties…”

If the supervisor who is asked for an accommodation can easily provide one, then he or she should do so as soon as possible. However, to establish that you have engaged in good faith in the interactive process, best practice is to schedule a meeting with the employee, the employee’s supervisor and someone from HR.  In addition to soliciting ideas, you may also suggest solutions. The purpose of this brainstorming meeting is to come away with suggestions to enable the employee to continue working. A couple of suggestions:

  • If the employee has a work-related injury, consider involving your workers’ compensation carrier to determine whether there are any monies from your state workers’ compensation division to assist you in making workplace modifications. In Oregon, such funds may be available through the employer at injury program.
  • If you are not sure of an accommodation, consider calling in an expert. This can be accomplished through a phone call to the Job Accommodation Network (JAN), or you can locate a vocational rehabilitation specialist to assist.
  • If you do consult an outside resource, like JAN, be careful about ensuring confidentiality. Do not disclose the employee’s name and identifying information.
  • Keep an open mind.
  • In choosing the accommodation, it is a good idea to understand the employee’s preference, but the employee does not get to choose the accommodation – the employer does. The law requires only that the accommodation be reasonable. Eliminating the requirement to perform an essential job function is not a reasonable accommodation. The employee must still be able to perform the essential job function with an accommodation. Examples of reasonable accommodations include:
    • Job restructuring
    • Equipment (i.e., sit stand desks, lifting mechanisms, carts, new chairs, modified work stations, etc…)
    • Leave of absence
    • Change in work schedule
    • Job reassignment to an available and suitable job
    • Modified workplace policies

For more:  http://www.lexology.com/library/detail.aspx?g=601d48c8-025b-482a-abf9-4f56bd75c350

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by | September 29, 2013 · 6:05 am

Hospitality Industry Legal Issues: Michigan Hotel Renovates Rooms To Accomodate Smokers (And Medical Marijuana Users); “Smoke-Free Air Laws” Do Not Apply To Outside Patios

“…Under the state’s Smoke-Free Air Law, which went into effect in May 2010, tobacco smoking is prohibited inside places where Hotel Guest Smoking Issuespeople work, including hotels, bars and restaurants. But the law doesn’t apply to smoking outside — hence the patios…The law also doesn’t mention cannabis smoke… Betty Aldworth, deputy director of the National Cannabis Industry Association, said “marijuana-related tourism is the fastest-growing sector of the marijuana industry…states with both medical marijuana laws and a flourishing health care industry — such as Grand Rapids — destinations for ill people to legally use medical marijuana.

The Howard Johnson franchise on 28th Street in Grand Rapids has seen occupancy soar since owner Bob Sullivan made a seemingly unfashionable business decision: accommodate smokers. And not just the tobacco variety. Sullivan caters to marijuana smokers, as well.

Twenty rooms already have been renovated to accommodate smokers. And by the time Sullivan’s done, 60-80 of the hotel’s 155 rooms will allow smoking — accommodating medical marijuana patients as well as tobacco smokers.

Michigan legalized medical marijuana in 2008, and Grand Rapids decriminalized marijuana last year — making possession of a small amount a civil infraction, similar to a parking ticket.

Occupancy at the Howard Johnson has seen an increase every weekend, Sullivan said. “Every weekend, every one of those rooms is sold.”

Sullivan, who himself does not smoke cigarettes or marijuana, estimates occupancy is up 50 percent since he started renovating the rooms.

Renovations have included opening up each room with sliding doors and installing a patio with a tall fence around it to provide privacy — “a little smoking area for each room right at the door,” Sullivan said. “Otherwise, people have to go outside the lobby doors.

For more: http://www.crainsdetroit.com/article/20130929/NEWS/309299981/smokers-tokers-light-up-hotel-owners-occupancy-rates#

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by | September 27, 2013 · 5:46 am

Hospitality Industry Safety Risks: Florida Hotel Group To Place “Lifeguards And Fences” At Pools During “All Open Hours”; Move Follows Death Of 13-Year Old Boy In March

“…Lifeguards will be on duty at all times while the pools are open…But guests will no longer be permitted to swim in the feature pools after Hotel Pool Drowing Riskshours. Disney plans to install fences around any of those pools that are not already gated, a process that will begin in the coming months as hotels roll through their regular renovation cycles…(the move follows) the death of 13-year-old Anthony Johnson, who was pulled from a pool at Disney’s Pop Century Resort at about 9:30 p.m. on March 10…(he) died two days later at Florida Hospital Celebration…”

Walt Disney World says it will begin stationing lifeguards at its largest hotel pools during all operating hours and then locking them down overnight, six months after a young boy drowned while a pool was unguarded. Disney says its largest and most popular “feature” pools will begin opening at either 7 a.m. or 9 a.m. and closing at 11 p.m.

Only smaller and unguarded “quiet” pools at some hotels will remain accessible at all hours. Disney has about two dozen hotels and time-share resorts across its sprawling property.

“These changes make it easier for guests to understand when our pools are open and when a lifeguard is present,” Disney World spokeswoman Bernadette Davis.

Disney would not say whether a specific event triggered the move. Though that pool was open from 7 a.m. until 11 pm., lifeguards were only on duty from 10 a.m. to 8 p.m. Disney said it had posted signs warning that guests who chose to swim while the pool was unguarded did so at their own risk.

For more:  http://articles.orlandosentinel.com/2013-09-26/business/os-disney-locking-swimming-pools-20130926_1_walt-disney-world-pools-lifeguards

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by | September 4, 2013 · 8:35 am

Hospitality Industry Legal Issues: Restaurants Beginning To Replace “Tipping” With Surcharges Or Higher Menu Prices In Response To “Wage Violation Lawsuits”, Cultural Changes

 “…Front-of-house workers are suing one respected restaurant after another, including Dovetail, last month, accusing them of playing fast and Hospitality Industry Wage Violation Lawsuitsloose with the laws on tips. The charges include sharing tips with workers who aren’t eligible for them and making tipped employees spend too much time on what is called sidework, like folding napkins between meals…One such lawsuit was settled for more than $5 million. Some owners now think they can avoid the suits by eliminating tips…”

“…Another change is cultural. The restaurant business can be seen as a class struggle between the groomed, pressed, articulate charmers working in the dining room and the blistered, stained and profane grunts in the kitchen. The rise of chefs that are also owners has brought a few of the grunts to power. But as the average tip has risen to 20 percent or so from 15 percent, the pay for line cooks, dishwashers and others has stayed low…”

“…The self-interest calculation (for servers) may be different now. Credit card receipts and tougher oversight have virtually killed off unreported tips…”

Sushi Yasuda joins other restaurants that have done away with tips, replacing them with either a surcharge (Atera and Chef’s Table at Brooklyn Fare in New York; Next and Alineain Chicago; Coi and Chez Panisse in the San Francisco Bay Area) or prices that include the cost of service (Per Se in New York and the French Laundry in Healdsburg, Calif.).

These restaurants are numerous enough and important enough to suggest that a tip-reform movement is under way. On the other hand, they are few enough and exceptional enough to suggest that the movement may remain very small, and move very slowly.

Americans have stuck with tipping for years because all parties thought it worked in their favor. Servers, especially in restaurants from the mid- to high-priced, made good money, much of it in cash, and much of that unreported on tax returns. Owners saved on labor costs and taxes. And customers generally believed that tips brought better service.

For more:  http://www.nytimes.com/2013/09/04/dining/leaving-a-tip-a-custom-in-need-of-changing.html?pagewanted=all&_r=0

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

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by | September 2, 2013 · 8:00 am

Hospitality Industry Employment Issues: “Becoming A Resume Lie Detector” From HospitalityLawyer.com

HospitalityLawyer Lodging and the ADA Webinar

Hospitality Industry Resume Lie Detection-page-001

Hospitality Industry Resume Lie Detection-page-002

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by | August 31, 2013 · 8:15 am

Hospitality Industry Insurance Update: California Restaurant Employee Injured By Co-Worker’s Prank Entitled To Workers’ Compensation Only; Court Dismisses Lawsuit Against Employer

 “…The waiter received workers’ compensation benefits and sued his employer…The court explained that even if the exception extended to an workers compensation insuranceassault by a “managing representative” the waiter did not show that the lead cook was a managing representative. The lead cook did not exercise general discretionary power of direction and control over the restaurant business or even the kitchen. At most, she made decisions regarding the kitchen work in the evenings…The California Court of Appeal dismissed the suit, finding that workers’ compensation held his exclusive remedy…”

A pizza cook at a restaurant heated a pan before placing a pizza on the pan for a waiter to bring to a customer. Because the pizza pans were generally kept cool, the waiter picked up the pan with his bare hand. When he did so, he screamed and dropped the pan. He suffered serious and permanent burn injuries.

The waiter acknowledged that before his burn injury there was substantial horseplay among the restaurant employees. The employees routinely engaged in practical jokes. He claimed that after he burned his hand he saw the lead cook and other employees laughing.

The court rejected the waiter’s argument that exceptions to the exclusivity provision applied. He did not show that the employer committed a physical assault or had any involvement or knowledge of the incident or that the lead cook or pizza cook acted on the employer’s behalf.

The waiter also did not show that the employer or any managers were aware that the lead cook had any responsibility for his burn injuries or that she was involved in an assault toward him. A restaurant manager questioned employees about the incident but only learned that the pizza cook was responsible for placing the hot pan.

For more:  http://www.riskandinsurance.com/story.jsp?storyId=533354776

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by | February 6, 2013 · 4:21 pm

The “11th Annual Hospitality Law Conference” Welcomes Inaugural “Hotel Owner Management Summit” On Feb 11-13 In Houston, TX

2013 Hospitality Law conf-page-001

The 11th Annual Hospitality Law Conference, located at the Omni Houston Hotel, is the leading conference dedicated to hotel and restaurant legal, safety, and security issues. Since its inception, the conference has dramatically expanded in scope, uniting hundreds of industry executives and other thought leaders around the most pressing issues in the hospitality field. These exciting and educational sessions are crafted to bring attendees up to speed and anticipate future challenges.

2013 Hospitality Law Conference Brochure

Click on “Hospitality” to view Conference Brochure

This year, we are pleased to announce the inaugural Hotel Owner Management Summit (HOMS) that will be co-located at the Hospitality Law Conference (HLC) on February 11, 2013. The HOMS features three tracks that include the New Hotel Development, Management Agreements, and Hotel Investments Boot Camp. With new hotel development on the rise again, this is a great opportunity for owners, brokers, developers, management companies, lenders, receivers, asset managers, and attorneys to converge and discuss the latest trends and best practices. Lawyers learn about the financial aspects of deals and the financial experts have a better understanding of the legal and compliance aspects.

The Conference provides intensive education and exceptional networking among legal, development, risk, finance, HR and operations. (CLE, CPE, HRCI and AH&LA EI credits are available for attendees.)

Conference Schedule-at-a-Glance

February 11th Pre-Conference Workshops

  • The Convergence of Risk Management, Legal Compliance, and Loss Prevention
  • Restaurant and Hotel Corporate Counsel

February 11th Hotel Owner-Management Summit New Hotel Development

  • Management Agreements
  • Hotel Investments Boot Camp

February 12th-13th Hospitality Law Conference General Sessions

  • Lodging
  • Human Resources & Labor Relations
  • Food & Beverage

Register today to attend the conference! Further conference information can be found at http://www.hospitalitylawconference.com/. Please contact Janet Le at janet@hospitalitylawyer.com or call us at 713-963-8800 for additional inquires.

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by | December 4, 2012 · 8:02 am

Hospitality Industry Legal Risks: Kentucky Restaurants Sued By Cities For "Multiple False Alarms"; Thousands Of Dollars In Unpaid Fines

“…The city has filed 37 lawsuits in recent weeks — with at least 13 more pending — against the most egregious offenders, seeking thousands of dollars in unpaid fines and hoping to send a message about fixing alarms that False_Alarmswaste police time and cost taxpayer dollars…”

More than 40 times since 2008, Louisville Metro Police Department officers have made emergency runs to the Taco Bell on East Broadway, only to find they were responding to a false alarm.

Under a policy enacted in June 2005 that aims to crack down on residents and businesses who have multiple false alarms, the city has fined the Taco Bell — repeatedly — up to $500 per false alarm.

But the restaurant, like some others, has not paid its fines, which now total $10,700, according to city records.

Before police began charging fees for false burglary and hold-up alarms in 2005, officers were responding to more than 40,000 false alarms a year, Gibson said. Since then, that number has fallen dramatically, with less than 20,000 false alarm runs through October of this year.

For more:  http://www.courier-journal.com/article/20121203/NEWS01/312030096/City-sues-collect-false-alarm-fines?odyssey=nav|head

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