Tag Archives: Legal Issues

by | March 17, 2012 · 8:19 am

Hospitality Industry Legal Risks: Latest Americans With Disabilities Act (ADA) Revisions Reflect "Removal Of Barriers"; Restroom Floor Space And Counter Height Are Areas Of Concern

  • Toilet clear floor space: The 1991 standards required 48 inches wide of clear floor space around a toilet. The new 2010 standards require 60 inches of clear floor space around the toilet. Things such as grab bars, toilet paper dispensers and seat protector dispensers are allowed to hang over into that space, but more obtrusive items such as urinals or cabinets are not.
  • Lavatory comparable counter space: Accessible rooms are required to have counter space comparable to that of nonaccessible rooms. “Various people have different needs for countertop space,” Anderson said. “My wife has the need for a lot of countertop space, and having that small little room around the accessible sink really doesn’t meet her needs. So it’s not comparable.”
  • Sales and service counters: The 1991 standards allowed for auxiliary sales and service counters built on to existing desks. The new 2010 standards require accessible counters of full, standard depth—not just ledges or other auxiliary spaces.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7719/New-ADA-changes-could-prove-costly

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by | March 15, 2012 · 8:23 am

Hospitality Industry Legal Risks: California Hotel Owners Compliance With Americans With Disabilities Act (ADA) "Pool Lift Regulations" Is Effective March 15; Vulnerable To "Unruh Civil Rights Act" Violation Lawsuits

“…California-based businesses should be particularly worried.  The Unruh Civil Rights Act, itself a wellspring for abusive litigation, incorporates the ADA by reference, making any violation of the ADA also a violation of Unruh…Unruh has more teeth than the ADA—$4,000 per violation, regardless of intent, plus attorney’s fees…”

 The Department of Justice granted the industry’s call for a clarification: But it was not the answer they wanted. All 300,000 public pools in the United States must install a permanent fixed lift. The deadline for compliance is tomorrow, March 15. Call it “Poolmageddon.”

There is no way all 300,000 pools can install permanent lifts by Thursday. There simply are not enough lifts in existence or enough people who know how to install them, according to industry spokesmen. Plus, each lift costs between $3,000 and $10,000 and installation can add $5,000 to $10,000 to the total.

The Administration has assured the industry that it does not plan to enforce the new guidelines right away.  But the ADA contains a private enforcement mechanism, empowering private attorneys to bring suit immediately, collecting attorney’s fees from violators.  As the article mentions, trial lawyers contributed over $45 million to Obama’s campaign.

For more:  http://ordinary-gentlemen.com/timkowal/2012/03/15/new-ada-guidelines-expose-pool-operators-to-private-lawsuits/

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by | March 4, 2012 · 7:39 am

Hospitality Industry Employee Risks: Labor Department Orders South Dakota Hotel To "Pay Back 72 Foreign Workers" For "Impermissible Recruitment Fees"

“…since 2009 Labor Department rules have required businesses to agree it “has contractually forbidden any foreign labor contractor or recruiter whom the employer engages in international recruitment of H-2B workers to seek or receive payments from prospective employees.”

“…Global Employment Agency required impermissible payments from prospective employees from $530 to $1,500…”

The Labor Department announced it had ordered Custer State Park Resorts to pay back $93,000 to its 72 foreign workers hired for the 2010 tourism season. The payments covered impermissible recruitment fees and unpaid overtime. The department fined Custer State Park Resorts an additional $65,000 in civil penalties, which it is appealing. Each year, Custer State Park Resorts hires about 375 to 400 employees, with fewer each year being guest workers, Schmaltz said.

Schmaltz said the unpaid overtime resulted from confusion in the guest worker rules. The bulk of the Labor Department fine Schmaltz said – roughly $60,000 – is repayment for fees taken by Kaubisch.

“We relied too heavily on this vendor who was supposed to know the laws and regulations,” Schmaltz said. “We put too much faith into what Scott knew.”

Kaubisch said he charged the fees to workers “to take care of them.” He took phone calls at all hours, arranged rides and helped secure housing for guest workers. It wasn’t until the investigation last spring, Kaubisch said, that Labor Department officials told him collecting fees was illegal.

Read more: http://rapidcityjournal.com/news/employers-ordered-to-pay-back-foreign-staff/article_1eea0e92-65a9-11e1-886a-001871e3ce6c.html#ixzz1oA6hDlvr

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by | March 3, 2012 · 6:56 am

Hospitality Industry Social Media Risks: Hotel Management Faces Legal Issues With Regard To "Relationships" Of Employees Discovered On Facebook

While platforms such as Facebook and Twitter present new opportunities for training and engaging with employees, they also bring new challenges and wrinkles to the age-old workplace policies and practices…(such as)… two of your most exemplary employees who work the front desk..(who)… one day via a Facebook update… entered into a relationship despite your hotel’s strict policy against it…”

“…A user who posts something on Facebook without the proper security filters does so with no expectation of privacy…”

The above scenario was one of many social-media quandaries presented during a table-top summit Tuesday at the 6th Annual HR in Hospitality Conference & Expo.

In this situation, you could fire Johnny, according to Gregg Gilman, an attorney with New York-based Davis & Gilbert LLP. A user who posts something on Facebook without the proper security filters does so with no expectation of privacy, he said. Thus, you treat the case as if you discovered the illicit relationship in one of the “old-fashioned” ways, such as hearing about it from another employee or observing certain tip-offs. 

“You have this new medium, but the same old rules apply,” Gilman said. “… If you operate by those rules, you’re going to be OK.”

Robert Mellwig, VP of HR for Englewood, Colorado-based Destination Hotels, agreed. “We don’t want to get distracted around the technologies,” he said. “… It could easily happen in any other form.”

Where an employer might get into trouble is if they “friend” an employee on Facebook under false pretences for the sole purpose of uncovering activity that runs counter to workplace policy, Gilman said.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7665/Social-media-brings-new-legal-issues-to-hotels

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by | February 19, 2012 · 7:32 am

Hospitality Industry Employment Risks: California Hotel Owners Settle "EEOC Disability Discrimination Lawuit" Brought By Autistic Desk Clerk

“…the hotel’s owner, signed a three-year settlement agreement that will pay the clerk $125,000—and donate $7,500 to Partnerships with Indus­try, a San Diego-based nonprofit that provides employment support to people with disabilities…”

The EEOC and the Comfort Suites Hotel in Mission Valley have agreed to settle a lawsuit filed on behalf of an autistic desk clerk who sought state assistance to perform his job but was fired instead. It’s a case that shows how the threat of litigation can sometimes result in greater good.

The man asked California to provide a state-sponsored job coach. Even though the job coach’s serv­­ices were free, the hotel wouldn’t allow the coach to help the clerk. Eventually it fired the clerk, despite previous work experience showing that autism didn’t prevent him from being a solid employee.

After the clerk filed an EEOC disability discrimination suit, the two sides agreed to settle.

But Tarsadia didn’t stop there. In addition to totally revamping its reasonable accommodation procedures and policies, it will hire a consultant to train all employees about disability rights and reasonable ac­­­­com­­modation procedures. The consultant will hold supervisors and managers accountable for their actions in regard to disabled employees.

For more:  http://www.businessmanagementdaily.com/29400/socal-hotel-steps-up-after-firing-autistic-employee

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by | February 4, 2012 · 6:49 am

Hospitality Industry Legal Risks: Appeals Court Allows "Facebook Photos" As Evidence In Denying Man's Claim For Additional Compensation In Workers' Compensation Claim

“…the appeals court agreed with previous rulings, which denied a request for additional treatment after diagnostic tests showed “no recurrent hernia and surgery to explore the scrotum” and saw no abuse by the courts in allowing the photos…In denying Clement’s request for additional compensation and treatment, the court ruled in favor of the use of Facebook photos as a evidence…”

An appeals court  has ruled that photos on Facebook and Myspace of a man “drinking and partying” can be used as evidence to deny him further workers compensation claims.

At the center of the suit is  Zackery Clement, who suffered a hernia  March 12, 2009 after a refrigerator fell on him while on the job at Johnson’s Warehouse Showroom in Pine Bluff,  Ark.  Clement, who was compensated for medical expenses and received temporary total-disability benefits for more than a year, was seeking an extension of benefits following three surgeries as a result of the injury.

An administrative law judge and the Arkansas Compensation Commission denied Clement’s application for additional benefits, and Clement, 27, was hoping the Arkansas Court of Appeals would reverse the ruling. He argued that he needed further medical treatment and disability payments because of “excruciating pain.”

For more:  http://abcnews.go.com/blogs/business/2012/02/court-okays-facebook-party-photos-in-workers-comp-claim/

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by | February 2, 2012 · 6:46 am

Hospitality Industry Legal Risks: Texas Hotel Employee Files "Trip-And-Fall Lawsuit" For Negligence In "Failing To Secure Floor Covering During Construction"

 “…Gonzales was working at the Holiday Inn on Walden Road when she tripped over a loose floor covering placed in the area where ISC was contracted to perform repair work…Gonzales is suing for her past and future mental anguish, pain, medical expenses and lost wages, plus exemplary damages…”

A trip-and-fall lawsuit, which was slated to be tried in December, will now be tried in May. Holiday Inn employee Carol Gonzales filed suit against Insurance Services Construction on Oct. 20, 2010, in Jefferson County District Court, alleging the company negligently failed to securely fasten a floor covering while performing work at the hotel.

International Catastrophe Solutions was later added as a defendant, court papers say. On June 22 Gonzales filed a motion for continuance, asking that the case be continued “for a couple of months based on the fact that ICS has still not” officially answered the suit, the motion states.

A hearing on the matter was held Aug. 22. Judge Bob Wortham, 58th District Court, decided to take no action on the motion. However, on Nov. 16 an amended discovery control plan order was entered in the case, bumping the case from the court’s December docket to the May.

For more:  http://www.setexasrecord.com/news/241507-trip–fall-trial-bumped-to-may

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by | January 30, 2012 · 9:07 am

Hospitality Industry Legal Risks: Hotel Owners And Management Will Face Numerous Compliance And Regulatory Issues In 2012

“The biggest issue hotel managers face in the coming year vis-à-vis the law is compliance with the myriad applicable statutes, rules and duties owed…”

A hotel faces potential legal consequences for all of the following:

  • negligence in the maintenance of its premises
  • failure to comply with the Fair Labor Standards Act (minimum pay, overtime pay, equal pay, child labor)
  • discrimination against employees based on minority status
  • denial of services to guests perceived as illegal discrimination
  • contending with internet reviews, disagreements with a franchisor
  • overstepping bounds with unions
  • misapplying tip pools
  • eradicating bed bugs and other pests
  • dram shop violations
  • food issues
  • security concerns
  • insufficient insurance
  • trademark and copyright violations
  • securing and maintaining necessary business licenses
  • tax obligations
  • sanitation issues in spas
  • contract disagreements with suppliers
  • guests’ rights to privacy
  • SEC mandates
  • Managing employees to ensure compliance with all of the above, and much more.

For more:  http://www.hospitalitynet.org/news/154000320/4054640.html

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by | October 19, 2011 · 8:20 am

Hospitality Industry Social Media Risks: Hotel Management Must Asses Legal Risks Related To All Advertising Media Including Trademarks, Copyrights, Privacy And Data Security

“…from a risk-management and legal perspective, social media public relations, marketing and advertising efforts frequently present legal risks that are not always fully appreciated either by managers and directors, or those charged at the operations level with implementing the plans…”

The potential legal risks are wide-ranging and cover areas such as trademarks and copyrights, rights of publicity and privacy, data security, labor and employment issues, and the like. They also include compliance with the rules and regulations of state and federal agencies, such as the Federal Trade Commission.

  •  The potential legal risks are wide-ranging and cover areas such as trademarks and copyrights, rights of publicity and privacy, data security, labor and employment issues, and the like.
  • There is no reason not to proactively review the avenues of social media and begin the process of developing guidelines to mitigate risk. 
  • Fundamentally, a significant number of arising issues are no different than they are in traditional advertising mediums and require nothing more than policy tweaking.

For more: http://www.hotelnewsnow.com/Articles.aspx/6715/How-to-manage-legal-risks-of-social-media

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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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