Tag Archives: Restaurants

Hospitality Industry Legal Risks: Missouri Restaurant Owes Six “Undocumented Alien Workers” $450,000 In Back Pay And Penalties; Court Rules “Federal Labor Law Trumps Federal Immigration Law”

“…The court held that “aliens, authorized to work or not, may recover unpaid and underpaid wages” under rights granted by the Fair Labor Hospitality Industry Wage Violation LawsuitsStandards Act…The appellate judges said that “numerous district courts, including the one in this case, and the secretary of labor all agree: Employers who unlawfully hire unauthorized aliens must otherwise comply with federal employment laws…”

In a case that pit U.S. labor law against immigration law, a panel of federal appellate judges has ruled that six undocumented workers are owed about $450,000 in back pay and penalties for uncompensated work at a Kansas City restaurant — the popular Jerusalem Cafe in Westport. The 8th Circuit U.S. Court of Appeals said this week that federal labor law trumped federal immigration law in this instance.

The court ruled that a former owner and former manager of Jerusalem Cafe could not argue that the workers were in the United States illegally and therefore lacked standing to sue for unpaid wages.

That argument, the appellate panel said, is akin to saying that Al Capone couldn’t have been prosecuted for tax evasion because his earnings were illegally made. (The infamous mobster was jailed on such charges.)

The lawsuit said five of the six workers had each worked 77 hours a week at the restaurant. It said the workers were known to lack official work authorizations and were paid in cash on a weekly basis.

The case attracted national attention, prompting the U.S. secretary of labor to file a brief on behalf of six workers who were employed at the restaurant in the period spanning 2007 to 2010.

Read more here: http://www.kansascity.com/2013/08/01/4383369/court-says-undocumented-workers.html#storylink=cpy

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

Hospitality Industry Legal Risks: New Jersey Restaurant Group Fined $500,000 For “Substituting And Selling Cheap Liquor For Premium Brands”

“…The fine includes $400,000 for the violations and $100,000 to cover investigative costs…at one of the 29 businesses, a mixture that included rubbing alcohol and caramel coloring was sold as scotch. In another, premium liquor bottles were refilled with water that was not even clean. Restaurant Liquor Sales Liability 1The state never identified which restaurants or bars those were…The franchisee also faces a lawsuit in state court by two women who claim Briad had instituted a uniform policy to substitute cut-rate liquor for premium brands for during at least a year, in violation of the New Jersey Consumer Fraud Act. It seeks reimbursement for all customer losses and punitive damages of three times the price of each drink…”

An operator of TGI Fridays restaurants in New Jersey has agreed to pay a $500,000 fine for serving customers cheap booze when they paid for top shelf. Acting Attorney General John Hoffman said Wednesday that the fine levied against Livingston-based Briad Group, as a result of an investigation dubbed Operation Swill, should send a message to every bar and restaurant in the state that customers should always get what they pay for.

Under terms of the settlement, Briad agreed not to contest charges that eight of its restaurants were selling customers cheap substitutes in place of premium alcohol. It also agreed to employ a state-appointed monitor through June 14 to ensure its restaurants and employees are in compliance.

As long as there are no further violations during that period, the businesses will avoid five-day suspensions of their liquor licenses, the attorney general said.

For more:  http://www.bostonglobe.com/business/2013/07/31/tgi-fridays-fined-for-switching-liquor/tFC5CnrWxLByqT35hxVI6J/story.html

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Hospitality Industry Legal Risks: Texas Restaurant Sued For $1 Million By Customer Who “Slipped And Fell On Peanut Shells” On The Floor; Claims “Unreasonably Dangerous Condition”

“…The lawsuit states that (the plaintiff) slipped and fell in the restaurant on March 19, and that the restaurant and employees knew or should Hospitality Industry Injury Lawsuitshave known that the peanut shells on the floor created an unreasonably dangerous condition…(she) is suing for damages for physical pain, mental anguish, physical impairment, medical expenses, lost wages, loss of earning capacity and court costs…”

A Harlingen woman is seeking $1 million after she claims she slipped and fell on peanut shells on the floor of a local restaurant. Amelia Tijerina has filed a civil lawsuit arguing that Texas RoadHouse Inc. is responsible for the peanut shells on the restaurant’s floor. RoadHouse has denied Tijerina’s allegations and demands proof.

Tijerina sued the restaurant in state district court, but Texas RoadHouse moved the lawsuit to federal court, according to court records.

She also maintains that the restaurant or employees should have warned her about the peanut shells or should have removed them.

She is presented by Attorney Salvador Garcia and Jorge A. Green with The Green Law Firm of Brownsville.

Attorneys Karl W. Koen, Robert J. Collins, and Rachel R. Vulpitta of Gauntt, Earl, Binney & Koen, LLP of Dallas, who represent Texas RoadHouse, contend that it was Tijerina’s own actions or omissions that caused or contributed to her injury.

For more:  http://www.valleymorningstar.com/news/local_news/article_3296dd56-f669-11e2-a706-0019bb30f31a.html

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

Hospitality Industry Safety Issues: Private-Sector Workplace Injuries Fall 30% From 2003-2011; Workers’ Compensation Claims And Premiums Decline As Safety Progams Pay Off

“…For private-sector employers, the number of injuries involving missed work days, job restrictions or transfers to different chores dropped to 1.8 per 100 full-time workers in 2011 from 2.6 in 2003…safety experts say OSHA crackdowns and more corporate focus on OSHA Safety And Health It's The Law-page-001reducing hazards helped cut the injury rate. Also, legislation in many states has made it harder to qualify for workers’ compensation, which has reduced the number of claims…a benefit of the decline is that the average cost of workers’ compensation per $100 of payroll fell to $1.79 last year from $2.67 in 1994…”

About 100 federal and state court cases involving retaliation for workers’ compensation claims were decided last year, roughly double the number a decade before, estimates Lex Larson, president of Employment Law Research Inc. Some lawyers attribute the increase to growing awareness among workers that they can seek redress in court.

While employers say the decline in injuries shows that safety programs are paying off, unions and plaintiffs’ lawyers counter that companies sometimes discourage workers from speaking up.

The U.S. Occupational Safety and Health Administration is taking a tougher line with employers and says too many injuries go unreported. The agency last year reminded employers that federal law bars them from retaliating against employees for reporting injuries. It also warned employers against offering bonuses or prizes for meeting safety goals if those incentives deter workers from reporting injuries.

For more:  http://online.wsj.com/article/SB10001424127887323664204578610133657300940.html

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Filed under Claims, Health, Injuries, Insurance, Labor Issues, Management And Ownership, Risk Management

Hospitality Industry Property Risks: Nebraska Restaurant Fire Starts Near Cooler’s Condenser, Spreading Upstairs; Heavy Heat Results In Complete Loss

“…the blaze most likely started near the cooler’s condenser which was under repair and then spread to the NAPA auto store next door, only causing smoke damage while resulting in a complete loss for the restaurant…when the cook went to open the door, flames shot out…the whole Restaurant Fire Risksentire upstairs was probably involved in heavy fire. Made entry and attempted to extinguish that and due to extreme heat (the firefighters) were driven out and changed to a defensive mode…”

An iconic family restaurant in McCook destroyed by fire late Saturday evening must now decide how to move forward. Fullers Restaurant was more than a business, it was a part of the community and something everyone will miss.

“Tried to put it out with a hand extinguisher and then called the fire department and by the time they got set up and everything it was a little later,” said Val Fuller, the owner.

Fuller’s Restaurant employees recount the scene that led to the building’s evacuation late Saturday evening when the McCook Fire Department responded to a call for a structure fire shortly after 8:40 PM. “All of the employees, all of the customers were out and across the alley from the structure,” said Chief Marc Harpham with the McCook Fire Department.

“It was our supper hour, so we had a fairly decent crowd in there and we told them what the situation was and they left,” said Thayer.

Now, owner Fuller must decide how to move forward after losing the restaurant his parents started in 1946.

For more:  http://www.knopnews2.com/index.php?option=com_k2&view=item&id=8332:more-than-a-restaurant&Itemid=105

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Filed under Claims, Fire, Insurance, Maintenance, Management And Ownership, Risk Management, Structural Damage

Hospitality Industry Technology Solutions: “Smarphone Payment Apps” Allow Customers To Pay For Food And Services With Phones Or Mobile Wallets

The Carlisle & Gallagher Consulting Group forecasts that within five years half of smartphone owners will prefer to pay for their gas, food, Hospitality Industry Smartphone Paymentsgadgets and other consumer goods with phones and mobile wallets…By one count, perhaps 280 digital wallets or more have sprung up or are in development around those various technologies. Some retailers, notably Starbucks, have built their own apps for mobile payments.

Mark Logan ordered lunch at Mildred’s Coffeehouse & Bistro in the Crossroads Arts District and stepped to the register to pay. No cash. No check. No plastic. Logan paid with his smartphone. He had previously loaded it with his debit card information, using an app called Square Wallet, and snapped his own picture. To make the payment, Square Wallet sent Logan’s picture to the iPad that Mildred’s uses for a register. The iPad tied his tab to his photo.

The barista, seeing Logan, tapped his photo from among several customers on the screen and told Logan the payment was going through. A second tap — technology took care of the rest.

A recent survey of smartphone users found that half had never heard of the idea of a digital wallet, let alone downloaded and used one.

And few stores or restaurants take them.

All the same, you may be using one soon. Money is making a dash from pockets to smartphones thanks to digital wallets like Lemon, Isis, LevelUp and others.

Read more here: http://www.kansascity.com/2013/07/20/4357393/digital-wallet-apps-unfold-in.html#storylink=cpy

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

Hospitality Industry Safety Solutions: Hotels And Restaurants With Ten Or More Employees Must Maintain A Written “Fire Prevention Plan” That Complies With OSHA Standards

OSHA Emergency Exit Route Facts-page-001

OSHA Fire Prevention Plan

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Filed under Fire, Guest Issues, Health, Injuries, Labor Issues, Liability, Maintenance, Risk Management, Training

Hospitality Industry Health And Safety Compliance: OSHA To Increase Inspections And Enforcement Of “Emergency Exit Routes” Requirements

OSHA Emergency Exit Route Facts-page-001

Retailers and hospitality entities (as well as other employers with multiple establishments) should be particularly attuned to this issue for several reasons. First, even without this directive from OSHA’s national office, year after year, 1910.36 continues to be one of the five standards most frequently cited against employers in these industries. Second, whereas in most workplaces, exits and exit routes are intended for egress of employees only, in retail and hospitality locations, emergency exits are there for both employees and patrons, which increases the scrutiny on the issue. Third, OSHA has launched at least two special emphasis enforcement programs (one in Delaware and another in Pennsylvania) focused on retail establishments, and looking at egress issues as one of the top focus areas.
Finally, although initial fines for egress-related violations are typically only $2,000 or less, OSHA now treats related workplaces within a corporate family as one workplace for purposes of Repeat violations, which carry penalties up to $70,000 per violation. This has been the primary weapon OSHA has used to drive up penalties against employers with multiple workplaces, like retailers and hospitality employers. By actively pursuing more Repeat violations, OSHA is issuing much higher penalties. Over the past four years, OSHA has increased the number of Willful and Repeat violations it has issued by more than 200%.

OSHA Emergency Exit Route Facts-page-001

OSHA Emergency Exit Route Facts-page-002

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Filed under Guest Issues, Health, Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Insurance And Legal Solutions: “Live Webinar” On “Lodging And The ADA” Presented By HospitalityLawyer.com On July 17

HospitalityLawyer Lodging and the ADA WebinarHospitalityLawyer Lodging and the ADA Webinar 2HospitalityLawyer Lodging and the ADA Webinar 3

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Hospitality Industry Legal Risks: California Labor Commissioner’s “Wage Claims Unit” Aggressively Investigating Wage Theft Claims And Assessed Record Penalties Of $51Million In 2012; Retaliation Cases Pursued Immediately

“…the wage claims adjudication unit — the largest unit within the labor commissioner’s office that handles more than 35,000 claims a year brought by workers alleging they were denied proper wages — in 2012 heard wage claims within an average of 179 days from Hospitality Industry Wage Violation Lawsuitsthe date of filing, the shortest amount of time since 2008…If employees are retaliated against for cooperating with the state in a workplace investigation, the agency investigates those cases immediately…”

The California Labor Commissioner’s office last year assessed more than $51 million in civil penalties against businesses flouting labor laws, making for record-breaking results that have much to do with the office’s move away from conducting broad employer sweeps to instead zeroing in on bad actors, the agency’s chief told Law360 on Thursday.

The agency, led by State Labor Commissioner Julie Su since April 2011, focuses primarily on adjudicating wage theft claims, inspecting workplaces for wage and hour violations, and investigating retaliation complaints, and the agency’s report in May revealed that the office’s increasingly targeted efforts are paying off.

The agency’s bureau of field enforcement in 2012 uncovered more than $16 million in unpaid minimum and overtime wages owed to workers in the state, more than any previous year on record, and the more than $51 million in total civil penalties assessed in 2012 marked a 150 percent increase from 2010.

But an even more telling finding is how much the bureau has improved on workplace inspections resulting in civil penalty citations. Out of every 10 inspections, eight led to citations last year, resulting in a citation rate of 80 percent, a big increase from an average citation rate of 48 percent between 2002 and 2010, according to the report.

For more:  http://www.law360.com/articles/453869/calif-labor-chief-sharpens-focus-on-workplace-violators

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