Tag Archives: Restaurants

Hospitality Industry Legal Risks: Michigan Restaurant Group Settles “Class-Action Lawsuit” Alleging “False Advertising Of Halal Food Items”

“…(plaintiff’s) attorney alleged that after the restaurant ran out of Halal chicken, it sold non-Halal chicken…an investigation found that the restaurant had sold non-Halal food masquerading as Halal food “on Hospitality Industry Class Action Lawsuitsmany occasions.” The two filed a class action lawsuit in Wayne County Circuit Court in November 2011…”

McDonald’s and one of its franchises agreed to a $700,000 settlement in a lawsuit claiming that it falsely advertised some of its food as halal. Ahmed Ahmed, a Muslim man from Dearborn Heights, alleged that the chicken sandwich he ordered from the McDonald’s on Ford Road in Dearborn in September 2011 did not meet Islamic dietary standards, despite the franchise’s advertisements that it sells Halal chicken.

McDonald’s and Finley’s Management Co, which owns the franchise, agreed on January 18 to pay the $700,000, which will be split between Ahmed, his lawyers, a health clinic in Detroit and the Arab American National Museum in Dearborn. McDonald’s and Finley’s deny any liability, but say the settlement is in their best interest.

For more:  http://michiganjournal.org/2013/01/29/dearborn-mcdonalds-makes-settlement-in-non-halal-chicken-sandwich-lawsuit/

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Filed under Claims, Labor Issues, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Health Risks: Studies Show Restaurants Use Cheaper Fish And Mislabel As Red Snapper And White Tuna; Cheaper Fish Substitutes Are Higher Risks For Food Poisoning

In addition to permitting aquaculture operations to use drugs that are banned by other countries, and permits the sale of species that other countries don’t, the U.S. only minimally oversees imports. A Johns Hopkins study FDA food inspectionsshows that the U.S. inspects a miniscule 2 percent of the seafood that comes into the country. By comparison, Japan inspects 18 percent and the European Union inspects 50 percent.

If you’re a fish eater and you keep an eye on the news, you already know that the “red snapper” special at your local restaurant is probably mislabeled. For years, restaurants have been substituting cheaper, more common species like tilapia for the famed red snapper. Last year, however, DNA analyses showed that the problem is more widespread than anyone suspected: In Los Angeles, New York, New Jersey and Connecticut, studies showed that 100 percent of restaurants were serving cheaper fish and mislabeling them as red snapper. Similarly, white tuna, yellowtail, Dover sole and wild-caught salmon were also often substituted for other species.

Most of the time, price gouging is the only harm that comes from such mislabeling. Sometimes, however, the danger might be a bit higher. Recently, the U.S. Pharmacopeial Convention noted that much of the alleged “white tuna” served in sushi restaurants may actually be escolar, also known as “snake mackerel.” A cheap fish that may cause severe food poisoning with, shall we say, explosive results, escolar is banned in some countries.

For more:  http://www.dailyfinance.com/2013/01/26/fish-food-poisoning-seafood/

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Filed under Food Illnesses, Guest Issues, Health, Liability, Maintenance, Risk Management, Training

Hospitality Industry Legal Risks: “Severe Food Allergies” Now Classified As A Disability Under ADA Law

“…the agreement says that food allergies may constitute a disability under the Americans With Disabilities Act, if they are severe enough. The definition was made possible under 2009 amendments to the disability law Americans wih disabilities actthat allowed for episodic impairments that substantially limit activity…restaurants who post their ingredients can help those with allergies decide whether they even want to buy the food…”

The new law that now classifies severe food allergy as a disability applies to those severely allergic to gluten, peanuts, shell fish, corn, wheat, and other food allergens. What it translates to is of interest to hospitals, colleges, and other institutions to offer food and put labels on those buffet bars letting people with severe food allergies know what’s in the food. The settlement relates to the disability law. Severe, not mild food allergies can be considered a disability under the law.

A public restaurant also could be liable for a lawsuit by a customer if the business ignored a customer’s request for certain foods. But if the customer had the courage to eat there, even out of spite, and that person became ill knowing the restaurant brushed off the one customer’s request for serving food to which the customer isn’t allergic, or food not containing the ingredient responsible for the severe allergy, that case might be harder to argue because the restaurant might say the customer became sick from food eaten elsewhere.

The restaurant would have to know the customer well enough to have served food for that particular customer enough times that the cooks and food handlers or servers would know the allergy requests of that particular customer. The problem with this argument is that turnover in restaurant employees would throw the customer a curve ball so to speak, since new food handlers or cooks wouldn’t know the customer by face or name unless they were told and remembered or saw where the lists of familiar customers with allergies were posted.

For more:  http://www.examiner.com/article/federal-disabilities-law-may-help-people-with-severe-food-allergies

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Filed under Food Illnesses, Guest Issues, Health, Liability, Management And Ownership, Training

Hospitality Industry Theft Risks: Pennsylvania Restaurant Manager Charged With Stealing Over $160,000; Made “Unauthorized ATM Withdrawals, Credit Card Purchases”

“…a certified public accountant’s review found that (he) made a string of unauthorized ATM withdrawals, unauthorized credit card purchases and unauthorized check card purchases totaling $163,601 from the employee theftbusiness accounts of Cosmopolitan…in addition to dinner cruises and visits to a strip club, (he) allegedly spent the money on household items at a retail store…”

A former general manager of Cosmopolitan in Allentown allegedly stole $163,601 from the restaurant and spent it on things like dinner cruises and visits to a strip club.

Cosmopolitan opened in October 2010. Fortunato was hired in September 2010 and promoted to general manager about a month later, District Attorney Jim Martin’s office said today in announcing the charges.

Fortunato’s responsibilities included overseeing the daily operations of the restaurant, handling employee payroll, paying bills to suppliers and collecting receipts for the business.

Fortunato also was given check-signing authority for the restaurant’s various bank accounts and ATM/debit card account at Wells Fargo Bank, a Visa card, an American Express account and access to cash receipts at the restaurant, Martin’s office said.

His responsibilities included using any of the accounts, but only for operations of the restaurant, according to the district attorney’s office.

Last June, Cosmopolitan co-owner Myron Haydt was reviewing the restaurant’s financial records and found a series of suspected unauthorized purchases by Fortunato, according to the statement.

For more: http://www.lehighvalleylive.com/allentown/index.ssf/2013/01/former_manager_of_allentowns_c.html

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

Hospitality Industry Property Risks: New York Hotel And Restaurant Suffers “Significant Water Damage” After Frozen Pipe Bursts; $200,000 Damage From Third Floor To Basement

“…A water pipe had frozen and burst early Wednesday morning…the pipe was connected to the facility’s sprinkler system and the malfunction triggered a response from the Geneseo Fire Department…The pipe burst Hotel Water Damageon the third floor, pouring water into a guest room and working its way down to the basement. There was “significant damage” in several parts of the building including two parlors, dining rooms and guest rooms and spaces above and below the rooms…”

The Big Tree Inn, 46 Main St., remains closed after a water pipe burst on Wednesday, flooding several areas of the landmark building and causing significant damage from the third floor to the basement. Big Tree Inn will remain closed through Friday, but Scott is hopeful that at least part of the facility will be able to open some time during the weekend.

Scott estimated repairing the damage will cost $200,000 or more. The restaurant does have insurance.

Facility managers were alerted to a problem by a guest who reported hearing what was believed to be a small leak. An investigation revealed the bigger problem.

For more:  http://thelcn.com/2013/01/24/burst-water-pipe-causes-significant-damage-at-big-tree-inn/

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Filed under Claims, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Texas Restaurant Group Settles EEOC “Religious Discrimination Lawsuit” For $25,000; Female Employee Prevented From Wearing Skirt To Work

“…Fries Restaurant Management has  agreed to pay Ashanti McShan $20,000 for “mental anguish and non-wage damages” and an additional $5,000 in lost wages…The restaurant management company also EEOCagreed to post its policy against religious discrimination on employee bulletin boards in every Burger King it operates in the state of Texas…”

A Burger King in Texas has agreed to pay $25,000 to a Pentecostal womanwho wore a skirt to work, court documents state. The payment settles a lawsuit filed in August by the Equal Employment Opportunity Commission (EEOC) against Fries Restaurant Management, LLC, which owns and operates the Burger King in Grand Prairie, Texas. The store allegedly asked a teenage woman to leave work after she arrived in a skirt. The EEOC’s lawsuit against Fries alleged religious discrimination, which is a violation of Title VII of the Civil Right Act of 1964.

In addition, it vowed to hold trainings for managers on federal anti-discrimination laws for the next two years, according to the documents.

McShan was a senior in high school when she came to work at the Burger King wearing a skirt instead of the black pants that are part of Burger King’s uniform.

In August 2010, McShan asked to wear a skirt instead of the restaurant’s uniform pants. Burger King “assured her that she could wear a skirt to work,” the filing says.

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

Hospitality Industry Property Risks: New Jersey Restaurant Fire Starts In Basement, Causing Heavy Interior Damage; Renovation “Crawl Spaces And Voids” Help Flames Spread

“…the structure had been renovated a number of times, creating created many crawl spaces and voids thorough which the flames spread. That made it difficult for firefighters to put out the fire…the fire appeared Restaurant Fireto have started near a storage room in the basement, burning through the first floor and then extending to the attic…”

A Goffle Road restaurant may be temporarily shuttered after a three-alarm fire spread from the basement to the attic early Sunday morning, causing significant damage to the interior, the borough’s fire chief said. Local volunteer firefighters rushed to La Cantina Restaurant shortly after 12:40 a.m. on Sunday, after a passerby walked into Engine Company No. 3 and told them that the restaurant was on fire, Fire Chief Joseph Speranza said.

About 30 to 35 firefighters responded to the Mexican restaurant — less than a quarter mile from the firehouse — to find heavy smoke coming from the building, Speranza said.

Firefighters battled the main blaze for about an hour and forty-five minutes, but spent a good portion of the morning chasing hot spots, he said.

For more:  http://www.northjersey.com/hawthorne/La_Cantina_Restaurant_in_Hawthorne_might_be_temporarily_shuttered_after_fire.html

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Filed under Fire, Insurance, Maintenance, Risk Management

Hospitality Industry Employment Risks: Hotels And Restaurants Providing “Paid Sick Leave” Benefits Reduce Employee Illnesses, Work-Related Injuries And Turnover According To Latest Studies

“…it (is) better for an employee to call in sick, take care of their illness and not contaminate the other staff. The number of employees struggling to work while sick was drastically reduced. The H1N1 virus in 2009 Paid Sick Leave In Hospitality Industrydemonstrated the value of keeping sick employees out of the workplace…And best of all, according to the Centers for Disease Control, workers with paid sick leave are 28 percent less likely to suffer work-related injuries. People in construction, restaurants or hospitals who do physically demanding jobs are more likely to injure themselves (or someone else) if they are working while sick, weak and fatigued…”

The Bureau of Labor Statistics tells us that 39 percent of people employed in private industry do not have paid sick leave as a benefit.

And 81 percent of service workers earning $10.50 or less have no paid sick leave. These are the people behind the cash register, serving you food in a restaurant, cleaning offices and hotel rooms and handing you your ticket when you go out to see a movie.

The information comes from studies conducted by the Centers for Disease Control, the Bureau of Labor Statistics and the Women’s Institute of Policy Research study of San Francisco’s paid sick leave ordinance. Before San Francisco enacted its ordinance in 2007, the restaurants and mom-and-pop businesses fought hard to prevent it. They predicted the cost of paid sick days would put them out of business. In 2011 a detailed study was done and employers are happy their fears were not realized. There was no discernible increase in payroll costs.

Turnover decreased because employees didn’t need to change jobs to get paid sick leave. The city ordinance requiring paid sick leave leveled the field for all employers, and good employees stayed in place longer.

For more:  http://union-bulletin.com/news/2013/jan/19/sick-pay-benefits-employers-bottom-lines/

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

Hospitality Industry Employment Risks: Wisconsin Restaurant Settles EEOC “Sexual Harassment And Retaliation Lawsuit” For $41,000; Companies Must Take “Immediate And Effective Action To Stop It”

“The Supreme Court has held that when an employer learns of sexual harassment, it must take immediate and effective action to stop it…Employers who don’t protect their workers should know that the federal EEOCgovernment will enforce the national policy against sexual abuse in the workplace…retaliation complaints have been the fastest-increasing type of complaint filed with the EEOC over the past 10 years…”

A Merrill, Wis., restaurant will pay $41,000 and furnish other relief  under a consent decree entered by the federal court in a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

According to the EEOC’s suit (EEOC and Sherry L. Brown v. Merrill Pine Ridge LLC, et al., No. 3:11-cv-589), one of the cooks at New Pine Ridge restaurant, Shahi N. Selmani, created a sexually hostile work environment when he repeatedly made crude remarks to waitresses and grabbed their breasts.  The EEOC alleged that, despite the women’s complaints, restaurant owner Qemal Alimi did not stop Selmani’s harassment and instead fired some of the waitresses in retaliation for their complaints.

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964.  The EEOC filed suit in August 2011 after first attempting to reach a pre-litigation settlement through its conciliation process.

Selmani did not stop working for the restaurant until months after criminal charges were filed against him.  Eventually he pled no contest on Dec. 9, 2010 in Lincoln County Circuit Court (Case Nos. 2009CM25 and 2009CM101) to having committed Class A misdemeanor battery against three waitresses.  Charges of fourth-degree sexual assault, bail jumping and disorderly conduct were dismissed but “read into” the record of his conviction.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/1-17-13a.cfm

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

Hospitality Industry Health Risks: New York Restaurant Sued By Guest Who Choked On Fish Bone; Throat Surgery To Repair Perforated Trachea

“…She was brought to Lenox Hill Hospital, where she required surgery and a four day stay. Doctors found a Hospitality Industry Lawsuitmicro perforation of her trachea and she was unable to speak for two weeks after being discharged…”

An Upper East Side restaurant that specializes in serving fish is now choking on a lawsuit because of a tiny little bone that lodged in the throat of one of its customers. Claire Amiano, a Michael Kors specialist at Saks, is suing Fulton NYC, a fish restaurant on East 75th Street, saying that she needed emergency throat surgery in August 2012 because a filet of fish she ordered for dinner was not entirely deboned as promised.

Papers filed in Manhattan Supreme Court say when Amiano started to choke, employees called 911 and offered her olive oil and bread to dislodge the bone.

Fulton is owned by Joseph Gurrera who founded the small local chain of Citarella stores which offer high end groceries. He also created Tutto Italiano, an Italian specialty shop.

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