Tag Archives: Sexual Harassment

by | June 28, 2011 · 1:15 pm

Hospitality Industry Insurance Risks: "Employment Practices Liability Insurance" May Contain "Exclusions For Intentional Acts" That May Deny Coverage To Hotel Executives In "Disparated Treatment And Sexual Harassment" Cases

“…a panel of arbitrators found that (the executive)  “was well acquainted with the company’s policy on sexual harassment and other acts of inappropriate conduct.”  They further found that (the executive)  “did not comply with the policy on sexual harassment and that his refusal was willful.” 

“…attorneys should remind their clients to carefully review their existing EPLI policies and to understand all exclusions that may apply, as well as to be mindful of such exclusions when negotiating the purchase of a new EPLI policy…”

Exclusions typically found in EPLI policies include exclusions for Fair Labor Standards Act claims, National Labor Relations Board decisions, ERISA matters, costs of complying with accommodations mandated by the Americans with Disabilities Act, and claims arising out of facts or circumstances known to the employer before the effective date of the policy.  Another possible exclusion is for intentional acts.  This exclusion generally is intended to eliminate coverage if an employer acts with “wonton, willful, reckless, or intentional disregard for any laws.” This exclusion is a carryover from other policies traditionally offered, including commercial general liability policies and workers compensation policies.

The question that arises is whether an intentional acts exclusion precludes coverage for disparate treatment or sexual harassment claims.  By their very nature, disparate treatment and sexual harassment require some type of intentional conduct.  If the intentional acts exclusion is interpreted broadly enough, an allegation of disparate treatment or sexual harassment may provide the insurer grounds for denying coverage under the policy.

For more:  http://www.lexology.com/library/detail.aspx?g=54d3b2ac-48f1-497b-ac65-ee0e32826815

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by | May 26, 2011 · 9:21 am

Hospitality Industry Employee Safety Risks: Hotel Housekeepers And Staff May Wear "Electronic Panic Buttons" To Protect Against Assault If New York Legislation Is Passed

“New York hotel workers would have electronic “panic buttons” under a new bill proposed after then-IMF chief Dominique Strauss-Kahn was charged with sexually assaulting a hotel maid…”

“…Hotel workers needing urgent help could use the panic buttons to contact the hotel’s front desk or its security, then police could be called if necessary…”

“…assaults may be undercounted, experts say, since workers may fear being sacked and employers, mindful of insurance, might not want to report assaults that are not severe….”

 Assemblyman Lancman, who chairs the Assembly’s subcommittee on workplace safety, said attacks on hotel maids and housekeepers were relatively common although he had no data to support that.

In 2009, 100 hotel maids were assaulted—70 by people, 30 by animals—according to the U.S. Bureau of Labor Statistics. But assaults may be undercounted, experts say, since workers may fear being sacked and employers, mindful of insurance, might not want to report assaults that are not severe. 

Hotel companies are examining security protocols following the incident, industry executives said on Tuesday.

 For more:  http://www.businessinsurance.com/article/20110525/NEWS01/110529923

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by | May 21, 2011 · 7:51 am

Hotel Industry Employee Security Risks: Arrest Of IMF Executive For Sexual Assault On Housekeeper Highlights Potential Dangers As Security Personnel Layoffs Leave Staff Vulnerable

“…Hotel housekeepers say they often feel a twinge of fear when they slide the key card, turn the door handle and step into a room to clean it. What will they find?…”

“…Many more (incidents) are hushed up, labor groups say, because the victims are illegal immigrants or because hotels are wary of scaring off guests. Many hotels laid off security staff during the recession, leaving workers even more vulnerable…”

For Argelia Rico, it was a naked man who touched himself as he ogled her. For Kimberly Phillips, it was a pair of dogs that tore into her leg.

Last week the former head of the International Monetary Fund, Dominique Strauss-Kahn, was charged with chasing a housekeeper around his $3,000-a-night penthouse suite and forcing her to perform oral sex on him at the Sofitel hotel in New York.

Labor groups and hotel housekeepers have reported at least 10 other such incidents in the United States in recent years, from Gaithersburg to remote Grand Island, Neb.

“It’s dangerous work,” said Yazmin Vazquez, who works at a hotel in downtown Chicago. “These customers think they can use us for anything they want, because we don’t have the power that they have or the money that they have.”

For more:  http://www.washingtonpost.com/politics/in-wake-of-strauss-kahn-arrest-hotel-housekeepers-say-jobs-often-make-them-wary/2011/05/21/AFIe6j8G_story.html

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by | December 30, 2010 · 3:59 am

Hospitality Industry Employee Risks: Hotel Owners Should Maintain “Employment Practices Liability” Insurance Coverage For Wrongful Termination, Harassment And Discrimination Suits

EPL insurance policies protect businesses from the financial costs incurred from employment-related lawsuits filed for a range of reasons, from wrongful termination to harassment to discrimination and so on. More than half of claims are filed against small businesses…however, less than two percent of businesses with fewer than 50 employees purchase EPL insurance.

  • A recent Chubb survey found that 36 percent of private company executives understand the gravity of their exposure to EPL suits and 21 percent said they had an experience with an EPL suit in the last five years.
  • While every EPL policy is different, a company with $1 million in sales and 50 employees can likely get a policy for about $7,000 per year—$10,000 if they also take out coverage protecting directors and officers in the event of liability lawsuits against them personally.
  • The leading charge filed in discrimination cases is an allegation of racial discrimination, at 36 percent of cases, according to EEOC figures from 2009. Gender-based discrimination was alleged in 30 percent of cases.
  • Age-based claims made up 24 percent
  • Disabled claims tallied 23 percent.

In many cases, multiple allegations are made. One of the growing charges, according to the EEOC, is retaliation against employees for making discrimination claims, which can involve a job switch that the employee views as a demotion related to the initial claim.

“If you go to your supervisor and say you’ve been harassed by Joe, you can bring that claim to EEOC, but then if they decide to fire you or cut back your hours, that is the retaliation component,” says Tom Hams, Aon Risk Solutions’s EPL practice leader. “That retaliation component can survive much more than the allegation itself.” The employer may win on the allegation of whether or not you were discriminated against, but they may lose a case based on the retaliation claim for moving the complainant to a different job or office setting.

For more:  http://www.inc.com/guides/2010/12/how-to-reduce-employment-liability-claims_pagen_2.html#

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by | December 16, 2010 · 2:41 am

Hospitality Industry Employee Issues: California Hotel And General Manager Sued For “Retaliation For Reporting Sexual Harassment, Defamation And Wrongful Termination”

The Four Seasons’ former lead massage therapist alleged in a recent lawsuit that he was demoted after complaining that the hotel’s general manager was romantically involved with a masseuse and had sought favorable treatment for her.

John B. Henning said he was instructed in August 2009 to make sure that certain massage therapists were not paid more than a masseuse who “was engaging in a romantic relationship” with general manager Thomas Gurtner.

Henning said he refused to comply with the instructions and instead told the hotel’s assistant human resources director that Gurtner was favoring the woman. One month later, Henning alleged, he was demoted and “constructively terminated” from his job. Henning said a supervisor explained that the hotel wanted “to move forward with a more positive team.”

A spokeswoman for the 270-room resort hotel declined to comment.

The lawsuit, filed Friday in Los Angeles County Superior Court, seeks unspecified general and punitive damages, plus legal fees and other costs. It accuses the hotel of retaliation for reporting sexual harassment, defamation and wrongful termination.

For more:  http://latimesblogs.latimes.com/money_co/2010/12/sexual-harassment-four-seasons-hotel-westlake-village-massage-.html

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by | December 3, 2010 · 8:58 am

Hospitality Industry Workplace Risk Management: Hotel Owners And Management Can Limit “Sexual Harassment” Liability By Preventing “Hostile Work Environments” And Educating Employees To Report “Unwelcome Sexual Conduct” (Video)

[youtube=http://www.youtube.com/watch?v=po6V_h7w4Nc&feature=mfu_in_order&list=UL]

There are various types of sexual harassment including “hostile work environments”. This video presents employees with scenarios that define sexual harassment and how to effectively recognize and deal with it.

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by | April 9, 2010 · 6:48 am

Hospitality Industry Insurance: Employment Practices Liability Insurance Protects Employers From “Workplace Bullying” Claims

Employers are turning to ’employment practices liability’ insurance to protect against bullying-type claims (harassment, wrongful termination, etc.) for which companies pay $5,000 to $100,000 in annual premiums with deductibles of $10,000 to $25,000. The median compensation in wrongful termination cases topped $200,000 in 1995, up 45% from the year before.

Workplace bullying includes all types of interpersonal harassment and psychological violence. Few are blatantly illegal; most are not. It crosses all organizational levels, from the top down and from the bottom up. Unchallenged bullying poisons the workplace, undermines productivity, and contributes to a skyrocketing exposure to risk.

The anguish of bullied employees forces them to pay with their health–both psychological and physical–that affects them, their co-workers and their families. It undermines a loyal employee’s commitment to the organization, while eroding personal well-being.

Relationships among employees, and between management and staff, are strained more than ever because of time and productivity pressures. Pressure, to some, justifies the mistreatment of others. When mistreatment goes unchallenged, even passive individuals are capable of explosive rage that can result in headline episodes of workplace violence.

http://www.workplacebullying.org/employers.html

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by | April 6, 2010 · 10:12 am

Hotel Industry Sexual Harassment: Smaller Hotel Operators Have Minimal “Workplace Hostility” Procedures In Place And Managers Are Often “Friends” Of Senior Management

The situation was difficult to report internally, as the hotel had no clear-cut method of filing such a form of workplace hostility, according to Tsamis. Calls by Windy City Times to the human resources department at the hotel were not returned.

The matter grew more complicated because the manager is friends with the son of the general manager and the human resources manager, according to Kosman.

“Because there was not a policy of reporting in place, I wrote a letter to Bricton Group,” Tsamis said.

(From a WindyCityMediaGroup.com article)   When Hernan Cortes began working for Holiday Inn in 2006, he was pleased with the job.

“It was an excellent work environment,” said Cortes.

Things changed radically in August 2009, when, according to Cortes, his new male supervising manager began sexually harassing him and, ironically, discriminating against him due to his sexual orientation.

Sexual harassment and discrimination based on sexual orientation, two forms of workplace hostility, have intersected in a case involving employees of a Holiday Inn franchise in Elmhurst, Ill. The hotel is run by The Bricton Group, which is based in Park Ridge, Ill.

Two employees of the hotel have sought legal advice due to the alleged incidents.

Dan Kosman, the second employee seeking legal assistance, began working for the hotel in June 2009. Around August, his supervising manager—the same manager who also supervised over Cortes—allegedly began sexual harassing him as well.

“I’d walk by and he’d pinch my butt,” Kosman said. “I’d be by the filing cabinet, bending over, and he’d come over and bump me purposely.

Kosman added that the manager also committed more lewd actions, such as exposing his penis to him. Cortes reportedly faced similar harassment.

Discrimination based on sexual orientation also came into play, when other employees were present, said Kosman and Cortes.

“He called me ‘F squared,’ which mean ‘f’ing faggot,'” Cortes said.

“As the harassment went on, he was obviously a closeted gay,” Kosman said. “When there were other people around, he was definitely throwing [ homophobic words ] around to whomever he was talking to. I would be somewhere on the sidelines … and he’d say, ‘Oh, that guy’s a fag.'”

Kosman sought the advice of Lambda Legal, an organization that offers legal assistance to the LGBT community, in December. Lambda referred Kosman to his current lawyer, Betty Tsamis.

http://www.windycitymediagroup.com/gay/lesbian/news/ARTICLE.php?AID=25872

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by | March 19, 2010 · 1:35 pm

Sexual Harassment In The Hospitality Industry: Restaurant Operators Should Have Backgrounds Checked Closely To Prevent Harassment Of Gays

The hospitality industry is calling for people who operate restaurants to be subjected to more stringent vetting following the case of a restaurateur fined for sexually harassing a gay worker.

(From a TVNZ.co.nz article)   Hospitality workers made up 10% of workplace sexual harassment complaints to the Human Rights Commission in the last two years and in the latest incident the Employment Relations Authority found an Auckland restaurateur guilty of sexually harassing an employee.

Graeme George Edwards has been fined $15,000 in damages and lost pay after harassing, then sacking, a gay employee at his Mexican restaurant.

Hospitality insiders say it’s just the tip of the iceberg and the behaviour is widespread.http://tvnz.co.nz/national-news/harassment-rife-in-hospitality-sector-3423490

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by | March 17, 2010 · 10:04 am

Restaurant Risk Management: Employment Practices Insurance For Workplace “Sexual Harassment” Suits Can Be Rescinded For “Failure To Disclose”

 Applying California law, the United States District Court for the Northern District of California, has held that an insurer was entitled to rescind an employment practices liability policy and to recover the payments made under that policy based on the insured’s failure to disclose on the application for coverage that an employee had resigned after alleging sexual harassment. Carolina Casualty Co. v. RDD, Inc., 2010 WL 597097 (N.D. Cal. Feb. 17, 2010).    

(From a Lexology.com article) The insured, a restaurant owner, received a letter from one of its waitresses on April 28, 2008, advising that she was quitting immediately. The waitress asserted in the letter that she had been sexually harassed by the owner and the managers on weekly basis for the past year, that her complaints about the harassment were met with retaliation in the form of unwanted shift changes and that her mental and physical health was suffering as a result of the events.

The next day, the restaurant contacted its insurance broker to obtain employment practices liability coverage. On behalf of the restaurant, the broker completed and submitted to the insurer an application. Questions 21 and 22 on the application asked: (a) whether, during the past five years, any current or former employee had made any claim or otherwise alleged discrimination or harassment or other Wrongful Acts against any insured; and (b) whether any insured was aware of any fact, circumstance or situation involving any insured that might reasonably be expected to result in a claim. Both questions were answered “no.” The application included notice that if certain key officers of the entity proposed for coverage knew, as of the policy inception date, that the statements in the application were untrue, inaccurate or incomplete, the policy would be void as to those individuals and the entity itself.

On April 30, 2008, the broker sent an e-mail to the insurer stating that a former employee of the restaurant had hired counsel but that no other details were known. The same day, the insurer quoted a price for coverage. The broker then advised the insurer that the number employees had been incorrectly stated on the application submitted, and the insurer issued a revised quote based on the correct number. The insured’s president signed the application the next day, and the policy was issued on July 15, 2008 for the claims-made period of May 5, 2008 to May 5, 2009.

The week before the policy was issued, the former employee filed suit against the restaurant. The insured tendered the action to the insurer under the policy. The insurer defended the action and, ultimately, paid $50,000 to settle it on April 1, 2009. Meanwhile, the insurer first learned of the April 28, 2008 resignation letter on February 2, 2009, and filed suit to rescind the policy three weeks later.

http://www.lexology.com/library/detail.aspx?g=ba82600c-4404-48d8-a65c-853167a52c57

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