Monthly Archives: April 2012

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Consider Requiring Employees To Sign Arbitration Agreements Containing "Class Action Waivers"

“….conducting a wage and hour audit and educating management on wage and hour best practices…(and) requiring employees to sign arbitration agreements containing class action waivers…(can help) prevent employees from asserting wage and hour claims in the form of a class action lawsuit…”

Class action waivers received a boost by the U.S. Supreme Court last year in a widely publicized consumer class action case in which the court found them to be legally enforceable in a mandatory arbitration agreement. The AT&T Mobility v. Concepcion decision has caused some employers to consider including class action waiver language in employee arbitration agreements to prevent class/collective wage and hour lawsuits. However, courts are still struggling with the issue of whether the right to proceed as a class/collective action can be waived under the Fair Labor Standards Act.

Waivers will be more likely to be upheld where they contain provisions providing fair relief for the employee, such as:

  • Employee chooses the venue for dispute resolution;
  • Employee is entitled to injunctive relief and punitive damages, if applicable; or
  • Employer pays some or all of the costs of the dispute resolution and/or waives claims for its own costs and fees.

For more:  http://www.lexology.com/library/detail.aspx?g=0345c278-07bc-4308-bdf2-7c7b16f0ba84

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

Hospitality Industry Crime Risks: "Large Identity Theft Operation" Uncovered At California Hotel After Manager Suspected Drug Sales

“…Deputies found fake credit and identification cards as well as computers, printers and software used to make false identification..Deputies also found credit card readers and small cameras that allowed criminals to capture credit card information and PIN numbers. Prepaid credit cards embossed with stolen information which could then be used at businesses were located..”

Sheriff’s deputies broke up a large identity theft operation this past weekend while investigating a report of drug dealing at a hotel room. Investigators contend the material found Sunday at Four Points by Sheraton at 11960 Foothill Blvd. was created using stolen information from card readers or skimmers, Rouse said.

The group allegedly started in Northern California and “have been working their way around,” he said.

On Sunday, a hotel manager called the Sheriff’s Department to report someone was selling drugs in one of the rooms.

Deputies discovered various items indicating Jeffery Wilkinson, 35, Barbara Brown, 32, and Shahin Abdollahi, 46, were involved in a large-scale identity theft ring, sheriff’s Sgt. Ken Jamieson said.

Wilkinson had an arrest warrant and was in the possession of drugs.

For more:  http://www.contracostatimes.com/california/ci_20355205/rancho-cucamonga-id-theft-ring-uncovered

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Filed under Crime, Guest Issues, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Crime Risks: "Large Identity Theft Operation" Uncovered At California Hotel After Manager Suspected Drug Sales

“…Deputies found fake credit and identification cards as well as computers, printers and software used to make false identification..Deputies also found credit card readers and small cameras that allowed criminals to capture credit card information and PIN numbers. Prepaid credit cards embossed with stolen information which could then be used at businesses were located..”

Sheriff’s deputies broke up a large identity theft operation this past weekend while investigating a report of drug dealing at a hotel room. Investigators contend the material found Sunday at Four Points by Sheraton at 11960 Foothill Blvd. was created using stolen information from card readers or skimmers, Rouse said.

The group allegedly started in Northern California and “have been working their way around,” he said.

On Sunday, a hotel manager called the Sheriff’s Department to report someone was selling drugs in one of the rooms.

Deputies discovered various items indicating Jeffery Wilkinson, 35, Barbara Brown, 32, and Shahin Abdollahi, 46, were involved in a large-scale identity theft ring, sheriff’s Sgt. Ken Jamieson said.

Wilkinson had an arrest warrant and was in the possession of drugs.

For more:  http://www.contracostatimes.com/california/ci_20355205/rancho-cucamonga-id-theft-ring-uncovered

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Filed under Crime, Guest Issues, Liability, Management And Ownership, Risk Management, Theft

Hospitality Industry Legal Risks: Sen. Feinstein Pressures California Senate To Adopt Legislation To Curb "Abusive ADA Lawsuits" Against Small Businesses For Minor Violations Of "Disabled-Access Laws"

“…in Redlands, 22 businesses were sued by the same attorney for allegedly failing to post a sign next to the handicapped parking spaces that informed parking violators they would be towed. The business owners settled the cases in amounts ranging from $5,000 to $14,000, Feinstein wrote…”

The bill would require those seeking disabled access to first notify the business of a violation, and then give it 120 days to correct the problem, during which time the firm could not be sued.

Sen. Dianne Feinstein (D-Calif.) has written to the leader of the California Senate, calling for the state to adopt legislation that would curb what she calls abusive lawsuits filed by private attorneys against small businesses for minor violations of disabled-access laws, and warning that if the state doesn’t act, she will.

Feinstein said some attorneys are filing “abusive lawsuits,” and “coercive demand letters” to force small businesses to pay thousands of dollars over often-minor noncompliance with the federal Americans With Disabilities Act and the state Unruh Civil Rights Act.

Steinberg wrote back that the California Legislature shares her concerns and approved a measure in 2008 that helps businesses come into compliance and makes it tougher to sue. The state leader disputed Feinstein’s contention that SB 1186 by state Sen. Bob Dutton (R-Rancho Cucamonga) is a possible answer.

For more:  http://www.fox40.com/news/headlines/ktxl-sen-feinstein-calls-on-state-to-curb-abusive-lawsuits-over-ada-20120404,0,7811356.story

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Filed under Guest Issues, Legislation, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Sen. Feinstein Pressures California Senate To Adopt Legislation To Curb "Abusive ADA Lawsuits" Against Small Businesses For Minor Violations Of "Disabled-Access Laws"

“…in Redlands, 22 businesses were sued by the same attorney for allegedly failing to post a sign next to the handicapped parking spaces that informed parking violators they would be towed. The business owners settled the cases in amounts ranging from $5,000 to $14,000, Feinstein wrote…”

The bill would require those seeking disabled access to first notify the business of a violation, and then give it 120 days to correct the problem, during which time the firm could not be sued.

Sen. Dianne Feinstein (D-Calif.) has written to the leader of the California Senate, calling for the state to adopt legislation that would curb what she calls abusive lawsuits filed by private attorneys against small businesses for minor violations of disabled-access laws, and warning that if the state doesn’t act, she will.

Feinstein said some attorneys are filing “abusive lawsuits,” and “coercive demand letters” to force small businesses to pay thousands of dollars over often-minor noncompliance with the federal Americans With Disabilities Act and the state Unruh Civil Rights Act.

Steinberg wrote back that the California Legislature shares her concerns and approved a measure in 2008 that helps businesses come into compliance and makes it tougher to sue. The state leader disputed Feinstein’s contention that SB 1186 by state Sen. Bob Dutton (R-Rancho Cucamonga) is a possible answer.

For more:  http://www.fox40.com/news/headlines/ktxl-sen-feinstein-calls-on-state-to-curb-abusive-lawsuits-over-ada-20120404,0,7811356.story

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Filed under Guest Issues, Legislation, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Theft Risks: Florida Hotel Employee Charged With Stealing $500 Of "Dom Perignon Champagne"; Picture Posting On "Facebook" Leads To Arrest

“…an employee at the hotel discovered pictures on a Facebook page of a former night auditor and a friend holding Dom Perignon champagne bottles with the caption: “Hey, we’re having Dom in the morning!”

The security cameras had been turned off at the time of the theft, according to a subsequent investigation.

A Panama City Beach hotel reported the theft of $500 of Dom Perignon champagne in February after an inventory of supplies showed three bottles were missing, according to a news release from the Bay County Sheriff’s Office.

The hotel manager ID’d the man as Jonathon Appleby, a former night auditor at the hotel. Appleby had access to the cooler with the champagne and to the security cameras while he was employed an investigation determined.

For more:  http://www.sun-sentinel.com/news/strange/sfl-champagne-20120408,0,4727820.story

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

Hospitality Industry Theft Risks: Florida Hotel Employee Charged With Stealing $500 Of "Dom Perignon Champagne"; Picture Posting On "Facebook" Leads To Arrest

“…an employee at the hotel discovered pictures on a Facebook page of a former night auditor and a friend holding Dom Perignon champagne bottles with the caption: “Hey, we’re having Dom in the morning!”

The security cameras had been turned off at the time of the theft, according to a subsequent investigation.

A Panama City Beach hotel reported the theft of $500 of Dom Perignon champagne in February after an inventory of supplies showed three bottles were missing, according to a news release from the Bay County Sheriff’s Office.

The hotel manager ID’d the man as Jonathon Appleby, a former night auditor at the hotel. Appleby had access to the cooler with the champagne and to the security cameras while he was employed an investigation determined.

For more:  http://www.sun-sentinel.com/news/strange/sfl-champagne-20120408,0,4727820.story

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

Hospitality Industry Employment Risks: Labor Department Investigation Forces Massachussetts Restaurants To Repay Employees For Back Wages And Incorrect Overtime

“…investigation found that several restaurants “violated the FLSA by paying  employees flat salaries for all hours worked without overtime pay, failing to  combine hours worked at multiple locations for overtime purposes, paying  incorrect overtime rates to tipped employees, making illegal deductions from  employees’ wages and failing to keep accurate records of employees’ hours….”

“…Even  more serious, our investigations found an emerging trend of misclassifying  restaurant workers as independent contractors in order to avoid minimum wage,  overtime and record-keeping requirements of the FLSA.”

Dozens of eateries around the state are paying employees for back wages as a  result of an ongoing enforcement initiative conducted by the U.S. Department of  Labor.

To date, investigations by the Boston District Office of the department’s  Wage and Hour Division have found $1,307,808 in back wages due to 478 employees  of 34 different Massachusetts restaurants.

Fifteen Not Your Average Joe’s locations have been cited, including the one  on Enon Street in Beverly, which is to pay nine employees a total of $44,201.73  in back wages.

The investigation, according to a release by the U.S. Department of Labor,  uncovered significant violations of the minimum wage, overtime and  record-keeping provisions of the Fair Labor Standards Act in many Massachusetts  restaurants.

Read more: Beverly restaurant to pay employees for back wages – Beverly, MA – Beverly Citizen http://www.wickedlocal.com/beverly/newsnow/x221034920/Beverly-restaurant-to-pay-employees-for-back-wages#ixzz1rJqNdvfO

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

Hospitality Industry Legal Risks: U.S. House Introduces Bill Calling For "One-Year Extension Of The ADA Deadline" On Installation Of Public Pool Lifts

“…A second congressional bill addressing the Americans with Disabilities Act has been introduced…once Congressman Mulvaney saw the strain placed on small-business owners who were rushed to [comply], and the concern for the safety of those using pool lifts, he decided to introduce [the bill]…”

It would prohibit lawsuits against pool and spa facilities for ADA violations alleged to occur between March 15, 2012, and one year after enactment of the bill. “Congressman Mulvaney believes portable lifts and shared lifts are the best solution…,”

On March 26, Congressman Mick Mulvaney (R-S.C.) introduced H.R. 4256, calling for a one-year extension of the ADA deadline for public pools. If passed, the bill also would allow portable lifts and sharing of lifts between vessels. “It allows for lift accessibility and safety, as well as being more economically achievable…”
The bill has 26 original co-sponsors. Ron Paul (R-Texas) is among the most recognized, and Mike Ross (D-Ark.) is the only Democrat.
In early March, Mulvaney joined 67 members of Congress in a letter to the U.S. Department of Justice, which enforces the ADA, decrying its decision not to allow portable lifts or sharing. In addition, he took issue with the timing of the decision, which came 45 days before the deadline. “In that short time, approximately 309,000 pools or spas would need their own individual lifts,” McAdaragh said. The letter asked the DOJ to, at the very least, extend the deadline by six months.

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Filed under Guest Issues, Health, Insurance, Labor Issues, Legislation, Liability, Management And Ownership, Pool And Spa, Risk Management

Hospitality Industry Legal Risks: U.S. House Introduces Bill Calling For "One-Year Extension Of The ADA Deadline" On Installation Of Public Pool Lifts

“…A second congressional bill addressing the Americans with Disabilities Act has been introduced…once Congressman Mulvaney saw the strain placed on small-business owners who were rushed to [comply], and the concern for the safety of those using pool lifts, he decided to introduce [the bill]…”

It would prohibit lawsuits against pool and spa facilities for ADA violations alleged to occur between March 15, 2012, and one year after enactment of the bill. “Congressman Mulvaney believes portable lifts and shared lifts are the best solution…,”

On March 26, Congressman Mick Mulvaney (R-S.C.) introduced H.R. 4256, calling for a one-year extension of the ADA deadline for public pools. If passed, the bill also would allow portable lifts and sharing of lifts between vessels. “It allows for lift accessibility and safety, as well as being more economically achievable…”
The bill has 26 original co-sponsors. Ron Paul (R-Texas) is among the most recognized, and Mike Ross (D-Ark.) is the only Democrat.
In early March, Mulvaney joined 67 members of Congress in a letter to the U.S. Department of Justice, which enforces the ADA, decrying its decision not to allow portable lifts or sharing. In addition, he took issue with the timing of the decision, which came 45 days before the deadline. “In that short time, approximately 309,000 pools or spas would need their own individual lifts,” McAdaragh said. The letter asked the DOJ to, at the very least, extend the deadline by six months.

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Filed under Guest Issues, Health, Insurance, Labor Issues, Legislation, Liability, Management And Ownership, Pool And Spa, Risk Management