Category Archives: Labor Issues

Hotel Industry Employee Risks: New York Hotel Employee Convicted Of Raping Guest And Civil Suit Seeks Damages For "Negligent Hiring, Supervision And Training"

A tourist filed a suit on Monday against a New York hotel where she was raped by an employee.

Her Manhattan federal court suit is seeking unspecified damages from the corporate parent company Surrey Hotel Associates for the allegedly negligent hiring, supervision and training of Jaime Marin Lopez Mendoza.

The victim’s holiday nightmare happened two days after Christmas in 2009. She was attacked at about 3am while sleeping in her room in the Dream Hotel on West 55th Street. He was convicted of first-degree rape in January and received a 15 year prison sentence.

Mendoza struck after helping the stumbling woman and her boyfriend into their room following a night of drinking, the New York Post reports. He ran off when she awoke to find him on top of her.

Manhattan Supreme Court Justice Jill Konviser described the attack as the ‘ultimate example of depravity,’ adding: ‘This crime was not only violent and calculated, but it was a master class in cowardice.’ The victim, who comes from Rhode Island, did not go to the sentencing but wrote a letter which was read out in court.

Read more: http://www.dailymail.co.uk/news/article-1366522/Tourist-sues-New-Yorks-Dream-Hotel-employee-raped-her.html#ixzz1GiAlQ223

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Filed under Claims, Crime, Guest Issues, Labor Issues, Management And Ownership, Risk Management

Hospitality Industry Security Risks: Hotel Employee "Erroneously" Gives Room Key To Man Who Is Charged With Child Molestation And Assault

Allegedly, the suspect was not a registered guest at the hotel but was staying with a registered guest. He approached a front desk clerk and stated that he did not have his room key and therefore needed a replacement key.

On top of that, the suspect stated to the clerk which room that he was staying in, and … the clerk did not bother to check the suspect’s identfication against the stated room number.

According to KMOV-News, An intoxicated adult male, Daniel T. Hughes, 42, had asked for a room key at the Ritz Carlton Hotel and was not only given the wrong room key, but climbed into bed with a 9-year old child.

The child’s parents were asleep in an ajoined room. At this time. the Clayton Police Department, do not believe that the suspect had any prediposed motives leading up to the assault, however, he was arrested, charged, and being held on bail. The incident occurred early Sunday evening around 4:00 a.m.

For more:  http://www.examiner.com/offender-awareness-in-st-louis/error-judgment-by-ritz-carlton-employee-leads-to-child-molestation

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Filed under Crime, Guest Issues, Labor Issues, Management And Ownership, Risk Management, Training

Hospitality Industry Employee Risks: Recession Causing More Laid-Off Workers To File "Wage-And-Hour" Claims Which Is Covered Under "Employment Practices Liability" Insurance

“…industry experts say they have seen an increase in wage-and-hour claims, which has led some insurers to stop writing such defense coverage, which most typically is provided for as a sublimit under employment practices liability insurance policies…”

Laid-off workers can, for example, allege that they were not paid for all hours worked, misclassified or not properly paid overtime, experts say.

As layoffs drive wage-and-hour claims, middle-market employers may find defense coverage more difficult to find and more costly when they do, particularly in California, insurers and brokers say. The market firming for wage-and-hour defense coverage comes after a rise in claims by laid-off workers who allege violations of the Fair Labor Standards Act and other laws, according to brokers and insurers.

“It’s a reflection of how difficult it is for employees to find another job,” said Christian Hamlin, a professional lines producer in the Los Angeles office of wholesaler Burns & Wilcox Ltd.

The U.S. unemployment rate remains high, but has improved from the decade’s peak unemployment rate of 10.1% in October 2009, according to the U.S. Department of Labor’s Bureau of Labor Statistics. In February, the U.S. unemployment rate was 8.9%, a 0.1% decline from January, according to BLS.

At the same time, Coverage remains available as some insurers continue to provide it, said Michael Mahoney, senior vp at Willis Insurance Services of California Inc. in San Francisco.

For more:  http://www.businessinsurance.com/apps/pbcs.dll/article?AID=/20110306/ISSUE01/303069982

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

Hospitality Industry Employee Theft: Delaware Hotel Accounting Manager Arrested For Cash Thefts And Falsifying Business Records

Detectives with the Division of Gaming Enforcement arrested 53-year-old Andrew McCoy of Smyrna on Tuesday. He is charged with theft and falsifying business records.

  • An employee theft is any intentional misappropriation of employer property, e.g., inventory, fixed assets, currency checks, or trade secrets.
  • It can include fraud (intentionally misleading the employer), embezzlement (theft of corporate funds) or forgery (altered negotiable instruments).
  • It can be as straightforward as a theft of petty cash or as complex as a misappropriation scheme detectable only in an audit.
  • It can be the isolated act of a single low-level employee or a complex scheme involving a trusted senior employee.

Authorities say the former director of hotel accounting at Dover Downs has been arrested in connection with cash thefts from the hotel. Dover Downs CEO Denis McGlynn tells The News Journal of Wilmington that McCoy was fired in February after evidence was found of internal thefts. McGlynn says the thefts, believed to have totaled between $20,000 and $25,000, involved small cash transactions.

For more:  http://www.therepublic.com/view/story/ac67083ec0e54c05a592be7577a39914/DE–Dover_Downs-Theft/#

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

"P3 Hospitality Risk Update": "Title 3 And ADA Law Changes" From Petra Risk Solutions' Risk Manager Joe Fisco (Video)

[vimeo 51945038 w=500 h=279]

Petra Risk Solutions’ Risk Manager, Joe Fisco, offers a P3 Hospitality Risk Update – ‘Title 3 and ADA Law Changes’. 

P3 ( Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

 For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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

Hospitality Industry Advertising Risks: Misleading Hotel Guests Using Online "False Reviews" Or "Photoshopped" Images On Hotel Website "Violates The Law"

“…a person or company that endorses a service or product should be upfront about any financial connection they may have with the marketer. For example, if an employee of a hotel writes a review of the hotel, they must say they are an employee. Posing as an independent reviewer would violate the law…”

“…Fabricating a property’s appearance through the use of Photoshop or trick photography, or posting false online reviews to create a more appealing facade is not recommended or condoned by the American Hotel & Lodging Association…”

Misleading potential guests is not only ethically objectionable, it also minimizes the chance for repeat business, word-of-mouth referrals, and positive online reviews. Additionally, planted reviews are typically transparent and the intended result has the opposite effect.

For hoteliers, AH&LA recommends addressing and responding to negative online comments and accurately representing the hotel in online and offline material to ensure guest satisfaction and long-term success. For consumers, AH&LA recommends reviewing a mix of high, low, and medium online reviews to identify consistent characteristics of the hotel. Additionally, it’s advised to use multiple sources to obtain the most accurate depiction, including visiting the hotel’s Website, online and offline review sources, and Facebook.”

For more:  http://today.msnbc.msn.com/id/41741701/ns/today/

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Filed under Crime, Guest Issues, Labor Issues, Management And Ownership, Risk Management, Technology, Training

Hospitality Industry Internet Risks: Hotel Management Must Train Employees To "Check Security Software And Certifications On Websites" To Prevent Downloading Internet Viruses

“These Internet scammers are very sophisticated…They’ll send an e-mail that looks like eBay or PayPal, asking for your information. The attorney general speaks often about Internet safety, and he encourages consumers to check the security software and certifications on websites and never store their personal information there. We have an identity theft protection tool on our website, www.Ag.ky.gov…”

Every website you visit tags your computer with a tracking device called a “cookie.” Your every move online — e-mail, downloads, credit-card purchases — is stored on your own computer’s hard drive as a digital footprint, even though you religiously delete and empty your recycle bin.

(A woman) was digitally minding her own business and was accosted by a phony website phishing for her personal information — something all too common on the Internet. As technology insidiously pervades every aspect of life, personal privacy becomes more endangered and difficult to maintain. Erik Eckel, a managing partner at Louisville Geek and Berg’s computer service tech, called her problem “one of the biggest trends we’ve seen.

Users will click on a link on someone’s Facebook page, or travel to a site that’s infected and they receive a pop-up window saying, ‘You’re infected. You want to go ahead and license the software? Only $39.95.’ The pop-up won’t go away, people buy it and then an illegitimate user has their credit-card number.” And then there are hackers, like David Kernel, now serving a yearlong sentence at the Ashland Federal Correctional Institution in Kentucky for invading Republican vice presidential candidate Sarah Palin’s private e-mail account during the 2008 election and sharing her password and telephone number.

Even Kentucky Attorney General Jack Conway was a victim of identity theft, weeks after announcing a special unit on cybercrime.

For more:  http://www.courier-journal.com/article/20110222/FEATURES/302220033/With-latest-Web-perils-it-s-wise-to-be-paranoid?odyssey=tab%7Cmostpopular%7Ctext%7CFEATURES

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Filed under Crime, Guest Issues, Labor Issues, Management And Ownership, Risk Management, Technology, Theft

Hospitality Industry Employee Risks: Hotel Management Must Establish "Off-The-Clock" Policies For Employee Responses To Business Calls, Texts And Emails

Adding to the complexity of off-the-clock rules are the number of employees who respond to e-mails, text messages or phone calls after their shift is finished. Workers often do so by choice, but the employer could be held liable for overtime should the employees file a later claim.

“Time spent on these activities will likely be deemed compensable,”

One area that has attracted a significant amount of attention in recent years is rest periods; defined as requiring a 10-minute break period for every four hours of work, and meal periods of at least 30 minutes for shifts lasting longer than five hours.

Previously employers were required by law to ensure their employees took breaks appropriately, but it was difficult to manage, particularly for employees who preferred to take a break and conduct personal business at their desk or work station.

In an appeal of a court order in the case of Brinker Restaurant Corp. vs. Superior Court, the appeal reversed the stricter order, ruling that rest and meal breaks need only be made available, and not ensured.

As this is an issue that affects so many people and produced so many lawsuits, the California Supreme Court granted a review of Brinker decision. A final ruling is expected this year.

“We recommend counseling employees to get off the clock and take their break,” Poole said.

There should also be wording describing the break periods the employee is required to take, at the bottom of every time sheet or card an employee signs, Koegle said. Repeatedly signing a time card with the advisory would be one means of acknowledging the law by employer and employee alike.

Employers should include strong written policy in their company employee handbook that nonexempt employees are not expected to work after-hours, and advise their employees of the policy.

Last, companies requiring employees to change in and out of uniforms at the workplace must compensate the employees for the time spent doing so.

Privacy expectations

The recent technology explosion brings a whole new set of complications for employers. The U.S. Supreme Court rules that an employee with a company-issued device such as a cell phone, smart phone or computer has a reasonable right to privacy while using the equipment.

First Amendment rights protect employee messages, even those a company deems objectionable. A company must have a reasonable cause to search text, e-mails or Internet browsing by an employee.

It is expected however that in the next few months the courts will rule in a company’s favor, granting a company the right to prohibit activity such as surfing the Internet for pornography. Employee use of social media, whether performing duties on the job or for personal use, is also a hot topic.

Companies will need to craft well-written employee policies outlining actions that are subject to discipline or termination. The next question will be how policies can be enforced if an employee violates policy after-hours when they are off-duty.

For more:  http://www.the-signal.com/section/36/article/40833/

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

Hospitality Industry Legal Risks: The 2012 "Americans With Disabilities Act" (ADA) Update Will Impact Hotel Ballrooms, Gyms, Spas And Employee Areas

“…the changes that are most significant to the hotel industry will affect public spaces, such as ballrooms and assembly areas, gyms, spas and employee areas…”

“…the current standards mandate that if you have six toilet compartments in a restroom, not only does one have to be a large ADA stall, but you have to have a second ADA stall that’s designed for people who have mobility issues. The second stall must be narrower and have rails on both sides…”

The new requirements take effect on 15 March 2012. Because the new rules will not be requirements for more than a year, any new development or remodeling completed before the new law goes into effect will be considered compliant.

The new standard is triggered by six fixtures, not compartments, in any combination of toilets or urinals. If the bathroom has only two stalls, one has to be the big ADA stall and the other has to be for those with mobility problems.

Other changes, according to sources:

  • The amount of counter space provided in the bathrooms of accessible rooms must be equivalent to the space provided in non-accessible rooms.
  • There is more explicit information about the acceptable depth of counters, which would apply to registration counters and counters in retail areas.
  • Swimming areas and spas are subject to expanded rules on accessible routes. Depending on the size of the pool, there may be a requirement for more than one access route into the pool, such as a ramp and stairs with handrails.
  • If there are multiple elevators that respond to the same call button, all elevators must be compliant instead of just one so that someone in a wheelchair doesn’t have to wait for the accessible one.
  • The disabled must be able to make reservations for guestrooms in the same manner as anyone else; if a hotel has an online system, they have to be able to reserve an accessible room online.
  • There are increased requirements for accessible routes within buildings.

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

Hospitality Industry Legal Risks: Hotel Owners Must Strive To "Avoid" Employee Lawsuits With "Strong Management" And "Attentive HR Staff"

“…a review of selected cases shows plaintiffs prevailed in 55% of retaliation and whistleblower lawsuits and in 75% of sexual harassment cases…”

“…The pro-employee and, many argue, pro-union policies of the Obama administration have arguably made matters worse, if not convincing employees to sue or obstruct their employers, at least showing them how it’s accomplished…”

 

The Department of Labor, for example, citing the difficulty the average employee encounters in navigating the legal system, has said it will now provide wage/hour claimants who had filed cases with the agency but whose claims would not be heard (including those whose claims lacked merit) with a list of local attorneys who, as a DOL official announced, “may be able to help.” 

The National Labor Relations Board, its regulatory and judicial reach muted during the Bush administration, is an agency reborn, replete with pro-union appointees. In mid-December 2010, the Board announced a proposed rule that would require employers to place on employee bulletin boards a poster notifying employees of their right to unionize. Employers, particularly those in the hospitality and other service industries staffed predominantly by minimum wage employees, are understandably likely to object. Meanwhile, unions won two-thirds of all conclusive elections conducted in 2009, the most recent year surveyed, according to the NLRB’s 2009 annual report.

  Vanquishing the curse of litigation is no easy task. Labor and employment lawyers long have argued that the only effective way is to keep it from happening—to keep the genie in the bottle. How? The most practical prophylactic is a combination of strong, compassionate leadership (the opposite of what destructive leaders peddle) and an equally strong, dialed-in HR team who fairly administer policies that recognize an employee’s intrinsic value and reinforce the organization’s unequivocal support for fair treatment.

For more: http://www.hotelnewsnow.com/Articles.aspx/4679/Two-big-HR-challenges-in-2011

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