Category Archives: Labor Issues

by | November 1, 2010 · 12:04 pm

Hospitality Industry Employee Safety And Wage Issues: Hotel Management Should Expect 2011 OSHA Regulations To Require A Written “Injury And Illness Protection Progam” And Dept. Of Labor (DOL) Rule Requiring Full Disclosure On “Worker’s Pay Computation”

 

  • The Occupational Safety and Health Administration (OSHA) is developing a regulation mandating that employers have a written health and safety program, referred to as an Injury and Illness Protection Program or “I2P2.”
  • This rule would give an OSHA investigator the authority to find that an injury should have been avoided even if it was not regulated under a specific standard.
  • OSHA will also publish a regulation that will require employers to analyze every employee injury to determine if it is a work-related recordable musculoskeletal injury.
  • This regulation would set the stage for OSHA to revive its controversial ergonomics standard.

 

  • The Wage and Hour Division at DOL has a highly anticipated rule that would greatly expand recordkeeping requirements under the Fair Labor Standards Act (FLSA)
  • It would require employers to disclose how a worker’s pay is computed and complete a written “classification analysis” for each worker who is exempt or outside of the coverage of the FLSA.

For more:   http://www.worldtrademag.com/Articles/Column/BNP_GUID_9-5-2006_A_10000000000000932009

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by | October 31, 2010 · 12:44 pm

Hotel Industry Employee Risk Management: Employee’s Use Of Stairs In Multi-Story Hotels Subject Them To “Significantly Greater Risk Of Injury” And Result In Higher Workers’ Compensation Benefits

“Because the employees’ periodic breaks were mandatory, Phillips was required to use the staircase six times during each shift. In fact, in its opening brief, Rio calculated that during the course of Phillips’ 17-year employment, she traversed the stairs approximately 25,000 times,’
 
“…the court concluded that the frequency with which Phillips was required to use the stairs subjected her to a significantly greater risk of injury than the risk faced by the general public. Consequently, Phillips should be awarded benefits, the high court wrote…”
 

The Nevada Supreme Court has ruled that although employers are not “absolutely liable” when employees are injured “on the job,” companies should apply the “increased risk test” to determine whether they are entitled to workers’ compensation benefits.

The justices explained the increased risk test in Rio All Suite Hotel & Casino v. Phillips. According to court documents, Kathryn Phillips was a poker and blackjack dealer at the Rio All Suite Hotel & Casino in Las Vegas. While taking her mandatory 20-minute break during her usual eight-hour shift, she walked down the stairs to the employee break room, slipped, and fractured her ankle.

Her treating physician determined her injury was work related, and Phillips had surgery to repair her ankle. But Rio’s third-party administrator, Sedgwick CMS, denied her claim saying Phillips did not prove the injury arose out of her employment.

“The types of risks that an employee may encounter during employment are categorized as “those that are solely employment related, those that are purely personal, and those that are neutral,” the high court said.

 

 

 

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by | October 28, 2010 · 3:13 pm

Hotel Industry Guest Relations: Hotels Will Increasingly Opt For “Check-In Kiosks” To Provide “Cozy, One-On-One Welcomes” To Improve Guest Satisfaction

 The key is removing the barrier between the guest and the hotel — be it for better service, streamlining, experience or profit. The sitting-behind-a-desk days are not what travelers want,” Sinclair said. “However the hotel chain chooses to roll it out — kiosks, check-in pedestals, tablets or iPads — you walk to the lobby and whoever you speak to can handle your entire needs …

“Traditional front desks, however, may be destined for a scrap heap teeming with bygone lobby fixtures like key boxes, desk bells and hat racks. Some mid-market chains already are dumping imposing check-in counters for cozy, one-on-one welcomes or for virtual check-ins through kiosks or mobile devices.

When Sherry Richert Bulel entered the Andaz West Hollywood in February, she was greeted by a “host” who offered her wine, a comfy chair and room selection via his laptop. “There was no looming desk between us to indicate that he was the hotel staff and I was the guest,” said Richert Bulel, author and founder of simplycelebrate.net, which creates tribute books for special occasions. “I immediately relaxed.”

In addition to Andaz, Courtyard by Marriott has renovated 201 of its 800 U.S. lobbies, swapping its standard front desks for smaller “welcome pedestals” that allow clerks to step out to meet patrons, then step back to check them in. Courtyard will finish the makeover by 2013.

Meanwhile, Starwood has used one of its urban-style Aloft hotels to test a tech-driven welcome service. Several thousand customers who already carried Starwood Preferred Guest cards were texted their room numbers before arriving at the Aloft Lexington in Massachusetts, allowing them to bypass the front desk and head to their floor. 

FITs, or Free Independent Travelers. In general, FITs have above-average income, prefer to roam alone, in small groups or as couples, avoid tourist tracks, research their explorations via their mobile devices, and spend freely. They are, Sinclair said, “now the dominant market traveler being sought after by most major brands.” FITs, experts believe, prefer hotels that offer texted check-in codes or lobby kiosks that spit out room keys. So how long until old-school front desks vanish from most or maybe all mid-market hotels?

“Within the next 36 months,” forecasts James Sinclair, principal of OnSite Consulting, a national restaurant and hospitality consulting company. His clients include W Hotels and the MGM Grand in Las Vegas. Related: Tech-savvy travelers embrace self-service model “ You sit on a couch and wait your turn rather than (stand) behind Bob who is arguing that he didn’t have the salt-and-honey peanuts from the minibar.” Viewed from the bottom line, chopping the front desk also “makes sense for the hotel in terms of profit maximization,” Sinclair said. “As the hotel market has become more competitive with the various online practices and the need to refocus on margins, there are only a few areas that can be looked at.” Number one: payroll. No front desks, or smaller versions, could allow hotels to operate with fewer employees. What’s next? No beds? Then again, that’s the chief reason why some mega-mile travelers — like comedian Dan Nainan — hate the downsizing of check-in counters. Spending huge chunks of their lives on the road, they befriend hotel employees and feel somewhat protective of them. “If I ever see a hotel without a front desk, I can guarantee you that that is a hotel I would never, ever, ever patronize,” said Nainan, who flew 200,000 miles last year. “I will turn right around on my heel and march out of that place so fast I will actually do a wheelie. What brilliant cost-cutting move will they think of next? How about hotel rooms with no beds? Imagine the savings!” But hotel chains say de-emphasizing, shrinking or removing the front desk simply gives their guests more options. Further, the tactic is part of a larger shift, they say, to entice patrons to spend more time — working or relaxing — in attractive, compelling lobbies. Courtyard’s fresh, first-floor face, which costs the chain about $750,000 per makeover, includes free WiFi, “media pods” where patrons can plug in laptops and watch TVs, plus a 57-inch, LCD touch screen — the “GoBoard” — that provides news, weather, and directions to local attractions. An eat-in bistro — “Starbucks meets Panera,” they say — offers breakfast, then later a casual dinner and cocktails. About three years ago, Courtyard’s lobby designers used Styrofoam cutouts to simulate changes — including the “welcome pedestals.”

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by | October 18, 2010 · 9:38 am

Hospitality Industry Health And Safety: Use Of “Improved Safety Practices” And “Older Workers” Contribute To A Decrease In Workers Comp Claims

“Indemnity and medical severity for workers compensation claims continued to rise in 2009…

“…the frequency of workers comp claims dropped 4% in 2009 following a 3.4% decrease in 2008. A downward trend in claims frequency that started in 1991 likely will continue through this year, NCCI said…”

Factors such as increased use of robotics, improved safety practices and an aging workforce have contributed to the continuing frequency decrease, NCCI said.

Complex claims, such as those related to carpal tunnel syndrome and lower-back issues, declined more than average during the past five years, NCCI added.

Increasing claim costs, however, have partially offset the decline in frequency. Average indemnity costs increased about 4.5% in 2009 despite a decline in average weekly wages.

“It remains to be seen whether changes in average wage and indemnity cost per claim will begin to converge in 2010,” NCCI said in the research brief.

Average medical costs for workers comp claims rose 5% last year, the lowest increase in the past 15 years, NCCI said.

For more:  http://www.businessinsurance.com/article/20101018/NEWS/101019945

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by | October 12, 2010 · 11:56 am

Hospitality Industry Employee Risk Issues: Fair Labor Standards Act (FLSA) May Require Hotel Management To Pay “Overtime Compensation” To Employees Who Use Smart-Phones “After Hours”

Under the FLSA, nonexempt employees are entitled to overtime compensation for “time spent working” beyond a 40-hour workweek. An employee does not even need to be required by the employer to work overtime but must merely do so for the employer’s benefit.

While an employee’s off-the-clock smart-phone use may amount to only a few minutes here or there—and the FLSA provides an exception for “de minimis” overtime—legal experts say an employer’s liability can mount up in a class action.

Moreover, the electronic records stored on smart phones may give an employee solid evidence on which to base an overtime claim.

     The department “has willfully violated the FLSA [Fair Labor Standards Act] by intentionally failing and refusing to pay Plaintiff and other similarly situated employees all compensation due them under the FLSA” for their after-hours Blackberry use, Sgt. Jeffrey Allen said in a suit filed in May as a proposed class action. A judge has to certify the case as a class action for it to proceed.

The case is one of a handful nationwide in which employees have claimed overtime pay for smart-phone use—and apparently the first involving public employees. But lawyers say such cases are a clear warning to employers to put a smart-phone usage policy in place before they end up in potentially costly litigation. Smart phones “are very dangerous and risky for nonexempt employees to have if you’re worried about overtime,” says Jeremy A. Roth, a partner at San Diego law firm Littler Mendelson. 

The case is one of a handful nationwide in which employees have claimed overtime pay for smart-phone use—and apparently the first involving public employees. But lawyers say such cases are a clear warning to employers to put a smart-phone usage policy in place before they end up in potentially costly litigation. Smart phones “are very dangerous and risky for nonexempt employees to have if you’re worried about overtime,” says Jeremy A. Roth, a partner at San Diego law firm Littler Mendelson.

For more:   http://www.workforce.com/section/legal/feature/legal-static-over-issuing-smart-phones-workers/index.html

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by | October 7, 2010 · 5:49 pm

Hospitality Industry Risk Management: Hotel Owner Must Review “Employment Practices Liability Insurance” Coverage Language To Determine If It Covers “Wage And Hour” Lawsuits

 In Professional Security Consultants, Inc. v. United States Fire Insurance Co., Case No. CV 10-04588 SJO (SSx), Judge James Otero recently denied an EPL insurer’s motion to dismiss a complaint seeking coverage for costs incurred to defend and settle an underlying wage and hour class action.    

The exclusionary language at issue was typical of such exclusions, barring coverage “for violations of the responsibilities, obligations or duties imposed by…the Fair Labor Standard Act…or similar provisions of any federal, state or local or foreign statutory or common law.”

The underlying litigation alleged that employer Professional Security Consultants (“PSC”) violated various provisions of the California Labor Code, including wrongfully withholding overtime compensation. PSC was insured under an EPL policy issued by United States Fire (“US Fire”). US Fire moved to dismiss the coverage action on the basis of its “FLSA” (Fair Labor Standards Act) Exclusion. Citing California law regarding the breadth and scope of an insurer’s duty to defend, the court denied US Fire’s motion.

The court noted that the policy’s definition of an “Employment Practices Wrongful Act” included “employment-related misrepresentations.” Comparing this policy language to the allegations of the complaint, the court emphasized the underlying plaintiffs’ allegation that PSC “[d]isseminated false information throughout [PSC’s] facilities and amongst [PSCs] employees, reciting that, under [PSC’s] labor policies and practices and under California law, the members of the Illegal Wages Class were not entitled to overtime compensation.” The complaint therefore alleged “employment-related misrepresentations,” triggering the potential for coverage under the policy.

The court also rejected US Fire’s argument that there was no potential indemnity coverage because any amounts allegedly owed to the underlying Plaintiffs were not covered “Loss” under the policy. The court observed that the policy’s definition of covered Loss included “damages,” and that the underlying complaint expressly sought to recover damages.

For more:  http://www.lexology.com/library/detail.aspx?g=75f1cf83-81de-43a4-8217-45ef67ed56ec

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by | October 5, 2010 · 5:39 pm

Hospitality Industry Guest Relations: “Problem Prevention” Is The Key To Customer Satisaction

J.D. Power and Associates continues to observe that high levels of customer satisfaction are dependent on problem prevention, rather than problem resolution. That is not to say that service recovery is not required when a guest experiences a significant problem; however, it is more difficult to achieve the satisfaction level of those guests who don’t experience a problem in the first place, than for guests who experience problems that are eventually resolved.

Across the industry, overall satisfaction is 144 points higher when guests did not experience a significant problem (781), compared with when they did (637). While there is a significant gap in satisfaction among the guests for whom the problem was resolved (705), compared with those for whom the problem remained unresolved (582), satisfaction still falls significantly below that of guests who did not experience a problem in the first place.

While it is possible to so impress and exceed a guest’s expectations during recovery that they are more satisfied after recovery than if they never had a problem, these are rare occurrences.  We certainly would not advocate creating false problems in order to heroically swoop in and solve the problems for guests as a business model, but it does reinforce the important opportunity recovery represents. It makes a statement to guests about your brand and how you value their business.

You might wonder, what are the most frequently occurring problems that guests cite?

Across the industry, the top three problems guests cited are:

  1. Noise
  2. Hotel/room maintenance
  3. Heating ventilation and AC problems

For more:  http://www.hotelnewsnow.com/Articles.aspx/4128/Guest-problems-better-prevented-than-resolved

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by | October 2, 2010 · 11:18 am

Hospitality Industry Employee Risks: Equal Employment Opportunity Commission (EEOC) Filed A Federal Lawsuit Against Hotel Owners Alleging “Pattern Of Racial Discrimination” In Hiring Hispanics Over Black Applicants

A federal lawsuit filed Thursday by the Equal Employment Opportunity Commission against the owners of an Eastside hotel claims black housekeeping employees were fired after they complained that Hispanic workers were paid more for doing the same work.

The suit, which alleges a pattern of racial discrimination against the hotel’s housekeeping staff and job applicants, also said the black workers were openly told they’d be fired and replaced because Hispanics cleaned better and complained less.

The EEOC filed the suit claiming racial discrimination on behalf of five fired employees of the Hampton Inn, 2311 N. Shadeland Ave., plus a group of black applicants who sought jobs at the hotel.

The EEOC suit also claims the hotel management destroyed employment records sought by the agency going back nearly two years. Incidents in the suit allegedly occurred from September 2008 to June 2009.

The suit seeks back pay and reinstatement for the fired employees, and it seeks unspecified compensation for other blacks denied employment on the basis of their race.

Hotel owners New Indianapolis Hotels LLC and Hement Thacker of Georgia could not be reached for comment. Attorneys in Indianapolis and Georgia, who formerly represented the hotel owner, declined comment.

Though employment records have been destroyed, the EEOC estimated about 30 to 35 applicants sought work at the hotel and may have been denied work based on their race.

For more:  http://www.indystar.com/article/20101001/LOCAL1803/10010388/1003/BUSINESS/EEOC-s-bias-suit-targets-hotel-on-Eastside

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by | September 29, 2010 · 6:51 am

Hotel Industry Employee Issues: Study Finds That “Front-Line” Employees That Are Envious Of Co-Workers Represent Potential Risk To Guest Relations

“Limiting envy is crucial not just to the success of the employee in his or her career, but it’s crucial to the success of the hotel itself,” said O’Neill. “The success of a hotel lies in how it treats its guests.”

Guest relationships can become collateral damage when hotel employees envy the relationships co-workers have with their bosses, according to an international team of researchers.

In the study of front-line hotel employees — desk staff, food and beverage workers, housekeepers — workers who have poor relationships with their bosses were more likely to envy co-workers with better relationships with supervisors, said John O’Neill, associate professor, School of Hospitality Management, Penn State. The study showed that the envious workers also were less likely to help co-workers or to volunteer for additional duties. The researchers report their findings in the current issue of International Journal of Hospitality Management.

“People who are less envious often go above and beyond their normal job duties to do things like cover for an employee who has gone home to help a sick family member,” said O’Neill. “Conversely workers who are more envious are less willing to perform these additional duties.”

Front-line employees are typically hourly employees who interact directly with guests. Since these employees have personal contact with guests, people staying at hotels become the unintended victims of on-the-job envy, according to O’Neill, who worked with Soo Kim, assistant professor, management and information systems, Montclair State University, and Hyun-Min Cho, tourism policy research division, Culture Contents Center, Republic of Korea.

For more:  http://live.psu.edu/story/48699

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by | September 25, 2010 · 7:08 am

Hospitality Industry Risk Management: “Premises Liability” Holds Owners And Managers Legally Responsible For Accidents And Injuries And Can Only Mitigated By “Daily Documented Property Inspections” Of Potential Hazards

“Premises liability” holds owners and property managers legally responsible for accidents and injuries that occur on property. Liability will vary depending on the legal rules and principles in place in the state where the premises liability injury occurred.

There are, essentially, three classifications of people on your property:

  • Uninvited trespassers
  • Licensees—those entering with permission for their own purposes
  • Invitees—those entering for the benefit of the owners and occupiers

Your obligations to each will vary, and your duty gradually increases as you move from trespasser to invitee.

Trespassers can be undiscovered or discovered. For an undiscovered trespasser, the obligation is not to willfully cause injury. A discovered trespasser should receive a warning of hazards that are not obvious. This is the same duty you owe a licensee.

The invitee garners the greatest obligation. Here the owner or occupier must act to keep the property in reasonably safe condition and warn the invitee of any latent defects.

For best results, employ and document daily property inspections. Have a plan in place that requires employees to keep an eye out for hazards and a system in place to document compliance with the process.

Nonetheless, injuries on your property can occur. However, liability is not automatic. If you have maintained a diligent inspection process and can document compliance, the claimant will have a difficult time proving that you knew or should have known about the condition causing the injury. This provides an avenue to escape liability.

Other traditional defenses center upon the comparative negligence of the injured person and can take many forms. For example, it includes the provision of warnings that go unheeded. It also includes hazards that are so obvious as not to require warnings, but nonetheless go unnoticed.

For more:  http://www.hotelworldnetwork.com/injuries/premises-liability-take-steps-now-protect-your-hotel

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