Category Archives: Liability

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 29, 2010 · 9:13 am

Hospitality Industry Health Issues: Second Annual Federal Bed Bug Summit To Be Held On February 1 and 2, 2011 In Washington DC

Momentum is gathering behind a planned federal summit on bed bug control. Bed bugs are now spreading beyond the nation’s beds. They’ve been found in numerous public spaces, including federal office buildings. The Federal Bed Bug Work Group encompasses several agencies, including the EPA and the departments of Housing and Urban Development, Agriculture, Defense and Commerce. Also, the National Institutes of Health and the Centers for Disease Control and Prevention.

The summit will be held from 8:30 a.m. to 6:00 p.m. at the Georgetown University Hotel and Conference Center  in  Washington DC 

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by | December 27, 2010 · 9:42 am

Hotel Pool Safety And Health: Use Of A “Food Grade Enzyme” Can Reduce High Phosphate Levels In Hotel Swimming Pools That Result In “Overchlorination”, Leading To Guest Eye Irritation, Lung Damage And Asthma

The Clarion Hotel in Portland cut its chlorine use by 87 percent.

The phosphates reduce the chlorine’s effectiveness. Adding a food grade enzyme to the water reduces the phosphate level and allows chlorine to do its work. Not only is less chlorine needed, but it also lasts longer, Cooke said.

The pool was part of a test project with the state of Maine Department of Environmental Protection to help reduce use of the chemical, which has been linked to skin and eye irritations, lung damage and asthma. The project also saved some money.

“It is very easy,” said Peter Cooke, DEP pollution prevention program manager. The agency funded the project with a $30,000 federal grant. Overchlorination is common at public swimming pools because of the high levels of phosphates, Cooke said. Phosphates occur naturally in some water but are commonly added by water treatment plants to prevent corrosion in municipal water pipes.

The phosphates reduce the chlorine’s effectiveness. Adding a food grade enzyme to the water reduces the phosphate level and allows chlorine to do its work. Not only is less chlorine needed, but it also lasts longer, Cooke said.

Don Hopkins, operations manager for the Olympia Companies, property management company of the Clarion Hotel, said regular swimmers at the pool immediately noticed a difference.

“They said it smelled better and the water felt softer on the skin, ” Hopkins said.

He said workers at the hotel also noticed the difference. Hopkins said adding the enzyme to the 30,000-gallon pool saved $200 a month in chlorine costs, compared to the $130 monthly cost of the enzyme. The company is now looking to reduce chlorine at pools at some of its other hotel properties, he said.

For more:  http://www.onlinesentinel.com/news/using-enzyme-reduces-need-for-pool-chlorine_2010-12-21.html#

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by | December 26, 2010 · 12:06 pm

Hospitality Industry Guest Health And Safety: Hotel And Spa Owners Must Maintain Clean Workout Facilities, Pools And Spas

Gym Equipment Spreads Skin Infections

  • Staph infections, including those caused by methicillin-resistant Staphylococcus aureus (MRSA) bacteria, can spread through shared gym equipment, mats and towels.
  • Infections tend to occur near a cut or scrape, and on certain body parts (the armpits, buttocks, groin and neck).
  • They start off looking like a large pimple but can swell, become painful and produce pus.
  • If they spread to your bloodstream, they can be life-threatening.
  • Many clear up on their own, but seek medical attention if a fever develops or if the area becomes enlarged, red, tender or warm.

Prevention:

  • Use the alcohol spray or wipes that most gyms provide to wipe off equipment before and after use.
  • Place a clean towel over mats used for doing sit-ups, stretching or yoga.
  •  Don’t share towels with others.
  • Wash your hands frequently with soap and water, or use an alcohol-based sanitizer.
  • Shower after working out. If you have a cut or scrape, keep it covered with a clean adhesive bandage and don’t use hot tubs or whirlpools.

Dirty Pools Teaming With Bacteria

  • Poorly maintained swimming pools are common, allowing bacteria and viruses to cause outbreaks of gastrointestinal illness.
  • Inspections at 3,666 health clubs in 13 states found serious lapses requiring the immediate closing of 10 percent of the pools (Centers for Disease Control and Prevention)
  • Improperly maintained circulation and filtering systems and skimpy disinfection were among the most common problems.

Prevention:

  • Require showers with soap before swimming and wash your hands after using the toilet or changing a baby’s diaper.
  • Don’t use the pool if the water has a strong chemical smell or appears cloudy.
  • Pool water should have little odor and be clear enough that you can easily see the bottom.
  • Chlorine and pH levels should be checked at least twice a day, and the pool’s latest inspection score should be recorded.
  • Chlorine should be 1 to 3 parts per million (4 to 6 ppm for hot tubs), and pH should be 7.2 to 7.8.

For more:  http://www.washingtonpost.com/wp-dyn/content/article/2010/12/20/AR2010122004711.html?wprss=rss_health

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by | December 21, 2010 · 5:23 pm

Hospitality Industry Information Security Risk: Study Finds Indentity Fraud Increased by 12% In 2009 To $54 Billion

Javelin Strategy & Research, a group that does studies on identity theft and fraud, released its 2010 Identity Fraud Survey Report toward the beginning of the year. It found that the top two types of personal identification being compromised in a data breach were:
  • Victim’s full name (63%)
  • Physical address (37 percent).
  • Social Security numbers being compromised in data breaches decreased from 38 percent in 2008 to 32 percent in 2009.

It also reported that the number of identity fraud victims in the United States had increased by 12 percent to 11.1 million adults in 2009, the annual fraud amount increased by 12.5 percent to $54 billion.

But the study also found that an increasing number of consumers are fighting back against identity theft and taking necessary precautions to preserve their personal information.

The average fraud resolution time dropped 30 percent to 21 hours, and nearly half of all victims were reported to have filed police reports that ended up doubling the reported arrests, tripling the prosecutions, and doubling the percentage of convictions in 2009.

“The 2010 Identity Fraud Survey Report shows that fraud increased for the second straight year and is at the highest rate since Javelin began this report in 2003,” said James Van Dyke, president and founder of Javelin Strategy & Research.

“The good news is consumers are getting more aggressive in monitoring, detecting and preventing fraud with the help of technology and partnerships with financial institutions, government agencies and resolution services.”

Javelin researchers believe the increase in fraud is due in part to the economic downturn, when historically fraud increases.

Robert Siciliano, a researcher with McAfee Inc., identified the top 10 riskiest places for people to lose their Social Security numbers, with colleges and universities coming in at number one. Banking and financial institutions were second and hospitals were third.

According to identitytheftlabs.com, younger adults and small business owners tend to be the victims of identity theft because they often engage in “risky activities” that can lead to them being victimized more frequently.

Read more: The Daily Home – Fight back against identity theft

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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 15, 2010 · 10:01 am

Hospitality Industry Identity Theft: Las Vegas Hotel Industry Is Target Of Cybercriminals Who “Skim Wireless Transmissions” And Intercept Credit Card Data And PIN Numbers On Low-Cost/High Tech Devices

Law enforcement officers learned last week how easy it is to have one’s identity stolen when a cybercrimes expert powered a $30 machine and intercepted some of the wireless transmissions coming from their smart phones as they sat in a UNLV conference room.

“It’s absolutely an arms race,” said Feffer, who also investigates cybercrime for the Los Angeles County district attorney’s office. “You see vulnerabilities in software exploited by criminals. Then you see the software companies patch those vulnerabilities and then the criminals develop new ones. That’s why you have to make sure everything is up-to-date and currently patched. What was good last year is by no means safe this year.”

As cybercriminals seek new ways to outsmart police and the public, crime-fighting agencies are increasingly turning to cyber-experts to show them the latest high-tech equipment used in identity theft scams.

One of those experts is Justin Feffer, who conducts seminars for identity theft detectives nationwide on behalf of the FBI and LifeLock, an Arizona company that specializes in identity theft protection.

“It’s absolutely an arms race,” said Feffer, who also investigates cybercrime for the Los Angeles County district attorney’s office. “You see vulnerabilities in software exploited by criminals. Then you see the software companies patch those vulnerabilities and then the criminals develop new ones. That’s why you have to make sure everything is up-to-date and currently patched. What was good last year is by no means safe this year.”

That’s the reason nearly 100 officers from Metro Police, North Las Vegas, Henderson, the state Gaming Control Board and other agencies attended the conference.

It included a demonstration of skimming devices that criminals use to steal credit and debit card information, including PIN numbers, from card-swiping machines that have become increasingly present at Las Vegas restaurants and retail outlets.

Speaking outside the conference room, LifeLock spokesman Mike Prusinski emphasized the importance of training. “Most of the individuals in that room have absolutely no idea what a skimming device looks like or what the wiring looks like. We’re opening their eyes to these things.”

The interview took place outside the room because the FBI and LifeLock don’t want the public — including the media — to know what law enforcement is learning about the tricks of identity thieves.

Nevada has been a hotbed of identity theft for years. The state last year ranked fifth in the nation with 106 complaints per 100,000 residents — 2,802 complaints total — that were fielded by the Federal Trade Commission. That’s down from 130.2 complaints per 100,000 residents in 2005, when Nevada ranked second. The agency did not explain why the numbers for Nevada are down.

The FTC data paint only a partial picture of the problem because many victims file complaints only with police instead of also with the commission. But the number of identity theft crime reports filed with Metro from January through Nov. 13 — 2,063 — is down from the 2,440 filed during the same period in 2009.

For more:  http://www.lasvegassun.com/news/2010/dec/15/pickpockets-strike-through-ether/

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by | December 14, 2010 · 6:36 am

Hotel Industry Employee Risks: Texas Hotel Owners “Failed To Carry Workers’ Comp Insurance And Enforce Safety Procedures” Says Suit Brought By Banquet Service Employee Who Was Injured On Job

On or about August 13, 2009, Plaintiff suffered an injury to her right shoulder area when a co-worker, Banquet Manager, Gus Garza, suddenly and without warning struck her while opening a door which was intended to be an exit door instead of an entrance door as he was using it,” the suit filed Dec. 7 in Jefferson County District Court states.

She claims the defendant companies — HTL Operating doing business as Elegante Hotel and Investment Corporation of America — did not carry workers’ compensation insurance at the time of the incident. As a result, Howard claims she should be entitled to all common-law damages.

A Beaumont woman has filed suit against the owners of a hotel where she claims she was injured while working as a banquet server. Sharon Howard alleges she was performing her duties as a banquet server at MCM Elegante Hotel in Beaumont on Aug. 13, 2009, when she sustained injuries to her shoulder.

Because of the incident, Howard suffered a severe and permanently disabling injury to her right shoulder and has not been able to work, according to the complaint.

She blames the hotel for causing her injury and for the pain and suffering she endured, as well as the medical costs she incurred.

The hotel’s owners negligently failed to enforce proper safety procedure and failed to properly equip doors, according to the complaint.

In her suit, Howard is seeking a judgment in excess of the minimum jurisdictional limits of Jefferson County District Court, plus pre- and post-judgment interest, costs, attorney’s fees and other relief the court deems just.

John Werner of Reaud, Morgan and Quinn in Beaumont will be representing her.

For more:  http://www.setexasrecord.com/news/231951-hotel-server-sues-over-shoulder-injuries

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by | December 13, 2010 · 9:53 am

Hospitality Industry Employee Risks: Denver Hotel Forced To Pay $105,000 To Settle “Sex Discrimination” Suit Filed By “Equal Employment Opportunity Commission” (EEOC)

The suit alleged that the company denied an employee a promotion because of her gender, and “due to its discriminatory and stereotyped assumptions regarding [the worker’s] ability to do the job because of her status as a woman with young children.”

“Making assumptions about a woman’s ability to perform a job which are not grounded in fact, but instead on stereotyped assumptions about her inability to work long hours due to her child care responsibilities, is unlawful discrimination,” said EEOC Regional Attorney Mary Jo O’Neill.

The owner of Denver’s Brown Palace Hotel & Spa has agreed to pay $105,000 to settle a sex-discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission, the EEOC announced Wednesday.

The agency filed the suit on July 20 in U.S. District Court in Denver against Brown Palace owner Denver Hotel Management Co. Inc.

Discrimination based on a woman’s caregiver status is a form of sex discrimination prohibited by Title VII of the Civil Rights Act of 1964, the EEOC said.

At the time the suit was filed, Marcel Pitton, the hotel’s managing director, said the agency’s allegations were “unfounded,” and no admission of guilt was announced Wednesday.

“The Brown Palace Hotel is an equal opportunity employer and maintains a workplace free of unlawful discrimination. We are proud of our diverse workforce and the talent of our staff in delivering exceptional hospitality,” Pitton said in a July statement.

According to an EEOC statement, Denver Hotel Management has agreed “to revamp its discrimination policies and conduct training for all of its employees to explain how stereotypes concerning a person’s family responsibilities can constitute illegal sex discrimination.”

Read more: Brown Palace owner settles EEOC suit | Denver Business Journal

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by | December 12, 2010 · 8:19 am

Hotel Pool Safety: Hotel Owners Should Review Designs Of Fountains, Drains And Water Troughs To Prevent Drownings

Hyatt spokesman Pete Hillan says the hotel has emptied the fountain and erected a barrier around the 29-inch-deep trough where the boy was found.

The barrier will serve as a temporary solution, as hotel officials look to permanently change the fountain’s design.

A toddler found floating in a fountain at a downtown hotel suffered life-threatening injuries.

The unidentified boy remains hospitalized, a day after officers pulled him from a decorative fountain at the  Hyatt Regency Hotel and revived him using CPR.

The officers went to the hotel after the 18-month-old boy’s mother reported him missing. Fire officials tell the San Francisco Chronicle the incident appeared to be an accident.

Hyatt spokesman Pete Hillan says the hotel has emptied the fountain and erected a barrier around the 29-inch-deep trough where the boy was found. The trough serves as the fountain’s drain.

For more:  http://www.wsbt.com/news/ktla-fountain-toddler,0,1847787.story

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