Category Archives: Liability

Hotel Industry Employee Issues: Report Finds “Fraud And Misuse” Of H-2B Guest Worker Program By Hotel Management And Owners

The H-2B program for unskilled non-agricultural migrant workers is one of the nation’s many alien worker programs, and one that, according to a recent Government Accountability Office report, is subject to extensive fraud and abuse.

The H-2B program is both smaller than the H-1B program, for high tech workers, and subject to considerably less attention. In terms of visa issuances, one measure of the size of these programs, there were 44,847 H-2B visas issued in FY 2009, compared to 110,367 H-1B visas. These numbers are from the annual Report of the Visa Office at the State Department.

Since the H-1B program displaces American workers with college degrees, and depresses wages where the high-tech workers are concentrated, it secures a lot more public attention that the H-2B program, which operates at the other end of the labor market, where employers hire landscapers, forest workers, waiters, and other less-skilled workers.

GAO’s report on the troubles with the program are based on a solid foundation; the agency’s auditors found ten closed criminal and civil cases in which courts had decided that employers had misused the program and abused their alien workers. The highlights of these cases, as quoted in the report, are as follows:

Hotel owners forced H-2B workers to work in substandard conditions, confiscated workers’ passports, and threatened workers that they would be sent home in a ‘box’ if they disobeyed orders . . .

Workers from India paid at least $20,000 for H-2B visas to enter the U.S. but were never employed by the construction company . . .

Conspirators fraudulently obtained H-2B certifications from Labor for over 3,800 individuals, leased workers to undisclosed businesses not listed on the visa petitions, [and] defrauded the government of $7.4 million in payroll taxes . . .

The nation would do just fine without any H-2B program at all; the only “cost” would be that some marginal employers would have to increase their wages a bit to attract workers to their jobs.

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

Hotel Industry Security Risks: Connecticut Hotel Pays Damages To Settle Civil Suit Brought By Woman Assaulted In Hotel Garage By A “Drifter” Who “Roamed The Garage For Hours”

The Tresser Boulevard hotel was accused of failing to prevent the 2006 assault in which a drifter roamed the garage for hours

Surveillance cameras in hotels.

before sexually assaulting a woman named in court papers as “Jane Doe.”

The victim claimed Fricker had been in the hotel and garage and acted suspiciously for days leading up to the sexual assault. The lawsuit alleged the hotel security staff failed to notice him or make him leave.

A woman raped at gunpoint in front of her children four years ago in the Stamford Marriott parking garage has settled a civil lawsuit filed against the hotel for an undisclosed amount of money.

Attorneys involved in the lawsuits would not comment about details in the case, which was withdrawn this September and resolved using a private alternative dispute resolution firm.

“It’s been resolved to the satisfaction of both parties and no further comment will be made,” said Donald Derrico, a lawyer representing the Stamford Marriott Hotel and Spa. The Tresser Boulevard hotel was accused of failing to prevent the 2006 assault in which a drifter roamed the garage for hours before sexually assaulting a woman named in court papers as “Jane Doe.”

Gary Fricker, a Danbury native and transient carpenter, was arrested three days after the October 2006 assault and was sentenced a year later to 20 years in prison. Wanted in Florida on arson charges, Fricker roamed the Marriott parking garage looking for victims before targeting a then-40-year-old mother, an arrest affidavit said.

One woman called police after the assault and said a man matching Fricker’s description was following her around the garage about an hour before the attack. A second woman reported her ATM card stolen from the garage that afternoon. Fricker tried to use it later that day, police said.

Authorities say Fricker put a gun to the back of the victim and forced her young children into their minivan, where he raped the woman after trying to rob her. He fled when the woman screamed and a car passed by. He was arrested in White Plains, N.Y., and immediately confessed to the attack.

The civil lawsuit was filed in March 2008, six month after Fricker was sentenced. The victim claimed Fricker had been in the hotel and garage and acted suspiciously for days leading up to the sexual assault. The lawsuit alleged the hotel security staff failed to notice him or make him leave.

The hotel had no security director or internal security policies at the time of the assault, according to a deposition in the case.

More than a year after the lawsuit was filed, controversy erupted over special defenses filed by lawyers hired by the Marriott that claimed the woman was careless, negligent and failed to “exercise due care” for her own safety and for the safety of her children. Attorneys said if the defense wasn’t raised they might have lost a chance to bring it up again in the future.

For more:  http://www.stamfordadvocate.com/news/article/Settlement-reached-in-Marriott-rape-case-860707.php

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

Hospitality Industry Credit Card Risks: Hotel Owners And Management Must Store “Credit Card And Guest Receipts” In Secure Locations To Prevent Identity Theft

“… (the defendents) found boxes of monthly credit card receipts from previous hotel guests. Box by box, they and others lifted them from the hotel, officials allege…”

The receipts, officials say, helped the men manufacture counterfeit credit cards in document “boiler rooms” and card “chop shops,” which they then used to buy $300,000 worth of merchandise in Texas, Oklahoma and Louisiana.

The merchandise, which included tow trailers, televisions, all-terrain vehicles and tires, then was resold or pawned.

The hotel didn’t learn of the thefts until August 2008, and since then, federal investigators have learned at least 17,000 receipts were stolen in what they say is San Antonio’s largest identity theft case.

Details had remained sketchy until the ringleader, Ruben “Hollywood” Costello, 36, recently pleaded guilty to ID theft fraud conspiracy, access device fraud, and conspiracy to launder money, and documents in the case were unsealed.

They identify Jones, 34, as his partner in the crimes and name him and Flaharty, 31, as two people who helped take the records from the Emily Morgan.

They also reveal Costello used a network of associates, methamphetamine addicts and others to maintain the scheme, and used an Elmendorf trucking company he ran, RD&N Hauling, to launder the money.

The cardholders never realized their credit card accounts had been compromised until months, even years, after they stayed at the hotel. But the damage made it hard for some of them to get loans and left lingering headaches in trying to straight things out, officials said.“When you look at these types of crimes, you may think the victim is the vendor or the credit card companies,” Assistant U.S. Attorney Tom McHugh said. “What we see is that the person whose identity is stolen, his problems may go on for years.”

For more:  http://www.mysanantonio.com/news/local_news/article/Ringleader-pleads-in-S-A-s-largest-ID-theft-case-859510.php

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

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

Hotel Industry Risk Management: “GuestChecker.com” And Its “Twitter” Site Represent A Trend In Current And Future Web-Based Solutions To Guest Security Issues

http://twitter.com/GuestChecker

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Filed under Guest Issues, Liability, Management And Ownership, Risk Management, Technology

Hotel Industry Liability Issues: “Bed Bug” Court Verdicts Have Recently Found Hotel Owners Liable When “Conscious And Deliberate Behavior” Allowed Infestations To Proliferate

The recent surge in bed bugs has created an uptick in litigation against motel owners and landlords alike.  duLac’s article focuses on a Maryland attorney who is filing a series

Bed Beg infestations at hotels can result in guilty verdicts against hotel owners if conscious and deliberate behavior led to infestations going untreated.

of bed bug liability suits.  The typical compensatory damages claim is $200,000, and many of the suits claim punies.  Bed bug suits, in Maryland and elsewhere, generally face three major issues.

First, plaintiff will have to prove notice on the part of the motel owner or landlord.  Actual notice is best, but constructive notice should suffice.  For constructive notice, the focus will be the length of time the condition (bed bugs) has been in place.  The Maryland suits contain mostly conclusory allegations, so discovery will be important.

Second, plaintiff will have to establish compensatory damages.  Bed bugs are nasty creatures, and I have a lot of sympathy for people impacted by them.  Plaintiffs in Mathias got a jury verdict for compensatory damages of $5,000.  A Florida attorney quoted in duLac’s article is leaving the bed bug liability field because the damages are too small.  He noted that he settled one case for $4,000 and another for $10,000.

Finally, a fairly standard punies regime requires a plaintiff to prove some type of conscious and deliberate behavior on the part of the defendant.  In Mathias, the hotel owners were informed about the bed bugs.  Instead of paying for a $500 extermination, the owners allowed the bed bug situation to fester for nearly two years.  It was widely known the hotel had bed bugs.  There were certain rooms that employees were not supposed to rent out because of the bugs, yet the rooms were rented if there were not enough other rooms available.  Guests were informed the bugs were ticks (as if that’s better!).  Under these circumstances, the court upheld a punies verdict of $186,000.  If proving notice in the Maryland cases will require the discovery of significant facts, for punies the bar is even higher.

For more:  http://lawprofessors.typepad.com/tortsprof/2010/11/bed-bug-liability.html

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Filed under Claims, Guest Issues, Health, Liability, Management And Ownership, Risk Management

Hotel Industry Cyber-Crime Risks: Hotels Are #1 Target For Credit Card Data Theft As Centralized Processing And Economic Downturn Delay Encryption Software Upgrades

 “Because of the downturn in the economy, a lot of industries have stopped upgrading their software,” he said. “So they’re very open for being hacked at any point.”
A recent study shows the hotel industry is especially open for being hacked.
 
“The main reason is they’re such a central hub for where people run their cards,” Jones said.

 
Recent studies show hackers steal credit card data from hotels more than any other industry. 

“It’s not if it’s going to happen, it’s when it’s going to happen,” said John Sileo, a Denver resident who had his credit card information stolen on a recent business trip. “The Driskill Hotel had an entire database of customer information stolen. Mine was one of them.”

“Because of the downturn in the economy, a lot of industries have stopped upgrading their software,” he said. “So they’re very open for being hacked at any point.”

A recent study shows the hotel industry is especially open for being hacked.

Ryan Jones, a data-security consultant with Trustwave, has been watching a steady increase in hotel hacking.

Trustwave found that out of all the hacking cases they investigated last year, 38 percent involved hotels, well ahead of financial services (banks) at 19 percent and retail at 14 percent.

Destination Hotels and Resorts, headquartered in Englewood, is just one of the major chains that got hacked.

This summer, they told guests at 21 hotels across the country that their credit cards might be compromised.”Because of the downturn in the economy, a lot of industries have stopped upgrading their software,” he said. “So they’re very open for being hacked at any point.”

A recent study shows the hotel industry is especially open for being hacked.

Ryan Jones, a data-security consultant with Trustwave, has been watching a steady increase in hotel hacking.

“The main reason is they’re such a central hub for where people run their cards,” Jones said.

Trustwave found that out of all the hacking cases they investigated last year, 38 percent involved hotels, well ahead of financial services (banks) at 19 percent and retail at 14 percent.

Destination Hotels and Resorts, headquartered in Englewood, is just one of the major chains that got hacked.

This summer, they told guests at 21 hotels across the country that their credit cards might be compromised.

For more:  http://www.thedenverchannel.com/money/25881609/detail.html

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

Hotel Industry Employee Issues: Unions Unite To Highlight “Housekeeper Workloads” And Workplace Injuries (Video)

[youtube=http://www.youtube.com/watch?v=nfqf5KoVXRg]

Hyatt housekeepers have been given excessive work loads in cleaning extra rooms to the extent that they are experiencing numerous work injuries. In addition, their exhaustion at the end of the work day is seriously eroding their family lives.

On Nov. 18, 2010 a protest was held at the Hyatt Regency Chicago to draw attention to this. Supporting the housekeepers (members of UNITE HERE Local 1) were some 50 labor and community activists, including CACOSH (Chicago Area Committee on Occupational Safety and Health) Director Emanuel Blackwell who declared “work should not hurt.”

To dramatize the excessive work load of the housekeepers, the protesters marched with mops and buckets up to the entrance of the Hyatt to explain that they were there to help the housekeepers do their work. They were not allowed in. One housekeeper brought some fitted bed sheets as examples for the management to consider instead of the non-fitted sheets the workers are forced to use, causing extra backbreaking work when making beds. When she left the sample sheets at the hotel, management had the police write her a ticket for littering. Length – 7:28. Produced by Labor Beat. Labor Beat is a CAN TV Community Partner. Labor Beat is a non-profit 501(c)(3) member of IBEW 1220.

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Filed under Health, Labor Issues, Liability, Management And Ownership, Risk Management, Training

Hotel Industry Health And Safety Issues: Bed Bug Infestations Have Been Reported In All 50 States And Restricted Use Of Pesticides Will Make Eradication Efforts Difficult (Video)

[youtube=http://www.youtube.com/watch?v=qAEavqJS9eI]

Prior to World War I, nearly 30 percent of all homes were infested with bed bugs. Widespread use of pesticides such as DDT all but eradicated bed bugs for nearly 50 years. But with declining use of pesticides and the elimination of DDT, bed bugs have staged a comeback and are reported in all 50 states. There is even an iPhone app that allows users to track bed bug sightings. Dr. Jeffrey Levin of the U.T. Health Science Center at Tyler discusses bed bugs in this post to the U.T. Health Science Center at Tyler’s YouTube Channel.

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Filed under Guest Issues, Health, Liability, Management And Ownership, Risk Management, Training

Hospitality Industry Employee Issues: Hospitality Owners And Management Should Verify Employment And Utilize “E-Verify” Through The U.S. Citizenship And Immigration Services

E-Verify is an Internet-based system that compares information from an employee's Form I-9, Employment Eligibility Verification, to data from U.S Department of Homeland Security and Social Security Administration records to confirm employment eligibility.

Why E-Verify?

Why do people come to the United States illegally?  They come here to work.  The public can, and should, choose to reward companies that follow the law and employ a legal workforce.

The U.S. Department of Homeland Security is working to stop unauthorized employment.  By using E-Verify to determine the employment eligibility of their employees, companies become part of the solution in addressing this problem.

Employment eligibility verification is good business and it’s the law.

 

Who Uses E-Verify?

More than 225,000 employers, large and small, across the United States use E-Verify to check the employment eligibility of their employees, with about 1,000 new businesses signing up each week.

While participation in E-Verify is voluntary for most businesses, some companies may be required by state law or federal regulation to use E-Verify.  For example, most employers in Arizona and Mississippi are required to use E-Verify. E-Verify is also mandatory for employers with federal contracts or subcontracts that contain the Federal Acquisition Regulation E-Verify clause.

For more:  http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=

e94888e60a405110VgnVCM1000004718190aRCRD

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Filed under Labor Issues, Legislation, Liability, Management And Ownership, Risk Management, Technology, Training