Category Archives: Management And Ownership

Husband and wife cheated workers’ compensation

Tip: This is why it is important for hotels to request certificate of insurance from their vendors. 


Indicted for hiding the existence of 800 hotel workerslaw, justice

Hyok “Steven” Kwon and his wife, Woo Hui “Stephanie” Kwon, were sentenced to prison yesterday (March 15) for concocting and carrying out a complicated scheme to avoid paying workers’ compensation insurance premiums and employment taxes for their janitorial company, Irvine-based Good Neighbor Services. He was sentenced to eight years in custody and she got four years and eight months. Each has been ordered to pay $5 million restitution to insurance carriers and the California Employment Development Department.

They were indicted in December for hiding the existence of 800 hotel workers and thereby evading personnel-related taxes. At the time of the indictment, their caper was considered the largest insurance premium fraud in San Diego history.

Among the hotels serviced by the company were the Hotel Del Coronado, Grand Del Mar, La Costa Resort & Spa, Loews Coronado, and L’Auberge Del Mar.

See article at




Comments Off on Husband and wife cheated workers’ compensation

Filed under Hotel Industry, Injuries, Management And Ownership, Workers' Compensation

Lawsuit Alert-Hotels Renting to Minors


Friday, January 13, 2017

In recent days, CH&LA and AAHOA members in California have been receiving demand letters for refusing to rent to unaccompanied minors. The person at the center of these claims (Jonathan Asselin-Normand) is continuing his long-running campaign against California hoteliers.

This time the complainant seems to be targeting properties through third party online booking sites. In most cases, a demand letter is accompanied by a draft lawsuit. Please be on the lookout for mail or an email from this person.

Both the California Unruh Civil Rights Act and the Fair Employment and Housing Act prohibit blanket policies denying accommodations to people solely because they are unaccompanied minors. Violations can result in monetary damages and the payment of attorneys’ fees.

Click HERE to read CH&LA’s alert.

Comments Off on Lawsuit Alert-Hotels Renting to Minors

Filed under Hotel Industry, Management And Ownership

Petra will be at CH&LA’s New Year, New Laws Seminar – Anaheim

If you are near Anaheim, CA, you don’t want to miss CH&LA’s annual seminar on the new laws affecting hoteliers in 2017.
Our very own Todd Seiders, Director of Risk Managment, will be presenting at the seminar.

Register today at CH&LA

Comments Off on Petra will be at CH&LA’s New Year, New Laws Seminar – Anaheim

Filed under ADA, Bed Bugs, Conferences, Employee Practices, Food Illnesses, Guest Issues, Hotel Employees, Hotel Industry, Housekeeping, Human Resources, Legislation, Management And Ownership, OSHA, Pool And Spa, Privacy, Risk Management, Technology

Mitigating the Risk of Food-Borne Illnesses at Hotels

Think of a hotel located near a stretch of bucolic farmland. Picture the large fields of crops, cows and sheep grazing behind picturesque fences. While this may seem like a calm and relaxing scenario, one that attracts guests eager to get a taste of the country life, they could be getting a mouthful of something much less appetizing. Flies are abundant in areas with livestock, and, unfortunately, can transmit food-borne diseases.

Ron Harrison, Ph.D., a technical services director at pest control specialist Orkin, is currently working with a number of hotels suffering from pest problems, and, as a result, compromised food safety. “Hotels have to do everything they can to ensure that pests don’t enter the property, because they can cause food-related illnesses if they get access to the property’s food supply,” Harrison says.

food borne

Pests are just one of many factors that can affect food safety and spread food-borne illnesses, which are a major issue in the United States. Francine Shaw, president of Food Safety Training Solutions, a company that offers food-related consulting and training services, says that food poisoning affects one in six Americans every year. And, in that same time frame, it also causes the hospitalization of 120,000 people and leads to 3,000 deaths. “It seems like every time we turn on the television, pick up a newspaper, or read the news online, there’s another outbreak. But the amazing thing is that the huge, multi-state outbreaks spotlighted in the news are only responsible for 11 percent of all food-borne illnesses,” she explains.

More on the article:

Comments Off on Mitigating the Risk of Food-Borne Illnesses at Hotels

Filed under Business Interruption Insurance, Claims, Food Illnesses, Guest Issues, Health, Hotel Employees, Hotel Industry, Hotel Restaurant, Management And Ownership, Risk Management

The Impact of Training on Your Bottom Line

Training is an important aspect in every hotel as it is the basis for cultivating superior guest service, maintaining costs, retaining employees and increasing profitability. While some owners and operators may question the return on investment (ROI) of training, the effects of not placing importance on consistent, ongoing staff training can be far greater over the long run. Preparing employees for situations, outlining role responsibilities and explaining how they are important in overall success can lead to happier employees, alleviate misunderstandings, skirt potential issues and result in better guest experience. That leaves more time for staying focused and creating a positive guest experience.

Select a Training Method to Meet Your Property’s Needs

The good news about staff training is there are different methods to embrace for achieving your property goals. What often occurs is training becomes a mixture of solutions.

Outside Speakers

Hotel owners and operators may utilize outside speakers to visit a property ranging from brand representatives, motivational speakers to notable local personalities.

Employee Handbook

Most properties assemble an employee handbook for new hires, while branded hotels may pay to send a representative to conduct training sessions on their brand. The key to effective training is assuring the handbook is comprehensive and continually updated to reflect changes in roles, responsibilities, policies, etc.

Click to read the article:

Comments Off on The Impact of Training on Your Bottom Line

Filed under Employee Practices, Hotel Employees, Hotel Industry, Management And Ownership

The Ransomware Dilemma: Is Paying Up a Good Idea?

The ongoing fight against ransomware attacks and the cyber criminals perpetuating this menace is more than a full-time job. In a cyber world without boundaries, ransomware has become a worldwide problem where no organization is immune to victimization.

According to some security experts, the first known reports of ransomware attacks took place in Russia in 2005. Over the past 10 years, these attacks have spread to all corners of the globe, successfully targeting hundreds of thousands of business systems and home PCs. And, the effects are mounting: the FBI reported ransomware-driven losses of $18 million over a 15-month period in 2014 and 2015.

The way ransomware works is by making an infected device unusable by locking the screen or system, encrypting its data and then demanding a ransom to unlock and decrypt this data. In some cases, once the user’s PC is infected, the ransomware also displays threatening messages disguised as coming from a law enforcement agency in order to appear credible while intimidating the PC owner. Payment is usually demanded in the form of bitcoins, a virtual currency that is untraceable.


This is apparently what happened at Hollywood Presbyterian Medical Center in California in early February 2016 when it fell victim to malware, which locked the hospital’s computer infrastructure. According to reports, to remain operational and continue providing patient care, the hospital was forced to use “old school” methods including paper records, faxing, and good old-fashioned pen and paper.

In a letter regarding the attack, following a bitcoin payment of $17,000, hospital CEO Allen Stefanek stated “…The quickest and most efficient way to restore our systems and administrative functions was to pay the ransom and obtain the decryption key. In the best interest of restoring normal operations, we did this.”

Click here to read the entire article:

Comments Off on The Ransomware Dilemma: Is Paying Up a Good Idea?

Filed under Business Interruption Insurance, Claims, Crime, Hotel Industry, Insurance, Management And Ownership, Privacy, Technology, Theft

Safety & Security Tips for Hotel Management

Providing an accommodating atmosphere that doesn’t compromise safety is the biggest challenge that hotels face. Achieving these goals requires a multifaceted plan that starts with staff training and guest education about safety and security issues. Management must also consistently enforce established security policies, such as allowing only registered guests on hotel property. Constant planning to stay ahead of these issues is also a must, especially when the hotel hosts public events.

hotel security

Control Access
Controlling access is an important part of hotel security planning to prevent criminals from stealing money and valuables from guest rooms. Management must train contractors and staff in controlling room key distribution and restricting access to registered guests only. During off-hours, security personnel should be stationed at all main access points to greet people, while deterring anyone with no business on the property, including disruptive or intoxicated non-guests.


Educate Guests
Hotel staff has a responsibility to educate guests about safety and security responsibilities. The challenge is getting the message across without negatively affecting the customer’s experience. For example, the bellman can stress the importance of locking hotel room doors to prevent strangers from entering. Front desk clerks can also discourage guests from actions that leave them vulnerable to thieves, such as flashing room keys or yelling room numbers across the lobby.

Patrol Public Areas
Technology has come a long way in helping hotels to upgrade basic security measures. Closed-circuit TV cameras with recording systems are essential for securing such busy public spaces as bars, docks, lounges, and parking lots. However, these areas also allow open access for disruptive persons, muggers and pickpockets. Active monitoring of the camera images by staff and proper lighting reduces the opportunities for such crimes. Offering a security concierge to escort guests also minimizes the risk of non-assaultive crimes, such as luggage thefts.

Advance Measures
Communicating basic safety and security measures becomes even more important at public events such as conventions, where travelers may feel as if they’re leaving real world dangers behind. To head off problems, management should send advance communiques to event attendees. The notices should contain basic safety tips, such as the need for locking doors, not leaving cellphones and laptops unattended, and being alert in public areas.

For more info: ( )

Comments Off on Safety & Security Tips for Hotel Management

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

What’s your data breach response plan?

data breach

While businesses prefer to avoid cyber perpetrators entirely, these days nearly all organizations are at risk of a breach.

As the number of incidents (and claims) continues to rise, the prudent strategy is for firms to not only work diligently to prevent an intrusion, but also to have a plan in place to respond quickly and effectively if they suspect information has been compromised.

A data breach response plan proactively outlines the necessary actions a business must take, providing a framework that can be regularly matched against emerging risks and updated if the firm’s situation changes — for example, if additional staff are added in key data privacy or technology roles or if partnerships are formed that could change the way sensitive information is processed.

Developing a data breach response plan, one that is easy to follow and quick to implement, gives businesses time to prepare the necessary resources and mitigate the damage an exposure can inflict. Leaving key tasks to the last minute, such as scrambling to identify qualified outside legal counsel, is unwise and can significantly impact the timeliness and expense of a breach response. Likewise, pulling the plug on a single server without seeking guidance from an experienced technology expert may not shut down the unauthorized access that caused the exposure, thus leaving the business open to further harm. Worse, it may even erase key information a computer forensics company may need to assist the investigation. Getting the firm’s ducks in a row in advance of any breach is a far more effective cyber mitigation strategy.

One component of many small business breach response plans is accessing the financial and technical support available through a well-structured Cyber Liability insurance policy. Coverage options vary widely, so businesses (or the insurance broker) must carefully examine their needs before crafting a policy. For those firms with lean internal resources and thin financial margins, the right insurance can be a key asset when it comes to implementing a solid breach response plan. Below, three steps that will help organizations mitigate data breach disruptions before they occur.

1. Assemble the team

Who needs to be involved in responding to a breach? Before attempting to pull together more than a cursory list of post-exposure action items, it’s critical that the firm identify those individuals or groups that should be contacted in the event of a potential breach. The team will vary from one business to the next, but most organizations will want to include representatives from the executive group, legal (either internal or an outside consultant), privacy or information security, risk management, information technology, human resources and public relations.

Given the growing reliance on external partners — cloud providers, payroll processors and the like — firms should also consider where vendor touchpoints exist and how or when those third parties will contribute to the breach response process. They may need to be included on the contact list or they may even be responsible for raising the initial alarm if a breach occurs. It’s also important to ensure vendor contracts clearly spell out the company responsible when a breach occurs and who is liable for notifying those impacted. Other vendors are also commonly part of the response team, such as media relations consultants experienced in crisis management and notification firms with the resources necessary to quickly inform breach victims about the situation.

If the business has Cyber Liability coverage, the insurance company should also be part of the breach response plan. There are support services included in many policies that will be helpful in the event of an exposure, ranging from forensic investigation teams to data recovery specialists. To maximize the value of any applicable coverage, firms must be ready to access available features quickly and through the most efficient channels.

Click to read the article

Comments Off on What’s your data breach response plan?

Filed under Crime, Insurance, Liability, Management And Ownership, Risk Management

Managing the Storeroom Right

When hotels talk about inventory management, it is usually in terms of rooms—you can’t make money without guests in rooms, whether it is a guestroom, meeting room, or ballroom. But let’s step back and think about what it takes to ensure you have those rooms ready for weddings, groups, family reunions, conferences, and individual travelers.

Have you ever had to scramble to a Plan B solution because you were out of stock on a repair item, such as a joint for the bathroom sink or paint to touch up the trim, or inexplicably ran out of light bulbs? What did it cost you to send someone out on a special run to pick up that item or move a guest to another room while you waited for the part to fix that sink? Even without a maintenance problem, turning rooms can be delayed if your staff does not have the cleaning items needed to do their jobs, despite the significant amount of money you budget for those supplies.

managing housekeeping cart

As you can imagine, the concept of inventory management is one that can apply to the products used to maintain and repair your hotel to keep it running at optimum levels as well.

Through research, Grainger discovered that among organizations surveyed, employees leave the supply closet empty-handed 22 percent of the time because they cannot find what they’re looking for. It could be because that item is misplaced, out of stock, or being used by someone else in the hotel. Whatever the cause, the item isn’t there when needed, despite the investment you made to purchase and stock that item. The chances are extra products will be purchased to fix that specific issue, and the worker will either hold on to that extra for fear of needing it again and not being able to find it, put it where he or she believes it goes (which may not be the same place other workers look for it), or place it where it goes and in doing so, find the missing product (because he or she did not see it the first time or it was returned to its proper location after being used). That translates into wasted time and money, and if it happens enough, a world of frustration.

But how can that happen when it seems like your supply rooms are exploding with products, and some of them seem like they have been there for ages? Interestingly, the same research mentioned above also revealed that only 5 percent to 15 percent of maintenance, repair, and operations (MRO) inventories are frequently used, and an equal percentage of the items are duplicated—because you cannot afford to not have a backup supply. You want to avoid having too much of an item, yet do not want to be caught without enough to meet immediate needs. You want to ensure the right products are in the right place at the right time with minimal expense and effort.

Inventory management programs can help. Whether you choose to manage your MRO inventory yourself or have the supplier manage it for you, there are benefits to be gained. A systematic approach based on real usage data can help you make sure you have the right products on hand to maintain your facility, without over investing in items that you don’t need.

For more info: ( )

Comments Off on Managing the Storeroom Right

Filed under Maintenance, Management And Ownership

How Overtime Rule Will Affect Hospitality

It might only be June, but hoteliers are already preparing for how the U.S. Department of Labor’s (DOL) recently announced overtime rule will impact their properties when it takes effect Dec. 1. The rule, introduced on May 18 by the Obama administration, will broaden the number of workers eligible for overtime pay by raising the salary threshold for exempt workers to $47,476 from $23,660 per year.
Ryan Glasgow, Hunton & Williams labor and employment lawyer, has been advising employers in preparation for the final DOL rule, which will likely set the salary requirement for the professional, executive, and administrative exemptions at 40 percent of the national average for all non-hourly compensation in all industries.

clock overtime

“The DOL’s intention in increasing the salary was to increase the opportunities and increase the compensation pay to a lot of workers,” Glasgow says. “About 4 million workers are either going to be entitled to overtime or now receive an increase salary as a result of the change.”

Since hotels employ a large number of workers who fit the bill, many properties will go through an adjustment period as they restructure based on employees’ current wages.

“In the hospitality area, it’s the frontline, entry-level managers who will mostly be affected,” Glasgow says. “They have been, thus far, exempt under the Fair Labor Standards Act (FLSA) executive exemptions. The problem is a lot of those frontline managers are currently making somewhere between $23,000 and $47,476. The hospitality industry is going to take a look at each one of those employees and decide if they’re going to increase that salary to the $47,476 level, or reclassify this person as non-exempt.”

For more info:

Comments Off on How Overtime Rule Will Affect Hospitality

Filed under Employee Practices, Hotel Employees, Hotel Industry, Labor Issues, Management And Ownership, Uncategorized