Category Archives: Management And Ownership

by | February 4, 2013 · 10:16 am

Hospitality Industry Business Risks: Hotel And Restaurant Companies Must Make Plans For “Natural Disasters” That Comply With Federal Employment And Safety Laws

“…Employers only have to pay em­­ployees for hours actually worked, unless they have a collective bargaining agreement or contractual arrangement that says otherwise. Normally, employees are not entitled to pay for Coastal Floodingwork that was scheduled, but did not occur because of the disaster…Floods and other natural disasters may bring allergens and pollutants to the workplace, triggering possible ADA accommodations. Employees may need time off under the FMLA…”

When Hurricane Sandy roared up the East Coast in October, it brought immense destruction to heavily populated areas. Similarly, the June 2012 derecho storm that tore through the Midwest and Mid-Atlantic produced destructive winds and at least one tornado. People in the Midwest and the South are still dealing with prolonged drought.

All brought business to at least a temporary standstill. Employers must be prepared for a variety of disaster scenarios. And while they focus on getting up and running again, they must still comply with federal em­­ploy­­ment laws.

THE LAW: The Fair Labor Standards Act (FLSA) sets strict wage-and-hour requirements for paying employees—regardless of how high the water rises. Floods and other natural disasters may bring allergens and pollutants to the workplace, triggering possible ADA accommodations. Employees may need time off under the FMLA.

Employers that must clean up their facilities may face hazards requiring worker protections under the Occupational Safety and Health Act.

WHAT’S NEW: In the wake of Hur­­ricane Sandy, the U.S. Depart­­ment of Labor has launched a disaster pre­­paredness page with guidance and contact information for both employers and employees.

Additionally, OSHA provides count­­less resources on handling flood and cleanup hazards in its Fact Sheet on Natural Disaster Recovery.

HOW TO COMPLY: Employers must deal with two very practical matters in the aftermath of a natural disaster: workplace cleanup and paying workers. Federal law affects both.

Cleaning up

A major disaster changes the workplace’s entire environment. Power may be out, gas lines may have ruptured, overhead electrical wires may be dangling. All can be deadly.

Cleanup is hard work. OSHA ad­­vises cleanup crews to use good lifting techniques and take frequent breaks. When lifting heavy objects, employees should work in teams so no one has to lift more than 50 pounds alone.

Make first aid kits readily available. Provide training so employees know how to prevent infection by cleaning and protecting cuts and abrasions. Pro­­tective clothing should include watertight boots with steel toes and insoles, long pants, safety glasses and a hard hat if there’s a danger of falling debris.

If cleanup crews encounter mold, they should wear respirators approved by the National Institute for Occupational Safety and Health.

When handling hazardous chemicals, employees must follow specific instructions for protective clothing.

When moving ladders or scaffolds, make sure employees know to watch for low-hanging power lines. When connecting generators to active power systems, instruct them to shut down and lock main breakers to prevent energizing outside power lines on which utility workers may be working. Have expert electricians inspect lines that are damaged or submerged.

Similarly, if anyone detects a gas leak, ensure they know to evacuate the building and notify utility crews.

FLSA issues

Natural disasters can wreak havoc on payroll operations. Maintain redundant systems to avoid losing payroll records and preserve the ability to issue paychecks. Many payroll companies offer cloud or offsite storage of wage-and-hour data so even if your facility is damaged or destroyed, existing payroll information is preserved.

Generally, employers must meet regularly scheduled paydays, but disasters have a way of upsetting normal routines. Employers that anticipate having difficulty meeting payroll should contact the DOL’s Wage and Hour Divi­­sion at (866) 4USWAGE (487-9243) for guidance.

For more:  http://www.businessmanagementdaily.com/34280/disaster-averted-make-emergency-preparedness-part-of-your-job

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by | February 3, 2013 · 7:24 am

Hospitality Industry Security Risks: Hotels Should Employ “Motherboard Fix” To Make Electronic Door Locks Secure From Hacking And Break-In

“It’s the older Onity locks that are subject to hacking,” Seiders said. “With the old locks, which were the best at the time, the encryption code that authorizes the lock to open has been installed on all of those individual Onity Electronic Locklocks. The hacking device, when it’s plugged into the lock, fools the lock into thinking it’s an authorized programmer. The newer locks don’t have the encryption code in each one; the code is issued at the front desk.”

Following a robbery at a Houston hotel in which thieves exploited security flaws in Onity locks first revealed at the Black Hat conference in July, Hotel Management spoke with Todd Seiders, director of risk management at Petra Risk Solutions and former director of loss prevention at Marriott, for tips on how hoteliers can keep their rooms secure.

“[Onity] immediately started offering the caps and screens to block the port that causes the vulnerability, but I don’t think that’s a very valuable option, because if you block these terminal ports and you have an emergency in the room and the lock has failed, you have to be able to plug in the portable programmer or you’ll have liability issues,” Seiders said. “The thing to take advantage of now is the motherboard switch out. If you mail it in within a reasonable amount of time they’ll replace it for free. The motherboard fix, that’s what these hotels should be doing.”

While Seiders noted that the recession has meant less money available for full-time security staff and new equipment like cameras, he emphasized the importance of staff training in hotel security. “My advice is to go walk the halls and if you see a person standing in the hallway go and look at him for 60 seconds. He’ll either go to a room, or, if not, approach him and say ‘what’s up,’ find out if you can help him. Customer service is the best security.”

Seiders also pointed out that the newer models are not as vulnerable to hacking.

In a statement from Onity, the company said, “Over the next several weeks, we will ensure all hotel properties in our database receive the mechanical solution. These mechanical caps and security screws block physical access to the lock ports that hackers use to illegally break into hotel rooms. The mechanical solution remains free of charge to customers. Technical solutions vary depending on the age, model and deployment of locks at properties.”

For more: http://www.hotelmanagement.net/operations-management/keep-your-rooms-secure-from-door-lock-hackers

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by | February 2, 2013 · 7:50 am

Hospitality Industry Property Risks: California Hotel Fire Caused By “Guest Throwing Towel Over Candle”; $30,000 In Structural And Smoke Damage

“… a man staying in the second floor room, a worker in town on business regarding the Chevron refinery HOTEL FIREshutdown, reportedly threw the towel over a lit candle in his room before he left just after 5 a.m., in attempts to put it out…hotel employees discovered the fire about five minutes later, and tried to put it out with a fire extinguisher…”

Fire crews knocked down a two-alarm fire at the Courtyard Marriott early Friday morning after a hotel occupant tried to put out a candle by throwing a towel over it, officials said.

Firefighters arrived at the hotel at 3150 Garrity Way at 5:11 a.m., to find the room had gone up in flames, billowing smoke throughout the hotel. The fire was knocked down within 10 minutes, but not before causing $30,000 in damage, Turner said.

All hotel occupants were evacuated from their rooms, Turner said. Nobody was injured, but some hotel guests were disturbed by the morning’s events.

“The Marriott did a good job of getting everyone out, giving everyone breakfast and making sure all of the guests were safe,” Turner said. “Most people were very happy.”

Fire crews were able to keep the damage to the one room, and the rest of guests were able to return to their rooms early Friday morning,

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by | February 1, 2013 · 7:45 am

Hospitality Industry Legal Risks: New York Hotel Settles Federal Class-Action Lawsuit For $550,000; “Service And Grutuity Charge” Not Paid To Workers

“…alleged that guests were not told that service charge was part of their bills. The amount of charge varied, depending on the service…in the dining room, standard meals were charged at a certain amount per diner Hospitality Industry Class Action Lawsuitswhether it was $5 or $8 or whatever, per meal, and also that the lodging charges were per night…”

Leatherstocking Corp., owner of the Otesaga Resort Hotel in Cooperstown, has agreed to pay a $550,000 settlement in a federal class-action lawsuit brought by service workers, largely over the distribution of service-charge proceeds. The workers alleged in the suit filed in Albany in 2010 that the hotel’s actions violated New York labor law the federal Fair Labor Standards Act.

The lawsuit also alleged violations of overtime and minimum-wage standards, but the bulk of the case focused on a “service/gratuity” charge that the hotel charged guests and restaurant patrons, according to court papers.

According to court documents, the hotel insisted that it properly distributed all of the service-charge money to employees. The dispute centered on which employees were paid, according to the documents.

The plaintiffs contended that management employees who were not legally entitled to a share of the payments nonetheless received them, while the hotel countered that that all of the people it paid were entitled to a share of the money.

For more:  http://thedailystar.com/localnews/x1746084500/Otesaga-pays-550-000-to-settle-lawsuit

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by | January 31, 2013 · 7:43 am

Hospitality Industry Safety Risks: California Hotel Explosion And Fire Caused By “Illicit Drug-Making Operation” In Guest Room; Walls “Blown Out” And Property Evacuated

“…all guests were evacuated and it took firefighters about 35 minutes to fully contain the flames which had reached into the third story and the attic of the hotel…Because of the drug-making substances that had caused Hotel Explosionthe hotel explosion, a hazardous-materials crew and the U.S. Drug Enforcement Administration were called in to investigate the illegal drug-making operation…”

An apparent drug-making operation in a hotel room caused a hotel explosion in San Diego on Wednesday shortly after 11 a.m. The explosion which happened in one of the hotel rooms blew out several windows and three walls, reported San Diego’s 10News on Jan. 30, 2013.

“An explosion apparently caused by an illicit drug-making process blew out walls and windows at a Midway-area hotel Wednesday and set part of it ablaze, leaving a young man gravely burned and two other people less severely hurt, authorities reported.”

The hotel explosion occurred in a hotel guest room on the second floor at the three-story Heritage Inn on Channel Way, just south of San Diego’s Interstate 8.

The man who was gravely injured during the hotel explosion had apparently lit a cigarette while using a butane spray can to try to extract hashish oil from marijuana. The flame from his lighter ignited the chemical fumes and caused them to detonate powerfully. The man who is in his early 20s suffered life-threatening burns.

Hash oil is made by packing finely ground stems and leaves of marijuana plants in a pipe and pouring butane through it. The liquid typically is then cooked on a stove to separate the butane. Hash oil averages about 15 percent THC, the chief intoxicant in marijuana. A drop or two is about as potent as a marijuana cigarette.

For more:  http://www.examiner.com/article/illegal-drug-making-hotel-room-causes-hotel-explosion-san-diego

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by | January 30, 2013 · 7:59 am

Hospitality Industry Legal Risks: Michigan Restaurant Group Settles “Class-Action Lawsuit” Alleging “False Advertising Of Halal Food Items”

“…(plaintiff’s) attorney alleged that after the restaurant ran out of Halal chicken, it sold non-Halal chicken…an investigation found that the restaurant had sold non-Halal food masquerading as Halal food “on Hospitality Industry Class Action Lawsuitsmany occasions.” The two filed a class action lawsuit in Wayne County Circuit Court in November 2011…”

McDonald’s and one of its franchises agreed to a $700,000 settlement in a lawsuit claiming that it falsely advertised some of its food as halal. Ahmed Ahmed, a Muslim man from Dearborn Heights, alleged that the chicken sandwich he ordered from the McDonald’s on Ford Road in Dearborn in September 2011 did not meet Islamic dietary standards, despite the franchise’s advertisements that it sells Halal chicken.

McDonald’s and Finley’s Management Co, which owns the franchise, agreed on January 18 to pay the $700,000, which will be split between Ahmed, his lawyers, a health clinic in Detroit and the Arab American National Museum in Dearborn. McDonald’s and Finley’s deny any liability, but say the settlement is in their best interest.

For more:  http://michiganjournal.org/2013/01/29/dearborn-mcdonalds-makes-settlement-in-non-halal-chicken-sandwich-lawsuit/

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by | January 29, 2013 · 7:21 am

Hospitality Industry Safety Risks: Texas Hotel Guest Files “Negligence Lawsuit” After Marble Tile In Elevator Falls On Child Causing “Serious Injuries”

“…as (plaintiff)  stepped off the hotel elevator, a large marble tile fell from a wall and onto the child’s head, Hospitality Industry Lawsuitchest and leg.  His bodily injuries were serious, permanent and disabling…”

An Oklahoma woman claims her son was injured at a Galveston hotel and is seeking damages in a suit against the owner. Shawna Martin filed a lawsuit against Neel Shah Hospitality Inc. on Jan. 25 in Galveston County District Court.

According to the suit, Martin and her 8-year-old son were on vacation in Galveston on Jan. 14, 2007, and the boy was injured at the at the Comfort Inn & Suites in the 6300 block of Seawall Boulevard.

“Allowing a loose tile which was inadequately secured to the wall….. posed an unreasonable risk of harm and the defendant had constructive knowledge of that risk,” the original petition says.

The defendant is blamed for:

  • Failing to properly and adequately secure the mirror to the wall;
  • Failing to perform an adequate inspection to determine whether there was a hazard present;
  • Failing to repair said mirror; and
  • Failing to warn.

For more:  http://setexasrecord.com/news/281053-woman-sues-galveston-hotel-after-marble-tile-strikes-son

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by | January 27, 2013 · 9:59 am

Hospitality Industry Legal Risks: “Severe Food Allergies” Now Classified As A Disability Under ADA Law

“…the agreement says that food allergies may constitute a disability under the Americans With Disabilities Act, if they are severe enough. The definition was made possible under 2009 amendments to the disability law Americans wih disabilities actthat allowed for episodic impairments that substantially limit activity…restaurants who post their ingredients can help those with allergies decide whether they even want to buy the food…”

The new law that now classifies severe food allergy as a disability applies to those severely allergic to gluten, peanuts, shell fish, corn, wheat, and other food allergens. What it translates to is of interest to hospitals, colleges, and other institutions to offer food and put labels on those buffet bars letting people with severe food allergies know what’s in the food. The settlement relates to the disability law. Severe, not mild food allergies can be considered a disability under the law.

A public restaurant also could be liable for a lawsuit by a customer if the business ignored a customer’s request for certain foods. But if the customer had the courage to eat there, even out of spite, and that person became ill knowing the restaurant brushed off the one customer’s request for serving food to which the customer isn’t allergic, or food not containing the ingredient responsible for the severe allergy, that case might be harder to argue because the restaurant might say the customer became sick from food eaten elsewhere.

The restaurant would have to know the customer well enough to have served food for that particular customer enough times that the cooks and food handlers or servers would know the allergy requests of that particular customer. The problem with this argument is that turnover in restaurant employees would throw the customer a curve ball so to speak, since new food handlers or cooks wouldn’t know the customer by face or name unless they were told and remembered or saw where the lists of familiar customers with allergies were posted.

For more:  http://www.examiner.com/article/federal-disabilities-law-may-help-people-with-severe-food-allergies

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by | January 26, 2013 · 7:57 am

Hospitality Industry Theft Risks: Pennsylvania Restaurant Manager Charged With Stealing Over $160,000; Made “Unauthorized ATM Withdrawals, Credit Card Purchases”

“…a certified public accountant’s review found that (he) made a string of unauthorized ATM withdrawals, unauthorized credit card purchases and unauthorized check card purchases totaling $163,601 from the employee theftbusiness accounts of Cosmopolitan…in addition to dinner cruises and visits to a strip club, (he) allegedly spent the money on household items at a retail store…”

A former general manager of Cosmopolitan in Allentown allegedly stole $163,601 from the restaurant and spent it on things like dinner cruises and visits to a strip club.

Cosmopolitan opened in October 2010. Fortunato was hired in September 2010 and promoted to general manager about a month later, District Attorney Jim Martin’s office said today in announcing the charges.

Fortunato’s responsibilities included overseeing the daily operations of the restaurant, handling employee payroll, paying bills to suppliers and collecting receipts for the business.

Fortunato also was given check-signing authority for the restaurant’s various bank accounts and ATM/debit card account at Wells Fargo Bank, a Visa card, an American Express account and access to cash receipts at the restaurant, Martin’s office said.

His responsibilities included using any of the accounts, but only for operations of the restaurant, according to the district attorney’s office.

Last June, Cosmopolitan co-owner Myron Haydt was reviewing the restaurant’s financial records and found a series of suspected unauthorized purchases by Fortunato, according to the statement.

For more: http://www.lehighvalleylive.com/allentown/index.ssf/2013/01/former_manager_of_allentowns_c.html

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by | January 25, 2013 · 9:21 am

Hospitality Industry Property Risks: New York Hotel And Restaurant Suffers “Significant Water Damage” After Frozen Pipe Bursts; $200,000 Damage From Third Floor To Basement

“…A water pipe had frozen and burst early Wednesday morning…the pipe was connected to the facility’s sprinkler system and the malfunction triggered a response from the Geneseo Fire Department…The pipe burst Hotel Water Damageon the third floor, pouring water into a guest room and working its way down to the basement. There was “significant damage” in several parts of the building including two parlors, dining rooms and guest rooms and spaces above and below the rooms…”

The Big Tree Inn, 46 Main St., remains closed after a water pipe burst on Wednesday, flooding several areas of the landmark building and causing significant damage from the third floor to the basement. Big Tree Inn will remain closed through Friday, but Scott is hopeful that at least part of the facility will be able to open some time during the weekend.

Scott estimated repairing the damage will cost $200,000 or more. The restaurant does have insurance.

Facility managers were alerted to a problem by a guest who reported hearing what was believed to be a small leak. An investigation revealed the bigger problem.

For more:  http://thelcn.com/2013/01/24/burst-water-pipe-causes-significant-damage-at-big-tree-inn/

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