Category Archives: Management And Ownership

by | November 19, 2012 · 7:26 am

Hospitality Industry Legal Risks: Michigan Hotel Sued By EEOC For "Terminating Pregnant Housekeeper"; Employers May Not Exclude Pregnant Women Based On Their "Concerns About Safety Of Unborn Child"

“…Ramin fired a housekeeper shortly after it learned of her pregnancy. The company stated that it could not allow her to continue to work as a housekeeper because of the potential harm to the development of her baby…”

The U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit today charging that Ramin, Inc., a Comfort Inn & Suites franchise owner in Taylor, Mich., violated federal law when it terminated a pregnant housekeeper because of her pregnancy.

Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, protects female employees against discrimination based on pregnancy, and the Supreme Court has expressly rejected the notion that an employer may exclude pregnant women from employment based on its own concerns about the safety of the unborn child.

The EEOC seeks injunctive relief to prevent Ramin from discriminating against pregnant employees or applicants in the future, as well as monetary relief on behalf of the victim.  The EEOC filed suit after first attempting to settle the case through its conciliation process.

“Pregnancy discrimination is rarely subtle,” said Lauren Gibbs Burstein, attorney in the EEOC’s Detroit Field Office.  “Employers may not bar pregnant employees from work because of outdated myths or stereotypes.  The EEOC will vigorously defend the rights of pregnant workers to provide for their families by remaining employed.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-13-12c.cfm

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by | November 18, 2012 · 7:16 am

Hospitality Industry Property Risks: Indiana Restaurant Suffers "Severe Structural Damage" As Car Crashes Into Dining Room; Customer Hospitalized In Serious Condition

“…the building suffered severe structural damage…the Indianapolis Fire Department’s Structural Collapse Rescue Team was called in to secure the building and prevent it from further collapse…the female customer was taken to (the hospital) in serious condition…”

Wayne Township Fire crews responded to an accident near West Washington Street and Lynhurst Saturday after an SUV crashed into the dining room of a restaurant – pinning a customer between the car and the counter.

A passenger inside the SUV said she and her daughter-in-law, who was driving, were headed east on Washington when a van pulled out in front of them.  She said her daughter-in-law swerved to avoid it, but lost control and crashed into the building.

Mariah Taylor was working at a fast food restaurant next door when she heard the crash, ran over to help along with a co-worker, and saw the woman who was pinned.

The passenger in the SUV suffered only a scratch. She said her daughter-in-law was able to get out of the vehicle on her own.

Wayne Township Fire officials said they haven’t been able to confirm the number of employees in the business at the time of the accident. There were no other injuries reported.

For more:  http://www.wishtv.com/dpp/news/local/marion_county/suv-crashes-into-restaurant

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by | November 17, 2012 · 7:18 am

Hospitality Industry Theft Risks: Hawaii Hotel Store Shoplifter Steals $2,000 Worth Of Merchandise; Surveillance Cameras Record Theft

A shoplifter brazenly stole more than $2,000 worth of merchandise from a small clothing and jewelry shop in a Waikiki hotel. The whole theft was recorded on surveillance cameras, and the video has been posted online in an effort to nab the suspect.

[youtube=http://www.youtube.com/watch?v=L7CoKibjaDo&feature=youtu.be]

The theft happened Nov. 5 at the Angels By The Sea store at the Waikiki Beach Marriott Hotel. The surveillance video clearly shows a woman looking through some of the clothing. She then removes the clothing from its hanger, rolls it up, and casually puts it in a large bag.

The store’s owner said the woman told the sales clerk a story. According to store owner and designer Nina Thai, the woman claimed to be a jewelry designer from Kauai. “‘I make a lot of jewelry, so I want to have time to take a look so leave me alone,'” Thai said the woman told the clerk.

The store usually has two or three clerks on duty, but Thai said the store was short-handed that day, and only had one clerk at the time. And when that lone clerk was busy with a customer, the shoplifter helped herself to the jewelry.

The store’s management said they discovered the theft because the shoplifter had moved a lot of the jewelry from their usual places. “Because we stay in here more than at home,” said Thai. “So we remember every single item.”

And then they saw the surveillance video, and watched as the woman took earrings, necklaces, pendants, leggings and tops. The haul was the by far the biggest theft in the store’s three-year history.

For more:  http://www.hawaiinewsnow.com/story/20124145/shoplifter-ignores-surveillance-cams-video-now-on-youtube

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by | November 16, 2012 · 8:58 am

Hospitality Industry Security Risks: Major Hotels Increase Review Of Guest Security Processes After Recent Reports On Door Lock Vulnerability

“…An assault on guests or theft of their belongings during a hotel stay can result in a court case…the “reasonable person” test is used to determine the outcome. If hotel owners are made aware of a procedure or item in their property that is not keeping the guest safe, they are required to do what a reasonable person would do under those circumstances. “And if they don’t, they’re negligent…”

Recent media reports scrutinizing the vulnerability of guestroom door locks have brought hotel guest safety issues to the forefront of hoteliers’ minds. As the media and traveling public continue to express their concerns, hotel companies are taking steps to ensure a safe environment for guests.

Marriott International, for example, issued a statement on its website that said the company is in the process of implementing solutions to resolve any issues with door locks that could compromise guest safety.

Reevaluating standards and policies
As hotel management companies and major hotel brands continue to review security processes and implement solutions, there are a few points for hoteliers to keep in mind when it comes to guest safety, according to Fred Del Marva, president of hotel consulting firm Del Marva Corporation.

Guest safety starts at the front desk during the check-in process, Del Marva said. The standard policy throughout the industry is for front-desk employees not to verbally issue guests their room numbers, he said.

For more:  http://www.hotelnewsnow.com/Articles.aspx?ArticleId=9384&par1=z7Vqd2AtHfkNLvAuP25I0Q==&par2=2EAFVJU1Lms7zTjNNV7iNMJVd1wKf1Q9bx5n/Mqpu2K12/66UcXBIn1NuEvyifCh&goback=.gmp_922967.gde_922967_member_186188808

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by | November 14, 2012 · 7:10 am

Hospitality Industry Legal Risks: Kentucky-Based Restaurant Group Faces "Telephone Consumer Protection Act" Class-Action Lawsuit For "Unsolicited Text Message Advertising"

“…each alleged violation of the act, which consists of a brand sending an unsolicited advertisement via phone call or text message without prior consent, carries up to $500 in statutory damages…text messages allegedly were sent to thousands of Papa John’s customers without their consent because OnTime4U obtained the cell phone numbers of customers from the implicated franchisees…”


A U.S. District Court judge in Seattle has certified a class-action lawsuit against Papa John’s International Inc., calling for as much as $250 million in damages for the alleged transmission of 500,000 text messages to consumers who claim they did not consent to receive such texts.

Three named Papa John’s customers and potentially many more are suing the Louisville, Ky.-based operator or franchisor of 4,000 Papa John’s Pizza restaurants for allegedly violating the Telephone Consumer Protection Act.

The lawsuit, first filed in February by Washington state resident Maria Agne, stems from text messages Agne claims she received without her consent in April 2010. The texts, which promoted Papa John’s products and offers, allegedly came from marketing services provider OnTime4U, which had contracted with several Papa John’s franchisees in the Pacific Northwest.

OnTime4U allegedly indicated to the franchisees — who operate as many as 21 Seattle-area units in Rain City’s case and 12 Portland, Ore.-area restaurants in Rose City’s case — that those messages would not be considered spam or violate the TCPA because those customers had previously ordered a pizza from the franchisees, establishing an “existing business relationship,” which exempts calls and texts from oversight of the TCPA.

According to Coughenour’s order, Kevin Sonneborn, franchisee of PJ Sound Pizza LLC, testified that customers were not asked for their permission to send text messages before their phone numbers were given to OnTime4U.

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by | November 13, 2012 · 7:41 am

Hospitality Industry Legal Risks: New Jersey Hotels Sued For "Price Goughing" During Superstorm Sandy; Fines Up To $10,000

“…(the state sued) a Howard Johnson Express in Parsippany…New Jersey law defines price gouging as an “excessive price increase,” or of 10 percent or more, during a declared state of emergency…Businesses sued by the state face penalties of $10,000 for a first offense and $20,000 for a second offense…”

New Jersey accused seven filling stations and a hotel of gouging customers during the state of emergency after Hurricane Sandy by raising prices as much as 59 percent.

The storm last week killed more than 100 people, triggered an almost 14-foot tidal surge, displaced thousands and knocked out power to millions. It crippled mass transit and interrupted supplies of gasoline.

“We warned merchants again and again not to violate the law by taking advantage of people following this catastrophe,” Chiesa said. “The fact that we have these fringe businesses that think that disasters are a profit center is troubling.”

The state Division of Consumer Affairs got 2,000 complaints about price gouging for gasoline, generators, food and lodging, according to Chiesa. About 83 percent involved gas stations, he said. About 4 percent of the state’s 2,400 gas retailers were subject to subpoenas.

For more: http://www.businessweek.com/news/2012-11-09/new-jersey-plans-price-gouging-suits-against-8-businesses

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by | November 12, 2012 · 7:49 am

Hospitality Industry Crime Risks: Florida Restaurant Thieves Steal Safe Containing $35,000 In Cash; Break In Through Wall In Business Next Door

“The burglars got into the restaurant by breaking into a neighboring business and entering through a wall. Once inside the restaurant, they took the safe and the surveillance system…”

Thieves broke into a restaurant on Flagler Street overnight, stealing a safe that contained $35,000 in cash.
According to NBC 6, thieves broke into El Caribe Cafe at 7173 W Flagler Street sometime between midnight and 4 a.m. Monday morning.

About four months ago, thieves broke into the same restaurant, entering through the roof.

Police are investigating the crime, and doubt one thief acted alone. Miami police spokesperson Kenia Reyes confirmed evidence was left at the scene, but is not disclosing what it is at this time.

For more:  http://blogs.miaminewtimes.com/shortorder/2012/11/thieves_steal_35000_in_restaur.php

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by | November 10, 2012 · 7:57 am

Hospitality Industry Employee Risks: California Hotel Settles "Sexual Harassment And Retaliation Lawsuit" With EEOC For $195,000

In 2010, a female employee filed the EEOC charge of discrimination alleging that a male supervisor made sexual comments and referenced an image of a sexual nature.  The female employee further alleged that upon reporting the sexual harassment, the male supervisor retaliated against her by issuing written discipline and treating her differently.

DNC Parks & Resorts at Tenaya, Inc. which operates Tenaya Lodge, a hotel and resort near Yosemite National Park in California, will pay $195,000 and furnish other relief to settle a federal charge of sexual harassment and retaliation filed with the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

Following an EEOC investigation, the director of EEOC’s Fresno Local Office determined that there was reasonable cause to believe that the female employee was sexually harassed due to her gender, female, and that she was subjected to retaliation for reporting the harassment, a violation of Title VII of the Civil Rights Act.  The EEOC also found reasonable cause to believe that a class of other female employees was also sexually harassed due to gender.  Tenaya Lodge denied the allegations of sexual harassment and retaliation, and the company did not admit to liability while agreeing to settle the matter.

Following the EEOC’s determination, the EEOC entered into a one-year conciliation agreement with Tenaya Lodge and the female employee in question.  The agreement effectively settles the case administratively, thereby avoiding litigation.  The agreement provides for $100,000 in monetary relief for the female employee who filed the EEOC charge.  An additional $95,000 is designated as a class fund for eligible claimants who also encountered sexual harassment and/or retaliation while working at Tenaya Lodge.

Aside from the monetary relief, Tenaya Lodge will provide equal employment opportunity training for all current employees and, thereafter, for all new hires in the language that the employee understands, along with additional training for managerial and human resources staff on how to deal with discrimination, harassment and retaliation.  Tenaya Lodge also agreed to post a notice about the settlement in English and Spanish; to report future instances of discrimination to the EEOC; and to publicize the settlement via press release.

Workers have the right to report sexual harassment or other forms discrimination on the job without negative repercussions,” said Melissa Barrios, director of the EEOC’s Fresno Local Office.  “We commend Tenaya Lodge for working with the Commission to resolve this matter and for agreeing to implement measures to protect their employees from harassment, discrimination and retaliation.”

For more:  http://www.eeoc.gov/eeoc/newsroom/release/11-7-12.cfm

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by | November 8, 2012 · 7:48 am

Hospitality Industry Property Risks: Iowa Restaurant Fire Burns "Undetected For More Than An Hour"; More Than $450,000 In Damage

Fire fighters crawled through the restaurant and extinguished small fires and burning embers throughout the interior…They spent hours on scene dealing with hot spots in the above-ceiling crawl space and attic of the one-story building…the building didn’t have a sprinkler system and damage is estimated at more than $450,000.

A fire in a Des Moines restaurant likely burned for more than an hour before being detected and it took firefighters several more hours to completely extinguish all the hot spots, officials said. Crews responded to Montana Mike’s, 5030 NE 14th St., around 5:10 a.m. Tuesday to find dark gray smoke from floor to ceiling, fire officials said.

Heavy smoke and heat made seeing initially impossible and limited the use of a thermal imaging camera, officials said.

The fire started in the back of the restaurant, near office equipment, storage and laundry machines, authorities said. The cause is still under investigation.

For more:  http://blogs.desmoinesregister.com/dmr/index.php/2012/11/07/fire-burns-undetected-for-an-hour-at-local-restaraunt/article?nclick_check=1

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by | November 7, 2012 · 7:48 am

Hospitality Industry Security Risks: Florida Hotel And Management Company Ordered To Pay $1.7 Million To Victim Of "Car Jacking" In Parking Lot; "Inadequate Hotel Security And Burned Out Lights In Parking Area"

“…evidence showed “security was present, but spent more time delivering bed items, towels, and bell carts to guests rather than patrolling the exterior of the hotel and serving as a deterrent to crime. The hotel provided a ‘uniformed housekeeper,’ not security…”

In addition, lights that would have illuminated the area where the crime occurred were burned out and hadn’t been replaced for months.

An Orange County jury Friday ordered Hilton Embassy Suites, Interstate Management Company, and SecurAmerica to pay a combined $1.7 million dollars in restitution to Troy Anderson, who was shot in 2008 while parking his car at the Hilton Embassy Suites on Jamaican Court, near International Drive.

Anderson filed a lawsuit in 2009 for the shooting that occurred on the premises of the Hilton Embassy Suites on September 26, 2008, when he was shot multiple times during a car jacking. He sustained serious and life-threatening injuries as a result. (Troy Anderson v. Hilton Hotels, et al., Case No. 2009-CA-040473-O, Fla. 9th Judicial Cir.).

A former Regional Manager, Chuck Klawitter, testified the hotel would “wait until enough lights were burned out to justify getting a ‘hi-light’ to replace the burned out lights.” Klawitter and two other former SecurAmerica employees, Emmanuel Denau, a former Quality Assurance Supervisor, and Rob Wombolt, a former Operations Manager, testified they brought their security concerns to the attention of the hotel and the security company.

Witnesses testified that the area where hotel personnel instructed Mr. Anderson to park his vehicle was “very dark,” even though it was only 50 or 60 feet from the hotel entrance. Crime Scene Investigator (CSI), Gerardo Bloise, Orange County Sheriff’s Department (OCSO), photographed and documented the scene and his photographs confirmed that a critical floodlight intended to illuminate the area where Mr. Anderson parked was not working on the night he was shot. CSI Bloise confirmed in his testimony the area was “very dark.”

Assistant Hotel General Manager, Victor Vergara, claimed and testified at trial, contrary to the evidence, that all the lights were working and the parking lot lighting was “perfect.”

Jurors also learned that a similar strong-armed robbery had occurred in the parking lot of the Embassy Suites ten days prior. Deputy Lourdes Clayton of the OCSO appeared on the scene of the armed robbery ten days earlier and was on the Hilton Embassy Suites’ property for approximately an hour. The hotel and security company denied knowing she was on the property though in following protocol she would have arrived with lights and sirens on as the call was a Code 3 emergency. She also completed an “incident report,” which is a public record and which was brought out in her testimony at trial where she verified she was on the property for “approximately an hour.” The victim who was robbed at gunpoint, 72-year-old Roger Kraft from Ohio, stayed an additional two nights at the hotel, yet the hotel and security company argued he did not tell anyone about being robbed despite the fact his wallet, cash, and credit cards were stolen. Allen told the jury the assertion was “ridiculous.” Mr. Kraft unfortunately passed away a year and a half ago.

For more:  http://news.yahoo.com/orlando-hotel-ordered-pay-1-7-million-dollars-082430903.html;_ylt=A2KJjakMeZpQcGcAaXDQtDMD

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