Category Archives: Management And Ownership

by | September 12, 2012 · 6:09 am

Hospitality Industry Legal Risks: Kansas Hotel Owners Indicted For Hiring "Undocumented Workers And Paying Them In Cash"; Government Seeks "Forfeiture Of Properties"

“…the (hotel owners) are charged with one count of conspiracy to harbor  undocumented workers for personal gain, five counts of harboring  undocumented workers for personal gain and four counts of wire fraud…The government is seeking to forfeit the proceeds of the crimes, including the two hotels the couple own. The government would seize the properties and then sell them, gaining money for taxpayers. The couple failed to pay the government the payroll taxes that they should have…”

The owners of two Kansas City-area Clarion hotels have been indicted on charges of knowingly hiring undocumented workers who were paid less than other employees. Munir Ahmad Chaudary, 51, and his wife, Rhonda R. Bridge, 40, both of Overland Park, own the Clarion Hotel at 7000 W. 108th St. in Overland Park and the Clarion Hotel at 11828 NW Plaza Circle near the Kansas City International Airport.

Both pleaded not guilty on Tuesday. U.S. Attorney Barry Grissom said the grand jury’s indictment alleges Chaudary and Bridge knew they were hiring undocumented workers to serve as housekeepers. This gave them a competitive advantage over law-abiding hotel owners, Grissom said.

“They paid the undocumented workers less and they paid them in cash. Their economic motive was to cut their costs and to get an advantage on other hotels that abided by the law,” Grissom said.

“This prosecution is aimed at unscrupulous employers who are a driving force behind illegal immigration,” Grissom said. “We’re going to go after people who are hiring them.”

The indictment alleges that in December 2011 investigators from DHS Homeland Security Investigations and the Kansas Department of Revenue received information that the two hotels were employing undocumented workers.

Investigators interviewed hotel employees and found out that most of them were illegally in the United States.

In June 2012, an undercover agent took a job as a housekeeper at the Clarion hotel in Overland Park, Grissom said.

The agent made it clear to Chaudary and Bridge when he was hired that he was unlawfully in the United States and had no documents allowing him to be employed, according to the indictment.

For more: http://www.kctv5.com/story/19512719/us-attorney-barry-grissom-holds-news-conference

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by | September 11, 2012 · 6:10 am

Hospitality Industry Property Risks: West Virginia Hotel Fire Destroys 30 Rooms, Killing One Man

“…Witnesses told authorities the fire appeared to start in the top section of the motel’s west wing, but no cause has been determined… The fire destroyed about 30 rooms…”

The West Virginia Fire Marshal’s Office says a Louisiana man has died of burns he suffered during a weekend hotel fire. Media outlets identified the victim as 21-year-old Dustin McCellen.

The marshal’s office didn’t provide his hometown, and the chief investigator on the Wilsonburg blaze didn’t immediately respond to a message Tuesday.

McCellen was an oil and gas industry worker who was staying at the Towne House West Motor Lodge when it caught fire early Sunday morning.

No one else was injured. Many of the rooms were rented by other gas workers who had gone home for the weekend.

For more:  http://www.wowktv.com/story/19511136/la-gas-worker-dies-of-burns-from-wva-motel-fire

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by | September 10, 2012 · 6:20 am

Hospitality Industry Guest Safety: California Hotel "Re-Emphasizing Safety Policies" After Woman Falls From 11th-Floor Balcony In Apparent Suicide

After the latest incident, Wood emphasized to hotel employees the importance  of their training for Intervention Procedures certification, a program designed  to help employees prevent intoxication, underage drinking and drunken  driving…”A lot of people don’t understand that we are not a public place. This is a  private business, and we have the right to refuse service to anyone,” Wood said.  “We want to protect our guests, and that’s where our training comes into  play.”

Officials at the Crowne Plaza Ventura Beach Hotel say they are re-emphasizing  safety policies after the death of a 36-year-old Santa Barbara woman who  recently fell from an 11th-floor balcony. The woman’s death was determined to be a suicide, according to Ventura County  medical examiners. The woman fell from the balcony about 7:30 p.m. Aug. 30 and  hit the roof of the C-Street Restaurant below,Ventura police said.

Douglas Wood, general manager of the Crowne Plaza, said the hotel’s balcony  rails measure between 42 and 42.5 inches in height. According to guidelines set  by the International Building Code, hotel balcony railings must be at least 42  inches high, and the space between rails cannot be greater than 4 inches.

Hotel balconies also must be able to withstand a strong load, to make sure  the railings don’t fall down if someone pushes on them, according to the  code. The Crowne Plaza meets all three standards, said Jeffrey Lambert, Ventura’s  community development director.

Still, it was the seaside hotel’s third fall this year. On June 1, a  60-year-old Ventura woman committed suicide by jumping from a 12th-floor fire  escape staircase. On Jan. 13, a man suffered severe injuries after falling off a  balcony and hitting a concrete pool deck.

After the June incident, Wood said, the hotel decided to install tempered  glass along the fire escape staircase.

Wood said there are no plans to change the structure of the balconies. The  hotel underwent a complete renovation in 2006.

Former requirements call for balcony rails to be at least 36 inches tall and  no greater than 6 inches apart, said Chad Callaghan, a security consultant for  the American Hotel and Lodging Association.

Some hotels have taken other preventive measures, such as restricting roof  access, checking later on guests who seem troubled when checking in, and doing  away with patio furniture on balconies, which may invite children to climb on  top of them, Callaghan said.

Other hotels have placed labels on sliding-glass doors warning parents to  watch their children and never leave them unattended on the balcony, he said.  Sliding-glass doors at the Crowne Plaza have a sticker in the shape of a palm  tree to protect guests from walking into the glass.

“No matter what type of railing a hotel room may have, there is no substitute  for common sense and good parenting,” Callaghan said.

And despite laws designed to protect hotel guests from injuries and falls,  officials say, suicides may be unavoidable.

“The hotel has a responsibility to protect guests. They don’t have a legal  duty to provide reasonable protection against suicides,” Callaghan said. “If a  person wants to commit suicide, they’re going to find a way to do it.”

Read more:  http://www.vcstar.com/news/2012/sep/09/ventura-hotel-re-emphasizes-safety-policies-fall/#ixzz264jtAdSi – vcstar.com

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by | September 9, 2012 · 7:47 am

Hospitality Industry Crime Risks: California Hotels Victimized By Armed Robbery Suspects Who Would "Climb Over Front Counter And Steal Cash Drawer"

“…Surveillance video caught a recent hotel robbery…a suspect, with a handgun, climbs over the counter and steals the cash drawer.  In other cases, the crime turns violent…one hotel worker was punched in the face…”

Five suspects are in custody inNorthern California for crimes that may be tied to a string of robberies in theCentral Valley.  Two suspects are adults, three are juveniles.  Jamaul and Justina Baker, one 15-year-old and two 14-year-olds were arrested Wednesday night after allegedly robbing a hotel and convenience store inPlacerCounty.

Most of the victims up and down the state had similar stories.  A trio of masked robbers march into hotels and demand money.  Sometimes they become violent.  Eight hotels in the Central Valley and over a dozen in the state were hit.  Now the crime spree appears to be over.

In less than a week, robbers hit eight hotels and motels in the Central Valley:  Two in Fresno off the 99, then down the freeway to Selma and Kingsburg.  Over to the I-5, places in Coalinga, Firebaugh, Santa Nella and Patterson are robbed.

For more:  http://www.cbs47.tv/news/local/story/Hotel-robbery-suspects-caught/ATAsl2HFE0O57_ClJj62Ag.cspx

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by | September 8, 2012 · 6:10 am

Hospitality Industry Employee Risks: Restaurant Owners Use "Written Integrity Tests" To Limit High Costs Of "Employee Theft And Drug Use"

“…restaurant  owners  must address ethical issues when evaluating job applicants for  employment.  Historically, employers have relied upon reference checks,  criminal background checks and interviews to address these issues…now a growing number of restaurant owners use written integrity testing  to improve their  ability to screen  out high risk job  applicants…”

Employee theft and other forms of counterproductivity are highly significant  factors in determining the success of restaurants.  While employers tend to  have some awareness of the frequency with which employees engage in theft, drug  use and other counterproductive behaviors, the following research findings are  helpful in providing an objective  perspective of  how  frequently  these problematic behaviors occur:

  • The National Restaurant Association recently reported that the cost of  employee theft for its members is $8.5 billion annually or approximately 4  percent of food sales.
  • A study released in 2007 by the U.S. Substance Abuse and Mental Health  Administration indicated that the highest rate of illicit drug use occurs among  restaurant workers. A whopping 17 percent admitted to illegal drug use in the  last month.

Extensive research documents that integrity tests are good predictors of  whether an individual will engage in various forms of workplace  counterproductivity (e.g., theft, illegal drug use).  Also, these  assessments do not adversely impact minority candidates, which is a major  downside to criminal background checks.  Further, integrity tests are  relatively inexpensive and can be easily administered online. As a result, high  risk applicants can be screened from contention before wasting time and money on  interviews, criminal background checks and reference checks.

Read more at  http://www.business2community.com/human-resources/screening-job-applicants-to-minimize-employee-theft-and-other-forms-of-counterproductivity-in-the-restaurant-industry-0274014#MbysIc4cypbhdqY1.99

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by | September 7, 2012 · 6:20 am

Hospitality Industry Employment Risks: Florida Restaurant Group Faces Lawsuit For "Failing To Pay Minimum Wages" And Forcing Employees To Work "Off-The-Clock" (Video)

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

[youtube=http://www.youtube.com/watch?v=PoEWJzbMDw0]

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

Darden Restaurants Inc, best known for its Olive Garden and Red Lobster chains, was hit with a lawsuit in federal court in Miami on Thursday accusing one of the largest U.S. restaurant operators of violating federal labor laws by underpaying workers at its popular eateries across the country.

Filed under the Fair Labor Standards Act, it also claims many Darden employees have failed to receive appropriate overtime wages for work in excess of 40 hours per week.

Only two plaintiffs are named in the 19-page complaint filed on Thursday in U.S. District Court for the Southern District of Florida.

For more:  http://in.reuters.com/article/2012/09/06/usa-darden-lawsuit-idINL2E8K6HAN20120906

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by | September 6, 2012 · 6:07 am

Hospitality Industry Legal Risks: California Restaurant Chain Faces Class Action Lawsuit For "Race, Color And Age Discrimination"

The suit alleges that In-N-Out Burger “recruits, hires and maintains a work force that is predominantly under the age of 40 and/or non-African-American.”…the suit also seeks back pay as well as compensatory damages and punitive damages on behalf of people who have been unlawfully denied employment with In-N-Out Burger.

A Berkeley law firm has filed a class action lawsuit alleging that Irvine-based restaurant chain In-N-Out Burger maintains hiring practices that discriminate on the basis of race, color and age. The suit, which was filed in Alameda County Superior Court on Tuesday, was filed on behalf of two black men from Oakland over the age of 40 who recently applied for jobs at In-N-Out Burger restaurants in Oakland and San Francisco but weren’t hired.

The suit says both men were qualified for the jobs they applied for and alleges that they weren’t hired because of their race and their age.

The restaurant chain has 210 restaurants in California and thousands of employees but the suit charges that “very few” are over 40 and/or black.

Steve Tidrick, the attorney for the plaintiffs, said the suit alleges that In-N-Out Burger has “a pervasive policy of discrimination on the basis of race, color and age” in its hiring practices and seeks to end those practices through injunctive relief.

For more:  http://www.mercurynews.com/breaking-news/ci_21477996/oakland-lawsuit-accuses-n-out-burger-racial-and

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by | September 5, 2012 · 6:17 am

Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

 “It is rampant in the restaurant industry…it is a
culture of post-shift drinking, and in some restaurants, drinking during the
shift. It’s almost like a fringe benefit in some high-end restaurants, this
tradition of drinking after work.”

Husk’s owner, Marietta, Ga.-based Neighborhood Dining Group Inc., and its insurer agreed last month to settle the suit for $1.1 million. The company denied fault or liability.

The fiery crash and lawsuit also have put restaurants across the USA on notice that a tradition at many restaurants — in which employees share a drink after work in a spirit of camaraderie — can have devastating consequences.

The 4 a.m. crash occurred last December, when Adam Burnell, 32, an assistant manager and sommelier at Charleston’s Husk restaurant, allegedly drove his Audi into the back of a Mustang driven by Quentin Miller, 32. The crash slammed Miller’s car into a concrete wall; it erupted in flames, trapping him inside. He died at the scene. Burnell, who prosecutors said had a blood-alcohol level of 0.24%, three times the legal limit, was charged with felony driving under the influence.

Miller’s family filed a wrongful-death lawsuit, alleging that Husk allowed Burnell to drink to excess on its premises after hours and then drive drunk. It was a stumble for a restaurant that was named “Best New Restaurant in America” by Bon Appetit magazine months earlier. Husk also was ranked one of the “101 Best Places to Eat in the World” by Newsweek magazine last month.

Burnell, who sustained minor injuries and is awaiting trial, was not named as a defendant.

Neighborhood Dining Group already had a policy that prohibits employees of its four restaurants — three in Charleston and one in Atlanta — from drinking on the premises, President David Howard says.

For more:  http://www.usatoday.com/news/nation/story/2012-09-04/restaurants-drinking-lawsuit-crash-south-carolina/57586486/1

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by | September 3, 2012 · 6:18 am

Hospitality Industry Theft Risks: Wisconsin Restaurant Employee Arrested For "Cashing Two Unauthorized Businsess Checks" In His Name

“…the owner of Espana Restaurant and Bar discovered Johnson had cashed two unauthorized checks from the business in his name for $160 and $350…the checks were kept in a locked desk drawer in the basement of the business and were pre-signed to pay vendors…”

A 37-year-old Wauwatosa man is facing charges after he allegedly stole two checks from his employer and then cashed them in his name. Dana James Johnson was charged Thursday in Milwaukee County Circuit Court with one count of theft. If convicted, he faces up to nine months in prison and $10,000 in fines.

Officers then went to Community Financial, 4525 W. North Ave., where they found security video footage of Johnson coming into the bank and cashing the checks.

For more:  http://wauwatosa.patch.com/articles/tosa-man-charged-with-stealing-checks-from-a-milwaukee-restaurant

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by | September 2, 2012 · 6:38 am

Hospitality Industry Property Risks: California Hotel And Restaurant Fire Caused By Electrical Malfunction; Over $400,000 In Roof And Water Damage

“…The blaze damaged the inn’s roof and attic, and there was water damage to the upper floors…damage is estimated at between $400,000 and $500,000…”

An electrical malfunction in a bathroom might have caused a fire at the Calistoga Inn Tuesday morning, a Calistoga firefighter said. The fire was reported at 3:13 a.m. at the inn, restaurant and brewery located at 1250 Lincoln Ave.

Guests were evacuated as crews began to battle the flames.  Twelve of the hotel’s 18 rooms were occupied, mostly by couples, Tamagni said. No injuries were reported.

For more: http://sanfrancisco.cbslocal.com/2012/08/28/electrical-fire-causes-half-a-million-in-damage-to-calistoga-inn/

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