Category Archives: Risk Management

by | October 11, 2012 · 6:11 am

Hospitality Industry Legal Risks: Nevada Hotel Settles Employment Discrimination Lawsuit With Justice Department For $49,000; Must Implement New Employment Eligibility Verification Policies

“Employers may not treat authorized workers differently during the employment eligibility verification and reverification process based on their citizenship status or national origin,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

Under the settlement agreement, Tuscany will pay $49,000 in civil penalties to the United States and full back pay to a victim.  In addition to corrective action already taken, Tuscany also agrees to implement new employment eligibility verification policies and procedures that treat all employees equally regardless of citizenship status, conduct training of its human resources staff on their responsibilities to avoid discrimination in the employment eligibility verification process, and be subject to reporting and monitoring requirements.

The Justice Department today reached an agreement with Tuscany Hotel and Casino LLC in Las Vegas resolving a lawsuit alleging that the company discriminated in the employment eligibility verification and re-verification process.

The Immigration and Nationality Act (INA) requires employers to treat all authorized workers equally during the hiring, firing and employment eligibility verification process, regardless of their national origin or citizenship status.

The department’s case, filed on May 11, 2012, alleged that Tuscany treated non-citizens differently from U.S. citizens during the employment eligibility verification and reverification process.   The complaint alleged the casino required non-citizen employees to provide more or different documents or information than it required from citizen employees during the initial employment eligibility verification process.  According to the complaint, the company then used the documents or information it gathered to impose improper document requests on non-citizens during the reverification process as a condition of continued employment.
The complaint further alleged that the casino subjected non-citizen employees’ documents to a heightened review process by senior human resources representatives that was not applied to documents presented by U.S. citizens.

For more:  http://www.opposingviews.com/i/society/drug-law/justice-department-settles-lawsuit-against-las-vegas-casino-unfair-documentary

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by | October 9, 2012 · 6:32 am

Hospitality Industry Employment Risks: High Hotel Employee Turnover Rates Increase Operating Expenses While Lowering Customer Service Experience And Guest Loyalty

For more:  http://www.hospitalitynet.org/news/154000320/4058028.html

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by | October 7, 2012 · 1:14 pm

Hospitality Industry Information Security Risks: Hotel's Guest's Credit Cards Are Targets For "Identity Thiefs" From "Mulitple Charges" During Stay

“…hotels have lots of employees — and many of them have access to the credit card and other personal information of guests. No matter how well trained and supervised, more personnel correlates to greater risk. The fact that low-level employees typically have access to key guest information, and that there is, historically, a high turnover in hotel employees, exacerbates the problem…”

Hotels are obvious targets for identity and financial theft for many reasons. Hotels transact business through credit cards, and those credit cards are kept on file and can be accessed multiple times during a guest’s stay. The possibility that a credit card charge will be recorded occurs with each night’s room charge, room service, bar or restaurant bill, spa charge, and so on. Every charge is another opportunity for an identity thief to access the information using sophisticated computer hacks and other malicious software, generally without the hotel’s knowledge.

The need to respond to guest demands is another source of insecurity. The Identity Theft Resource Center noted, “The ability to connect to the Internet is an integral part of many individuals daily life. This has led to the increased demand for public WiFi.” As a result, hotels find themselves compelled to offer wireless internet, and that service is almost always unsecured. But an unsecured wireless network is “just as dangerous as leaving files of your most important personal documents on a street curb for all to see. Hackers can easily get into an unsecured wireless network and get financial information, business records or sensitive e-mails.” (PC World, “Got Wireless Security”, http://www.pcworld.com/article/125040/got_wireless_security.html). At the same time, hotels have little say in the matter. Guests demand wireless internet service.

Some security researchers have described a wave of attacks against the hospitality industry. In 2010, the cybersecurity consultant Trustwave found that in 38% of its investigations, hotels and resorts were the victims of successful cyber intrusions, despite those firms only representing 3% of its customers.  Hotels represent a disproportionate number of security breaches.

For more:  http://hotellaw.jmbm.com/2012/10/liability_for_guest_information_.html

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by | October 6, 2012 · 7:05 am

Hospitality Industry Legal Risks: North Carolina Restaurant Ordered To Pay $1.7 Million To Parents Of "Unborn Child" Killed By Man In Alcohol-Related Head-On Collision

 “…attorneys say Huffman had been drinking at Eddie’s Place, and that his blood alcohol content was 0.23, nearly three times the legal limit in North Carolina…”

A jury has awarded a Charlotte couple $1.7 million in a lawsuit against a local restaurant in connection with a head-on collision that killed the couple’s unborn son.

Attorneys for Matt and Meredith Eastridge say 25-year-old David Canter Huffman was speeding in his Volvo on Oct. 29, 2010, when the car crossed the center line and hit Matt Eastridge’s Toyota RAV4.

Police say Huffman died in the crash, as did the Eastridges’ unborn son. Meredith Eastridge was a front-seat passenger and was six months pregnant.

For more:  http://www.therepublic.com/view/story/106eccfc426d4238a06f31c1cffbbf72/NC–Collision-Lawsuit

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by | October 4, 2012 · 6:29 am

Hospitality Industry Security Risks: Hotel "Electronic Room Locks" Opened With "Hacking Device" Tool Disguised As "Dry Erase Marker" (Video)

[youtube=http://www.youtube.com/watch?v=QyN-8CeNSZg]

A trio of hackers have built a tool that appears to be an innocent dry erase marker, but when inserted into the port on the bottom of a common form of hotel room keycard lock triggers the lock’s open mechanism in a fraction of a second.

The security researchers who spend their days breaking into clients’ systems to find and fix security vulnerabilities often call themselves “penetration testers,” or “pentesters.” But one group of hotel lock hackers just gave the term “pentest” a very different meaning.

The inconspicuous lock hacking device is an adaption of one demonstrated at the Black Hat security conference in July by Cody Brocious, a hacker and software developer for Mozilla, who discovered and exploited a vulnerability in Onity locks, a cheap and popular hotel room lock that the company says are used on at least four million hotel rooms worldwide. Through the port on the bottom of the lock intended for a device that hotels can use to set master keys, Brocious found he was able to read the lock’s memory, including a decryption key stored on the locks that gave him access to their opening mechanism.

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by | October 2, 2012 · 6:17 am

Hospitality Industry Legal Risks: Small California Restaurants Face "Expensive And Time-Consuming" ADA Lawsuits, Forcing Some To Close Down

“…Texas West BBQ in Sacramento faced a lawsuit in 2007…and made the needed changes…but then, in March of this year, a second lawsuit is forcing Texas West BBQ to make more changes to be ADA-compliant…including better striping in the parking lot, wider doors, and a larger bathroom…it will cost nearly $35,000…”

An American with Disabilities Act lawsuit was the last straw for a struggling, longtime burger business. Ford’s Real Hamburgers on Sutterville Road shut down just weeks after the governor signed a new state law that would crackdown on ADA lawsuit abuse.

Several attorneys have filed an exceptional number of lawsuits based on ADA violations. Attorney Scott Johnson has filed nearly 2,200 of them in federal court. More often than not, businesses settle after paying thousands of dollars.

“It scares you because it’s so expensive and time-consuming,” said Louise Haynes.

Gov. Brown just signed a bill co-authored by Senate President pro Tempore Darrell Steinberg, D-Sacramento, that would prevent frivolous lawsuits. It would ban demand letters. It gives the defendant time to fix the ADA violations. It’ll also prevent lawyers from stacking multiple claims to increase pay-outs.

” It prevents what I like to call ‘legalized extortion,'” said Travis Hausauer who is co-chair of Californians Against Lawsuit Abuse. His Squeeze Inn Burger restaurant was sued twice by two different attorneys.

” I got sued in court the first time, then I got sued in federal court the second time around,” said Haushauer.

Many people believe the state law is a positive step. But some say it won’t stop ADA lawsuits because attorneys will continue to file lawsuits in federal court.

For more:  http://landpark.news10.net/news/news/105381-ada-lawsuit-leads-long-time-sac-burger-business-close

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by | September 30, 2012 · 7:06 am

Hospitality Industry Legal Risks: Texas Restaurant Chain Sued By EEOC For Firing "Pregnant Employees Under A Discriminatory Written Policy"

“…According to the EEOC’s lawsuit, Maryann Castillo and other female workers were laid off after the third month of their pregnancies under a written policy, set out in Bayou City Wings’ employee handbook…”

JC Wings Enterprises, LLC, doing business as Bayou City Wings, a Baytown-based restaurant chain, violated federal law when its managers laid off pregnant employees under a discriminatory policy, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today.

  Bayou City Wings owns and operates restaurants in Baytown, Houston and surrounding areas.  The company’s district manager laid off Castillo pursuant to the policy even though she had provided a doctor’s note that indicated she could work up to the 36th week of her pregnancy and that her doctor had not placed any restrictions on her ability to work.

During the EEOC’s investigation of a discrimination charge brought by Castillo, Bayou City Wings named eight female employees who were laid off from work because of their pregnancies.  According to a Bayou City Wings general store manager, for a manager to keep a pregnant employee at work any longer would “be irresponsible in respect to her child’s safety” and would jeopardize his position with the company “for not following procedures.”

Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, prohibits employers from discriminating against employees on the basis of sex or pregnancy.  The EEOC filed suit (Civil Action No. 4:12-cv-02885) in U.S. District Court for the Southern District of Texas, Houston Division, after first attempting to reach a pre-litigation settlement through its conciliation process.   The EEOC seeks an injunction, back pay with pre-judgment interest, reinstatement or front pay, compensatory damages and punitive damages, in amounts to be determined at trial.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/9-12-26d.cfm

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by | September 29, 2012 · 6:51 am

Hospitality Industry Safety Risks: Hotel Guests At Risk Of Injury As Shower Door Glass Can Shatter With The "Force Of An Explosion"

“…court records (documented)…a federal lawsuit filed earlier this year against the Four Seasons Hotel in Chicago. A woman, who stayed at the hotel in 2007, says she opened a shower door and suddenly “the force of an explosion” threw here “violently across the toilet” and caused her “serious injuries.” Pictures are filed with the lawsuit showing tiny particles of glass layered on the hotel bathroom and filling the toilet…”

Hotels need to be really vigilant about this problem…(says) a glass expert who may soon testify in three cases where guests were injured when their shower doors shattered… “The two main types of injuries are where their bodies get cut and the other ones are where they are walking out on glass and cutting their feet.”

Another couple posts video on Vimeo showing what allegedly happened to them during their Hawaiian honeymoon at the Ohana Hotel in Waikiki West. You can hear the water running from the shower, see his wife standing in the water, and feel her pain as she obviously had to find a way out through shattered glass all over the floor. The new groom, Lance Ogren, looks into his own home video camera and says, “I heard her start to open (the shower) and I heard a big crash.” Ogren tells CBS 11 news the hotel gave them an apology and a new room.

Meshulam says most shower doors have tempered glass which is heated and then cooled creating tension for durability. He demonstrated how hard it is to break slamming a hammer into a tempered glass shower door several times before it finally shatters. He says the door are considered safe because under stress they shatter into tiny pieces; however, he says there are several reasons why a shower door might explode.

One is a small crack, like the one in your windshield, that just slowly grows out like a spider web. “When it hits a certain part of the glass where all those internal tensions are residing then everything blows up.” He also says towel bars might not be installed properly. Or, doors may not slide on the tracks correctly. These can cause pressure over time. Finally, there could be a problem during the manufacturing process if a microscopic grain of nickel sulfide gets trapped inside the glass. This manufacturing defect is a “ticking time bomb.”

For more:  http://dfw.cbslocal.com/2012/09/28/cbs-11-investigates-shattering-shower-doors/

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by | September 28, 2012 · 6:16 am

Hospitality Industry Legal Risks: California Hotel Sued By Family Of Woman Killed Crossing Street To Parking Lot; "Duty To Ensure Safety Of Guests"

“…The civil complaint alleges The Cliffs Resort has a duty to ensure the safety of its customers but failed to do so…the location is dangerous because resort patrons who do not use valet service must park on the east side of Shell Beach Road…they must cross the busy street without the benefit of a crosswalk, traffic controls, warning signs, or proper lighting…the lawsuit claims.”

The family of a woman struck and killed by an SUV while crossing Shell Beach Road in Pismo Beach nearly a year ago has filed a lawsuit seeking to improve safety at the site. The lawsuit was filed April 11 against The Cliffs Resort and the city of Pismo Beach by San Luis Obispo personal injury lawyer  Ryan Harris on behalf of the family of Tricia Rittger.

The Los Osos resident was 39 when she was struck Nov. 19, 2011, in front of the hotel and subsequently died, leaving behind husband Aaron and a 4-year-old daughter.

Harris said the lawsuit seeks to force The Cliffs and the city to improve safety for customers walking from the parking lot across Shell Beach Road to the hotel and restaurant.

For more: http://www.timespressrecorder.com/articles/2012/09/28/news/news54.txt

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by | September 27, 2012 · 6:08 am

Hospitality Industry Health Risks: "Wrongful Death" Lawsuit Filed Against Illinois Hotel For Legionnaire's Disease Outbreak Tied To Fountain In Lobby

“…Health officials tied the outbreak to the main fountain in  the hotel lobby. The plaintiff …alleges the  hotel didn’t properly maintain the fountain and said the company neglected to  prevent visitors from walking near the fountain when the hotel should have known  about the bacteria…”

The family of a Florida man who died after catching  Legionnaire’s disease at a Loop hotel has filed a wrongful death suit against  Marriott International. Luis Enrique Acevedo Muro was one of three people who died  after being exposed to Legionella bacteria at the JW Marriott Chicago Hotel, at  151 W. Adams St., according to the lawsuit and public health officials.

Acevedo Muro, of Key Biscayne, Fla., contracted Legionnaire’s  disease after  staying at the hotel from Aug. 1 to Aug. 3, the suit claims. He  died Aug. 14.

The eight-count suit, filed Wednesday in Cook County Circuit  Court,  claims wrongful death and survival action against Marriott and   Chicago-based developer The Prime Group, Inc.  It seeks an unspecified  amount in  damages. Neither company could be reached for comment Wednesday evening.

Legionnaires’ disease is contracted by breathing in mist or  vapors from water contaminated with the Legionella bacteria and usually develops  two to 14 days after exposure. It frequently begins with headache, high fever  and chills, and progresses by the second or third day to include a cough, chest  pain and shortness of breath.

Source: http://www.nbcchicago.com/news/local/legionnaires-disease-outbreak-chicago-hotel-marriot-171439911.html#ixzz27g7k8GHy

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