Category Archives: Risk Management

Hospitality Industry Employment Risks: Indiana Restaurants Fined For Child Labor Law Violations Involving Break Regulations

If a minor age 14-17 works six or more hours in a shift, an employer is required to give the minor one or two breaks totaling at least 30 minutes. Hour violations occur when a minor works past the legally defined deadline for the minor’s age.

In most cases, minors may not work during school hours, from 7:30 a.m. until 3:30 p.m., on school days. While 16- and 17-year-olds may work during school hours with written permission from the school, there is no such exemption for 14- and 15-year-olds.

Five East Central Indiana restaurants have been fined within the past year for repeat violations of child labor laws.

The Ponderosa Steakhouse in Portland received the biggest penalty, $2,200, after its third violation in a year of break regulations involving minors.The restaurant also was fined $400 for hour violations involving two minors.

Modern child labor laws serve a dual purpose based on their roots in compulsory education, according to the Indiana Department of Labor. The first is to make certain that young people pursue education, and the second is to protect young workers from suffering injury, illness or death in the workplace.

One East Central Indiana employer received a warning for employing a minor in a hazardous/prohibited occupation following a workplace fatality.

The labor department gives employers an opportunity to protest violations within 30 days of being notified of a fine. Several restaurants received warnings for employing minors during school hours but were not fined because it was a first offense.

For more:  http://www.thestarpress.com/article/20120702/NEWS01/307020015

Comments Off on Hospitality Industry Employment Risks: Indiana Restaurants Fined For Child Labor Law Violations Involving Break Regulations

Filed under Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training

Hospitality Industry Theft Risks: Florida Hotels And Guests Defrauded By Homeless Man; Watched Guests Leave Room And Claimed He Was That Person

“…He would apparently watch a guest leave then go into the room and claim he’s that person.  Once in the room, police told WFTV Price would call the front desk and say he wanted to extend the stay, sometimes by 10 days…”

“…At the Portofino Bay Hotel at Universal, Price allegedly racked up nearly $9,000 in charges on an Ohio man’s credit card…”

A homeless man spent Friday night in the Orange County Jail.  He was busted after police said he posed as a guest at lavish hotels and went on spending sprees that his victims paid for. David Price has been homeless for the past two years.  On some nights he found shelter at the most lavish hotels in Orange County including The Ritz Carlton, Hard Rock Hotel and Loews Portofino Bay.  He stayed at those hotels on other people’s dime.

A few days ago, police arrested Price after he finagled his way into a room at the Hard Rock Hotel that was previously occupied by a hotel worker.  Security officers knew the employee had already left so they called the police.  Officers apparently found items from other hotels in the room, including The Peabody on International Drive and the Four Seasons in Miami.

For more:  http://www.wftv.com/news/news/local/investigators-homeless-man-arrested-stays-hotels-o/nPjTK/

Comments Off on Hospitality Industry Theft Risks: Florida Hotels And Guests Defrauded By Homeless Man; Watched Guests Leave Room And Claimed He Was That Person

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

Hospitality Industry Employee Risks: Illinois Restaurant Sued For $50,000 By Guest Claiming "Battery And Negligence" After Employee Assault

“…(restaurant employee) came from behind  the pick-up counter to attack Shears, “violently pushing her the glass front  door causing the glass door to shatter” and severely injure Shears’ leg,  according to the suit…Shears is suing (employee) and the restaurant for battery and negligent and  intentional infliction of emotional distress…”

A woman is suing a Chicago restaurant and its employee for  $50,000 after she claims she was violently thrown through a glass door for  requesting extra packets of sauce.

A lawsuit filed this week in Cook County Court states the incident happened  after Chicago resident Tiawanda Shears placed a to-go order at the New China Wok  Limited, at 752 W. Garfield Blvd., on May 14. 

After receiving her food, Shears noticed the order contained  only one sauce packet and “politely” asked employee Hui Tian Wu for more sauce,  according to the lawsuit.

Comments Off on Hospitality Industry Employee Risks: Illinois Restaurant Sued For $50,000 By Guest Claiming "Battery And Negligence" After Employee Assault

Filed under Guest Issues, Injuries, Insurance, Labor Issues, Management And Ownership, Risk Management

Hospitality Industry Health Risks: Oregon Restaurants Fight New Rule Requiring Cooks To Wear Gloves Before Touching Food; Hand-Washing Practices Are Central Concern

“…the Oregon Health Authority’s Foodborne Illness Prevention department said the measure was created to prevent the spread of norovirus, the most common cause of food poisoning. It’s often spread through improper hand washing by employees after they use the bathroom… a 2003 health authority survey in which restaurant inspectors found at least one hand-washing violation at nearly two-thirds of Oregon eateries…”

Oregon restaurant owners and chefs recently earned a small victory, delaying by several months a new state rule that could make dining out more expensive, create waste and, despite its good intentions, do little to protect public health.

The rule, initially set to take effect Sunday, would require cooks to wear gloves or otherwise avoid touching food with their bare hands. But restaurant owners argued the requirement won’t prove safer than the state’s current rigorous hand-washing practices — and the science seems to back them up.

At least a half-dozen recent studies have concluded the same: Counterintuitively, wearing gloves does little to prevent the spread of bacteria compared with effective hand washing. Wearing gloves has been found to reduce the number of times people wash their hands, while warm, moist conditions create a hothouse for bacteria to grow. A 2005 report from the University of Oklahoma Health Sciences Center that analyzed grilled tortillas found more staph, coliform and other harmful bacteria on the samples prepared by workers wearing gloves.

“Gloves lead to a bulletproof-vest feeling,” said Bryan Steelman, owner of the Mexican eatery Por Que No? and among the restaurateurs leading the charge against the new rule. “Cooks think, ‘I have a glove on. I don’t need to wash my hands.'”

For more:  http://www.oregonlive.com/dining/index.ssf/2012/06/oregon_restaurateurs_fight_new.html

Comments Off on Hospitality Industry Health Risks: Oregon Restaurants Fight New Rule Requiring Cooks To Wear Gloves Before Touching Food; Hand-Washing Practices Are Central Concern

Filed under Food Illnesses, Guest Issues, Health, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Information Risks: Federal Trade Commission (FTC) Sues Hotel Operator Over Guest Account Data Theft That Results In Over $10 Million Of Credit Card Fraud

“… fraudulent charges on Wyndham’s consumer accounts totaled more than $10.6 million following three data breaches in less than two years. The breaches occurred in April 2008, March 2009 and in late 2009…”

The Federal Trade Commission said repeated failures to secure consumer data led to hundreds of thousands of consumers’ payment card information being exported to an Internet domain address registered in Russia.

Wyndham, which operates several hotel brands, including the value-oriented Days Inn and Super 8, is one of a large number of organizations that acknowledged in the past three years that they had been hacked by people seeking either financial gain or intellectual property.

Other victims have included entertainment giant Sony, the International Monetary Fund, Google, Lockheed Martin and Citigroup.

For more: http://www.reuters.com/article/2012/06/27/uk-ftc-wyndham-idUSLNE85Q01Q20120627

Comments Off on Hospitality Industry Information Risks: Federal Trade Commission (FTC) Sues Hotel Operator Over Guest Account Data Theft That Results In Over $10 Million Of Credit Card Fraud

Filed under Crime, Guest Issues, Insurance, Liability, Management And Ownership, Privacy, Risk Management, Theft

Hospitality Industry Information Security: Hotel And Restaurant Guests Face Increased Risks Of "Credit Card Cloning"; Stolen Data Rewritten Onto New Cards And Used Instantly

 “…an unscrupulous restaurant waiter with a pocket skimmer might be able to steal information from hundreds of customers a week, selling that information to those with the means to encode fake credit cards. Battery-powered skimmers can be carried in a pocket…copying information as customers swipe cards to pay for gas or withdraw cash…”

The (stolen) information then can be emailed or downloaded over the Internet and rewritten onto any card with a magnetic strip, such as gift cards or hotel keys. While the victim’s credit card is still in his or her possession, someone could be using a perfect replica hundreds of miles away.

The process, called “cloning,” accounts for much of the growth in credit card fraud during the past few years, officials said. According to a Javelin Strategy and Research report, credit card fraud has increased 87 percent since 2010, culminating in aggregate losses of $6 billion nationwide.

Credit card cloning is easy and lucrative, accounting for its popularity, said Sileo, who founded the Web site Thinklikeaspy.com.

People whose cards are skimmed might not know for weeks or months that their information has been stolen. Once someone realizes it, the account usually is closed quickly. Savvy crooks know to rack up major bills just as fast.

Read more here: http://www.kentucky.com/2012/06/24/2236535/financial-crimes-credit-card-cloning.html#storylink=cpy

Comments Off on Hospitality Industry Information Security: Hotel And Restaurant Guests Face Increased Risks Of "Credit Card Cloning"; Stolen Data Rewritten Onto New Cards And Used Instantly

Filed under Crime, Guest Issues, Liability, Management And Ownership, Privacy, Risk Management, Theft

Hospitality Industry Employment Risks: Missouri Restaurant Settles "Sexual Harassment" Lawsuit With EEOC; $23,000 Payment And Employee Training Part Of Settlement

The victim will receive the payment and the training will be for all management and non-managemnt employees at its Galleria location.  Villa Galleria also agreed to report internal complaints of sex harassment to the EEOC for the decree’s 18-month term.

A restaurant in the Galleria will pay $23,000 and provide training against sexual harassment to all employees as the result of a sexual harasssment lawsuit settlement, according to the U.S. Equal Employment Opportunity Commission.

The EEOC filed a suit last September that alleged Villa Galleria allowed an employee to be subjected to sexual harassment by an assistant supervisor.  The employee alleged the supervisor tried to put his hands up her skirt and kiss her.

For more:  http://www.ksdk.com/news/article/325114/3/Galleria-restaurant-settles-sexual-harassment-lawsuit

Comments Off on Hospitality Industry Employment Risks: Missouri Restaurant Settles "Sexual Harassment" Lawsuit With EEOC; $23,000 Payment And Employee Training Part Of Settlement

Filed under Claims, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Nevada Hotel Owner Files "Trademark Infringement" Lawsuit Against Website Operator; Judge Issues Temporary Restraining Order

The suit says Marchex has been using a domain name called Aceplay.com, purporting to offer information about the Stratosphere and three other American Casino properties; the two Arizona Charlie’s in Las Vegas and the Aquarius in Laughlin…The suit also claims the website at issue infringed on American Casino’s “ace PLAY” loyalty club trademark.

“…U.S. District Court Judge Gloria Navarro issued a temporary restraining order requiring a domain name registrar to immediately remove or disable the aceplay.com domain name, place it on “hold and lock” and transfer it to the control of the court…”

According to the LasvVegasSun.com, the owner of the Stratosphere hotel-casino in Las Vegas has filed  suit against Marchex (MCHX) for alleged trademark infringement over the domain name AcePlay.com. American Casino claims in its suit that Marchex Sales Inc. has been involved in trademark infringement and ‘’cybersquatting,’’ which involves the registration of a website domain name that is similar to another party’s trademarked-name. Wednesday’s lawsuit says the site also includes links to online gaming sites and that Marchex is believed to generate “click-through” revenue from the online casinos.

American Casino “owns the exclusive right to use its ace PLAY trademark in connection with gaming services”

For more:  http://www.thedomains.com/2012/06/22/marchex-gets-sued-by-the-stratosphere-hotel-casino-in-las-vegas-over-the-domain-aceplay-com/

Comments Off on Hospitality Industry Legal Risks: Nevada Hotel Owner Files "Trademark Infringement" Lawsuit Against Website Operator; Judge Issues Temporary Restraining Order

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

Hospitality Industry Safety Risks: Virginia Hotel Sued For $250,000 By Guest Who Fell Down Stairwell During Power Outage; No Emergency Lights Above Door To Stairwell

“…(the plaintiff) unknowingly stepped into a stairwell and fell 14 steps, according to the suit. It states there were no emergency lights above the door to the stairwell or on the stairwell itself. Christians claims he received permanent injuries, and continues to have physical pain, mental anguish and lost wages…”

A Loudoun County man is suing The Homestead in Hot Springs after falling down a flight of stairs during a power outage at the luxury hotel and spa. Allan Christian, of 20934 Winola Terrace, Ashburn, filed the $250,000 lawsuit Monday in U.S. District Court, according to online court records.

He was in one of the hotels’ restaurants at about 9 p.m. June 19, 2010 when the lights went out, leaving it “pitch black,” according to the complaint. Resort staff told Christian and other guests the lights would be on again soon, and served food to them, the complaint states. However, candles and flashlights weren’t handed out or placed in areas where people may need to walk, it states.

About 40 minutes after the power went out, Christian got up to move in the direction of the bathroom, and used “the furniture and staff to guide his movement,” the lawsuit states.

For more:  http://www.nvdaily.com/news/2012/06/northern-virginia-man-sues-luxury-resort.php

2 Comments

Filed under Claims, Injuries, Insurance, Liability, Maintenance, Management And Ownership, Risk Management

Hospitality Industry Property Risks: Ohio Restaurant Kitchen Fire Causes $60,000 In Damage; Source Is Cooking Material Buildup In Vent System

“…The cause of the fire, which was contained in about 20 minutes, was blamed on a buildup of cooking material inside the ducts at Boi Na Braza’s cooking range vent system…”

A minor fire that broke out in the ductwork of a restaurant in the Carew Tower Sunday night caused $60,000 in damage, Cincinnati firefighters announced early today. Firefighters responded to the eatery for a similar incident in October.

This time, the fire was contained to the restaurant’s ductwork on the sixth floor of the Carew Tower. No one was injured.

Boi Na Braza and a neighboring restaurant, Morton’s The Steakhouse, were evacuated and closed early on Father’s Day, typically a busy evening for most eateries. The Hilton Cincinnati Netherland Plaza also was partially evacuated while fire crews investigated.

For more:  http://communitypress.cincinnati.com/article/AB/20120618/NEWS/306180012/Carew-Tower-fire-damage-60-000?odyssey=nav%7Chead

Comments Off on Hospitality Industry Property Risks: Ohio Restaurant Kitchen Fire Causes $60,000 In Damage; Source Is Cooking Material Buildup In Vent System

Filed under Fire, Insurance, Maintenance, Management And Ownership, Risk Management, Training