Category Archives: Risk Management

by | June 17, 2012 · 6:59 am

Hospitality Industry Crime Risks: Thieves Steal Missouri Restaurant's Air Conditioning Unit For Third Time In Five Years; Total Losses Over $15,000

“…how thieves could come and go at ease over a span of about 90 minutes, climb the 8-foot-high jail bars protecting their air conditioning unit…essentially locking themselves inside the bars with no fear of getting caught as they dismantled the unit, stripping it of copper and other valuable metals. It was all caught by the surveillance camera…”

Air conditioner thieves struck a favorite Chinese restaurant in East St. Louis last month, for the third time in five years. The losses have topped $15,000 for the Hong Kong Chop Suey at 60thand State.

With almost no progress in the police investigation, the restaurant owners released the surveillance video to FOX 2, hoping to save their business. Instead of talking about food and customers’ orders, workers were talking about thieves again at the restaurant Monday night.

Thieves also hit the restaurant’s a/c units there in 2007 and 2010. Repair and replacement costs have soared. “First timeabout $8,000. Second time about $5,000. This time about $2,000,” Chiu explained.

For more:  http://fox2now.com/2012/06/11/ac-theft-could-cause-restaurant-to-shutdown/

Comments Off on Hospitality Industry Crime Risks: Thieves Steal Missouri Restaurant's Air Conditioning Unit For Third Time In Five Years; Total Losses Over $15,000

Filed under Crime, Insurance, Maintenance, Management And Ownership, Risk Management, Theft

Tagged as , , , ,

by | June 16, 2012 · 6:32 am

Hospitality Industry Wireless Security Risks: Cyber Criminals Setting Up "Mock Wi-Fi Hot Spots" At Hotels To Steal Wireless Device Data

“People will see ‘free Wi-Fi’ and click on it, and when they do that they open themselves up to great exposure…the best approach is to be wary and steer clear of Wi-Fi hotspots that do not seem legitimate — something (that) looks like it’s not quite right, not the proper name they might expect,” 

Gary Davis, McAfee’s director of global consumer marketing, said there was a growing trend of hackers setting up mock Wi-Fi hotspots in public places, which appear at the top of the list of available Wi-Fi connections.

Once compromised, hackers can take total control of a device, including removing all the data contained on it. Android devices are currently the devices most targeted by hackers, Davis said.

“We saw a 1,200% increase in malware targeting Android devices just in the first quarter of this year,” he said.

John said the best approach for business travelers when using public Wi-Fi is to remotely log into their employer’s virtual private network, or VPN, which ensures all data received and sent from a device is encrypted.

For more:  http://edition.cnn.com/2012/06/12/business/cyber-hackers-data-security-travel/index.html

Comments Off on Hospitality Industry Wireless Security Risks: Cyber Criminals Setting Up "Mock Wi-Fi Hot Spots" At Hotels To Steal Wireless Device Data

Filed under Crime, Guest Issues, Liability, Maintenance, Risk Management, Technology, Theft

Tagged as , , , ,

by | June 13, 2012 · 6:46 am

Hospitality Industry Property Risks: Hawaii Hotel Tree Trimmer Dies After Falling Forty Feet To Pool Deck; Fourth Tree Care Worker To Die In 18 Months

“…the tree trimmer died after falling about 40 feet during work at a Waikiki  resort…he landed on the pool  deck at the Hilton Hawaiian Village…”

Barcelona was the fourth tree trimmer to die in the state since January 2011.  Five died between November 2009 and November 2011, and three between January  2011 and July 2011…according to the state Department of  Labor and Industrial Relations.

The Hawaii Occupational Safety and Health Division will investigate the  death, which the medical examiner’s office said was an accident. Police do not  suspect foul play.

In response to the spate of deaths, the state and the Aloha Arborists  Association held a series of tree care safety workshops on Oahu, the Big Island  and Maui, Kunstman said.

In November, the state recommended penalties of $10,000 for a Maui  landscaping company after an investigation found one of the company’s tree  trimmers fell to his death from a coconut tree while using a rusty line patched  with duct tape. In September, a 71-year-old tree trimmer died after a coconut  tree fell on him in Kailua.

The Kailua company’s owner, Wesley Jay, didn’t immediately respond to a  request for comment. Stasia Barcelona said her son looked up to his boss, who  was very cautious, and dreamed of someday taking over the business.

According to the state Department of Commerce and Consumer Affairs, the  company has a valid license in good standing. The hotel extended their  condolences to the family in a statement.

Read more:  http://www.vcstar.com/news/2012/jun/12/trimmer-dies-after-fall-from-tree-at-waikiki/#ixzz1xgScV88n – vcstar.com

Comments Off on Hospitality Industry Property Risks: Hawaii Hotel Tree Trimmer Dies After Falling Forty Feet To Pool Deck; Fourth Tree Care Worker To Die In 18 Months

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

Tagged as , , ,

by | June 11, 2012 · 6:30 am

Hospitality Industry Legal Risks: Texas Hotel Still Replacing Glass Panels One-Year After Falling Glass Injured Guests In Pool; "Negligence Lawsuit" Still Pending

“…they have been traumatized by the incident and seek recovery for damages, assert negligence on the part of the hotel, and ask for reasonable compensation for their pain, disfigurement, loss of earnings, loss of earning capacity, physical impairment, medical care and expenses and mental anguish…”

Crews are currently still replacing the more than 1,000 glass panels on the hotel.

Two people who were in the swimming pool at the W Hotel on June 10 when panels of glass fell from the building, shattered and then rained down on them have  filed a lawsuit against the W and Starwood Hotels and Resorts. Susan Davis and Prashanth Magadi  filed the complaint , represented by attorney Sean Breen, in Travis District Court. The two were injured and are still removing glass from their bodies when they filed the lawsuit in late June 2011. Davis said she still doesn’t know the extent of her injuries yet but remembers clearly that day at the pool on June 10.

The plaintiffs are asking that safety measures be put in place to prevent more falling glass, along with asking that covered walkways be built at the affected parts of the building.

The lawsuit alleges that the hotel had been warned of the problem before the June 10 incident, but failed to respond. In May, a similar incident happened at a  W Hotel in Atlanta where two women fell out of the hotel when glass failed and fell out of their hotel room, according to the lawsuit.

The lawsuit was filed the day after a second incident of falling glass happened at the W,  when three panels fell to the street below on June 27. No one was injured, though cars were damaged.

For more:  http://www.kxan.com/dpp/news/local/austin/one-year-later-few-answers-at-w-hotel

Comments Off on Hospitality Industry Legal Risks: Texas Hotel Still Replacing Glass Panels One-Year After Falling Glass Injured Guests In Pool; "Negligence Lawsuit" Still Pending

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

Tagged as , , , ,

by | June 9, 2012 · 1:13 am

Hospitality Industry Health Risks: Texas Hotel Temporarily Closed After Legionnaires' Disease Diagnosis

The SuperMedia Hotel and Conference Center, a hotel near the Dallas airport, closed temporarily this week after a guest was diagnosed with Legionnaires’ Disease. It is not yet known if the guest contracted the disease at the hotel or elsewhere, but the hotel closed temporarily while tests are being conducted.

“A guest at the hotel attached to SuperMedia’s offices was treated for Legionnaires’ disease and released from a nearby hospital. After the one case was initially reported to us, we took the precautionary step of asking our employees to work from alternate locations while the appropriate tests were being conducted. No other cases have been reported and we don’t know that this case originated from the hotel,” Andrew Shane, a  SuperMedia spokesperson, told Food Poisoning Bulletin.

Legionnaires’ Disease is a lung infection caused by Legionella bacteria which got its name when a number of people attending a 1976 American Legion convention in Philadelphia came down with the disease, according to the Centers for Disease Control and Prevention (CDC).

For more:  http://foodpoisoningbulletin.com/2012/legionnaires-case-shuts-down-dallas-hotel/

Comments Off on Hospitality Industry Health Risks: Texas Hotel Temporarily Closed After Legionnaires' Disease Diagnosis

Filed under Guest Issues, Health, Insurance, Maintenance, Management And Ownership, Risk Management

Tagged as , , , , ,

by | June 7, 2012 · 6:25 am

Hospitality Industry Property Risks: Wisconsin Restaurant Kitchen Fire Spreads To Second Floor Storage Area; Significant Water And Smoke Damage

“…some employees at closing time discovered a fire in the kitchen and attempted to put it out with extinguishers…the fire extended into the second floor that was mostly used for storage and contained a lot of combustibles…there was water damage to the basement and smoke and fire damage throughout the two-story structure….”

Firefighters arrived at Carvetti’s, 642 W. Main St. at 1 a.m., “they encountered heavy smoke and a heavy fire load on the second floor. The fire was pretty heavily involved,” said Capt. Mark Moller-Gunderson. The cause and origin of the fire is under investigation.

Lake Geneva Police Department Detective Ed Gritzner said the task force continues to investigate the fire, but “we don’t think any criminal activity is involved. We just need to talk to a few more employees to see what they have to say since the kitchen appears to be where the fire originated,” he said.

In fighting the blaze, fire crews made an aggressive interior attack while the ladder company opened the roof. Other firefighters chased down fire pockets before fire crews conducted overhaul and salvage work.

“They had the bulk of the fire knocked down in 15 to 20 minutes and prevented more serious damage from the fire that had a pretty good start,” Moller-Gunderson said.

For more:  http://gazettextra.com/news/2012/jun/06/fire-damages-lake-geneva-eatery/

Comments Off on Hospitality Industry Property Risks: Wisconsin Restaurant Kitchen Fire Spreads To Second Floor Storage Area; Significant Water And Smoke Damage

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

Tagged as , , , , ,

by | June 6, 2012 · 7:47 am

Hospitality Industry Employment Risks: California Hotel Settles "Wage And Hour Lawsuit" For $2.5 Million; Over 400% Increase In Collective Actions Filed Nationally Since 2000

The case included allegations claiming that the hotel failed to pay employees for the time spent preparing for work and putting on and taking off uniforms that were required to be left at the hotel. Workers also alleged that they were required to fill out time sheets saying they took breaks whether they did or not.

The Hilton Hotel near Los Angeles International Airport has agreed to pay its workers $2.5 million to settle a  lawsuit alleging that the hotel withheld wages, did not pay overtime and failed to provide meal and rest breaks to about 1,200 workers, union officials said Tuesday.

The suit, filed in 2008, covers all hourly employees who worked at the hotel at 5711 W. Century Blvd. from 2004 to 2011. With more than 1,230 guest rooms, the Hilton Los Angeles Airport is one of the largest hotels in Los Angeles.

Nationally, more than 7,000 collective actions were filed in federal court in 2011 alleging wage and hour violations under the Fair Labor Standards Act, an approximately 400% increase since 2000.

For more:  http://latimesblogs.latimes.com/lanow/2012/06/hotel-settlement.html

Comments Off on Hospitality Industry Employment Risks: California Hotel Settles "Wage And Hour Lawsuit" For $2.5 Million; Over 400% Increase In Collective Actions Filed Nationally Since 2000

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

Tagged as , , ,

by | June 5, 2012 · 6:26 am

Hospitality Industry Employment Risks: U.S. Justice Dept. Files "Employment Discrimination Lawsuit" Against Nevada Hotel; "Pattern Of Unlawful Eligibility Verification"

“…The suit alleges the property  engaged in a pattern or practice of discrimination in the employment eligibility verification and reverification 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 suit seeks an unspecified fine and “full remedial relief to work-authorized non-U.S. citizen employees for the losses they have suffered, including back pay and reinstatement.”

The U.S. Justice Department is suing the Tuscany Suites & Casino in Las Vegas over allegations the property discriminated against non-U.S. citizen job applicants and employees over a five-year period. The Justice Department’s Civil Rights Division in Washington, D.C., last week announced it filed a lawsuit against the hotel-casino in the Office of the Chief Administrative Hearing Officer of the agency and served  the company on May 29. The complaint alleges:

  • Tuscany treated non-citizens differently from U.S. citizens during the employment eligibility verification and reverification process by requesting non-citizen employees provide more or different documents or information than was required.
  • Tuscany subjected lawful permanent residents to unnecessary reverification procedures based on their citizenship status. These are workers with Permanent Resident Cards (green cards).

The suit says the Tuscany had been hit with a discrimination complaint in early 2011 by an unidentified “charging party,” and that in October the Justice Department’s Office of Special Counsel notified the Tuscany “it was expanding the investigation to include a possible pattern or practice of document abuse against non-U.S. citizens.”

For more:  http://www.vegasinc.com/news/2012/jun/04/justice-department-alleges-las-vegas-casino-discri/

Comments Off on Hospitality Industry Employment Risks: U.S. Justice Dept. Files "Employment Discrimination Lawsuit" Against Nevada Hotel; "Pattern Of Unlawful Eligibility Verification"

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

Tagged as , , , , ,

by | June 4, 2012 · 6:19 am

Hospitality Industry Legal Risks: Missouri-Based Restaurant Chain Settles $10 Million "Drunk Driving Lawsuit" Brought By Family Of Brain-Damaged Boy

The parents of Abdallah Khader, now 6, sought $10 million from Kansas City, Mo.-based Applebee’s in a civil lawsuit…Abdallah Khader suffered damage to 80% of his brain in the crash, and his family incurred massive medical expenses. Their lawsuit asked for $10 million to cover round-the-clock medical care along with lost future earnings, mental anguish, and pain and suffering — all typical damages in a personal-injury case.

The Khaders’ lawsuit accused workers at a Mansfield, Texas, Applebee’s of serving a man 23 drinks in less than two hours, leading him to drive drunk and crash into the Khaders’ car. A law firm’s investigation was key to the Applebee’s settlement, the family’s lawyer said.

The firm’s investigation dug up the alleged drunken driver’s Applebee’s receipts, which showed he paid for nearly two dozen drinks in a two-hour span. Police determined the driver’s blood-alcohol level was more than three times Texas’ legal limit, which is 0.08%.

The Khaders sued Applebee’s and the drunken driver, a repeat DWI offender who also faces criminal charges related to the crash. The driver’s criminal trial is pending, KTVT reports.

For more:  http://www.reuters.com/article/2012/05/31/tablogsfindlawcom2012-injured-idUS369201020620120531

Comments Off on Hospitality Industry Legal Risks: Missouri-Based Restaurant Chain Settles $10 Million "Drunk Driving Lawsuit" Brought By Family Of Brain-Damaged Boy

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

Tagged as , , , , ,

by | June 1, 2012 · 7:47 am

Hospitality Industry Payment Fraud Risks: Florida Hotels Victims Of $15,000 Scam By Guests; Legitimate Credit Cards "Switched" To Prepaid Debit Cards

“…(three men) racked up roughly $15,000 in charges at several Disney hotels earlier this year and then left without paying before hotel staff ever realized what happened…Each man checked into a hotel with a legitimate credit card but then switched the room charges to prepaid debit cards that each had less than $10 in value…”

Falk, 36, told deputies they pulled off the scam by taking advantage of a loophole in the way Disney charges resort guests that he discovered during a legitimate vacation four years ago. Then they charged thousands in theme-park purchases to their rooms. Since the hotel limited charges to between $1,000 and $1,500 per room, the fraudulent purchases went undetected since they stayed below those amounts, they told deputies.

Nero, 39, told deputies they visited resort hotels seven times and reserved a total of 13 rooms from February to April. The three could still be living the high life had it not been for a vigilant cigar shop employee, a report says. The employee contacted authorities after Falk allegedly came into the shop several times to buy hundreds of dollars worth of pricey cigarettes.

The employee told police that Falk was spending more money than most of the other customers but what really made him suspicious was that Falk never seemed to care what brand of cigarettes he bought. According to the shop owner, most smokers are loyal to their brands.

For more:  http://articles.orlandosentinel.com/2012-05-31/news/os-disney-hotel-scam-20120531_1_hotels-shop-owner-room-charges

Comments Off on Hospitality Industry Payment Fraud Risks: Florida Hotels Victims Of $15,000 Scam By Guests; Legitimate Credit Cards "Switched" To Prepaid Debit Cards

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

Tagged as , , , , , ,