Category Archives: Risk Management

by | December 28, 2011 · 6:26 am

Hospitality Industry Liability Risks: Hawaii Hotel Is Found "Liable" In "Slip-And-Fall Accident" As State Supreme Court Rules "Known Or Obvious Danger" Defense Not Viable

“…Michele R. Steigman sought to recover damages after suffering a slip-and-fall accident while she was a guest of Outrigger Enterprises’ Ohana Surf Hotel….The case went to trial, and a jury found that Outrigger was not negligent…”

“… in Hawaii, the known or obvious danger defense is no longer viable as a complete bar to an injured plaintiff’s claim in the context of premises liability.”

The Hawaii Supreme Court has ruled the “known or obvious danger” defense is no longer viable under state law as a complete bar to an injured plaintiff’s premises liability claim. Steigman’s appeal to the Intermediate Court of Appeals resulted in an affirmation of the trial court’s final judgment.

Steigman’s attorneys argued that the ruling goes against a comparative negligence law passed by Hawaii’s legislature in 1969 and modified several times.

The statue states: “Contributory negligence shall not bar recovery in any action by any person or the person’s legal representative to recover damages for negligence resulting in death or in injury to person or property, if such negligence was not greater than the negligence of the person or in the case of more than one person, the aggregate negligence of such persons against whom recovery is sought, but any damages allowed shall be diminished in proportion to the amount of negligence attributable to the person for whose injury, damage or death recovery is made.”

Therefore the court ruled the traditional “known and obvious danger defense” conflicts with that statute.

“Steigman contends that the traditional known or obvious danger defense conflicts with the Legislature’s intent behind the comparative negligence statute. We agree,” the court stated in its ruling.

For more:  http://www.insurancejournal.com/news/west/2011/12/27/228806.htm

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by | December 27, 2011 · 6:56 pm

Hospitality Industry Legal Risks: New York Hotel Found Guilty Of Fostering A "Hostile Environment" For A Black Employee In Racial Discrimination Lawsuit

“…He was the only black employee in that department, the suit said, and several other mechanics and supervisors frequently used a racial epithet when he was around, apparently in an effort to cause him discomfort…The suit contended the hotel’s management at favored white and Hispanic workers over African-Americans…”

On Friday a jury, after issuing a verdict in Mr. MacMillan’s favor, awarded him $125,000 in compensatory damages and $1 million in punitive damages.

Freddrick MacMillan, who has worked at the hotel in various capacities since 1990, sued in Federal District Court in Manhattan in 2009, saying he had been subjected to a hostile environment.

 Mr. MacMillan, who is African-American, said several co-workers habitually referred to him as “boy” and used a racial epithet, and one of them used a noose to hang a doll with a black face from a bulletin board in a supervisor’s office.

For more:  http://cityroom.blogs.nytimes.com/2011/12/16/millennium-hotel-loses-racial-harassment-suit/

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by | December 26, 2011 · 8:33 am

Hospitality Industry Employee Risks: "Introduction To California's Workers' Compensation System" (Video)

[youtube=http://www.youtube.com/watch?v=2udxkhH24Cc]

Learning the rights of an injured worker under California’s workers’ compensation system. This video follows several workers’ compensation case scenarios and provides basic information and resources for obtaining further assistance and/or information.

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by | December 25, 2011 · 9:22 am

Hospitality Industry Alcohol Risks: Hotels And Restaurants Hosting "Office Parties And Charity Events" Need To Insure Against "Liquor Liability"

“…office parties and charity events…can provide opportunities for professionals to mingle casually with their co-workers and clients and can help boost employee morale…(but) they can also prove to be a liability for businesses that serve alcohol…”

“…when business owners host a holiday party and serve alcohol as part of the festivities, liquor liability would most likely be covered by their commercial general liability (CGL) policy…”

 “…In addition to a CGL policy, businesses should also consider purchasing an Employment Practices Liability Insurance (EPLI) policy. An EPLI policy will protect a business from discrimination, sexual harassment, emotional distress, and other workplace-related issues…”

  • Forty-four states plus the District of Columbia have enacted liquor liability laws
  • These laws make it possible for a plaintiff to hold those who serve alcohol to an intoxicated or underage person responsible for any damage or injury caused by these same individuals after they leave the party
  • Most of these laws also offer an injured person, such as the victim of a drunk driver, a method to sue the person who served the alcohol
  • There are circumstances under these same state laws where criminal charges may also apply
  • Liquor liability laws were intended originally to apply to taverns, bars, and other establishments selling and serving alcohol

However, the liability laws have expanded over time to include “social hosts” (such as those holding a holiday party in their home or business) in some states giving them some exposure to the risk of liability for serving alcohol.

“If you are throwing an office party where alcohol is served, you have a responsibility to make sure that your employees are capable of driving safely.”

For more:  http://insurancenewsnet.com/article.aspx?id=319206

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by | December 23, 2011 · 6:38 am

Hospitality Industry Employment Risks: California Hotels Must Have Comprehensive Corporate Policies To "Manage" Independent Contractors To Avoid "Steep Penalties" For "Willfully Misclassifying Employees"

On October 9, 2011, Governor Jerry Brown signed California Senate Bill 459 (“SB 459”), which adds sections 226.8 and 2753 to the California Labor Code. SB 459, effective January 1, 2012, imposes steep penalties on employers who willfully misclassify employees.

In light of federal initiatives and California’s enactment of SB 459, hospitality employers should consider taking various steps to evaluate their existing independent contractor relationships:

  • Develop and publish a corporate policy on the engagement of independent contractors and the management of those relationships. As part of this policy, require that approval be obtained from a knowledgeable employee before any independent contractor relationship is established.
  • Train employees who manage independent contractor agreements as to how to work with independent contractor relationships.
  • Ensure that the company has a well-written independent contractor agreement for each contractor, that it is accurate, complete, and individually negotiated.
  • Audit the company’s independent contractor relationships, including a review of any past decisions or determinations concerning independent contractor status.
  • Obtain a written legal opinion from counsel regarding the appropriateness of the classification of workers as independent contractors, based on counsel’s understanding of the specific factual situations at issue.

For more:  http://www.seyfarth.com/publications/Five-Key-Labor-And-Employment-Issues-Hospitality-Employers-Need-To-Be-Aware-Of

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by | December 22, 2011 · 6:45 am

Hospitality Industry Health Risks: "Bed Bugs" Have Become Increasingly "Resistant To Chemicals" Used To Treat Hotel Infestations

These mostly nocturnal feeders are difficult to control, not only because they are adept at avoiding detection by crawling into creases of soft furnishing but also because they have developed a resistance to many of the chemicals that have been used to kill them.

Exposure to treated bed nets and linens meant that populations of bed-bugs had become resistant to the chemicals used to kill them, researchers said. The findings could help convince pest controllers to find alternative remedies to deal with the problem.

Since almost vanishing from homes in industrialised countries in the 1950s, populations of the common bed-bug have become re-established in these regions over the past decade or so.

Findings presented at the gathering in Philadelphia showed that 90% of 66 populations sampled from 21 US states were resistant to a group of insecticides, known as pyrethroids, commonly used to kill unwanted bugs and flies.

One of the co-authors – evolutionary biologist Warren Booth, from North Caroline State University in Raleigh – explained that the genetic evidence he and his colleagues had collected showed that the bed-bugs infecting households in the US and Canada in the last decade were not domestic bed bugs, but imports.

For more:  http://ehotelier.com/hospitality-news/item.php?id=22337_0_11_0_C

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by | December 21, 2011 · 7:17 am

Hospitality Industry Food Safety: "Top Restaurant In America" Fails Inspection By Chicago's "Food Protection Division"; Results Posted On New "Online Reporting System"

“…the most common infraction is improper food temperatures…what’s important is how quickly they are corrected…”

Beginning this November the City of Chicago made it easy for residents to check in on the health and safety record of their favorite restaurants with a robust and detailed web site. At the end of November a surprising entry showed up on the city’s newly launched site: the Michelin-starred Alinea restaurant failed a November 30 inspection.(Full disclosure, their four violations were immediately corrected.)

CLICK ON "CHICAGO" TO VIEW INSPECTIONS WEBSITE

Alinea is often referred to as the best restaurant in America, and its chef, Grant Achatz, draws rock star acclaim for his culinary inventiveness.

But it’s not immune to heatlh department inspections. According to the report on Cityofchicago.org, Alinea was less than stellar on its food safety to close the month of November. No one from Alinea was available for comment by press time.

  • Inspectors observed black mold growing on interior surfaces of the ice machine.
  • Inspectors observed employees failing to properly wash hands.
  • Inspectors observed hazardous food storage of purple cabbage and potato soup.

 All of the items in the November 30 report were corrected immediately, according to Public Health Commissioner Bechara Choucair.

That’s the benefit of the new city website, however. In the past, restaurants who failed inspection were listed on a pass/fail basis. The new web site allows users to dive into information and find out exactly what violations face the restaurant.

Source: http://www.nbcchicago.com/news/health/City-of-Chicago-Health-Departments-Online-List-Exposes-Alinea-135875908.html#ixzz1hBJvbBFy

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by | December 20, 2011 · 7:01 am

Hospitality Industry Property Risks: Thirty-Five Niagara Falls Motel Rooms Extensively Damaged By "Partying High School Students"; Difficulties In Collecting From Parents And School

“…The room was a prime example of the swath of destruction cut through the motel. Holes had been punched in the wall, furniture broken and bathroom ceiling tiles had been ripped out in the bathroom…”

“…Initial estimates the owners have received peg the amount of damage to between $50,000 and $100,000…”

“…(the owner) simply hopes that parents of the students will step up and take responsibility…That hasn’t happened so far…”

Thirty-five rooms at the Avenue Inn on Lundy’s Lane were rented to high school students from Welland’s Notre Dame College School the night of the school’s Christmas semiformal, which was held up the street at the Americana Resort and Conference Centre. Overnight on Friday, Dec. 9, 22 of those rooms were damaged extensively.

“I don’t want to see this happen again,” David Linqi Liu, general manager and co-owner of the Avenue Inn motel said as he continued to sift through the wreckage of what was once Room 135 at the motel. As he walks around the room, the crunching of broken glass beneath his feet can be heard.
“We’ve had a lot of parties here, but we’ve never had this much damage,” said Harry Liu, David’s son who helps his dad and mother, Ling Cao run the Avenue as he flipped through an album of photos documenting the destruction. “A toilet was smashed, furniture and beds were overturned, a door was kicked in, a door was broken. Even an oven door was ripped off and its glass broken.”
According to Robert Forget, the on-duty manager the night of the incident, police were called by a motel guest not associated with the party. “They did show up for a little bit but they told us it was our responsibility,” Forget said. “They said it was a civil matter, not criminal.”

For more:  http://www.niagarathisweek.com/iphone/news/article/1262771–students-wreak-havoc-in-falls

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by | December 19, 2011 · 6:14 am

Hospitality Industry Employee Risks: Tennessee Hotels Fined By Department Of Labor For "Fair Labor Standards Act" Minimum Wage Violations

“…Violations included charging excessive room and board to employees who also lived at a property or paying housekeepers by the room cleaned, resulting in a person’s pay falling below the $7.25 minimumwage; paying “straight time” for all hours worked, including overtime; and failing to pay for all hours worked by temporary employees…”

The U.S. Department of Labor said Wednesday that 35 franchised hotels and motels, including 11 in Middle Tennessee, violated minimum wage, overtime and other labor laws during the fiscal year ended Sept. 30. The agency said it fined those businesses a cumulative $14,552 and recovered more than $173,000 in wages owed to 283 employees.

Some hotel and motel operators also misclassified employees as independent contractors, denying them legal protections under federal labor laws, the agency said.

The citations and fines are part of a multiyear enforcement initiative focusing on Tennessee’s hotel and motel industry, in which regulators have “found widespread noncompliance with the minimum wage, overtime and record-keeping provisions of the Fair Labor Standards Act,” the agency said in a news release.

For more:  http://www.tennessean.com/article/20111215/BUSINESS01/312150046/U-S-Labor-fines-11-Middle-TN-hotels-wage-violations?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

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by | December 18, 2011 · 6:55 am

Hospitality Industry Information Security: Study Finds Hotels Are "Prime Targets" For Financial Data Theft; "Infiltration Of Smartphones Through Bluetooth Technology"

“…Hotels also are prime targets for people looking to steal financial data. In a study of 200 data-breach cases, Trustwave’s SpiderLabs, the online security company’s research arm, found 38 percent occurred at hotels or resorts…”

Two key challenges for travelers involve the use of unsecured wireless networks at hotels, airports and other public venues and the infiltration of smartphones through Bluetooth technology.

Identity theft can be a rude awakening for many business travelers. Last year, identity theft made up 19 percent of the 1.3 million complaints stored in the Consumer Sentinel Network, a secure online database available to law-enforcement agencies.

Experts say business travelers are especially vulnerable because they increasingly rely on electronic devices that easily can be lost or hacked. Credant Technologies, a data-protection company, found that travelers have lost 11,000 mobile devices at the busiest U.S. airports this year, 37.5 percent of them laptops and 37.2 percent tablets or smartphones.

“You are 15 times more likely to have your identity stolen than to have your car broken into,” said Todd Davis, chairman and CEO of LifeLock, an identity-theft protection company.

For more:  http://www.delawareonline.com/article/20111218/BUSINESS/112180321/Identity-theft-risk-increases-when-traveling?odyssey=mod%7Cnewswell%7Ctext%7CBusiness%7Cs

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