Category Archives: Risk Management

by | October 7, 2011 · 3:10 pm

Hospitality Industry Employee Risks: California Supreme Court To Determine Whether "Non-Exempt Employees Are Entitled To Uninterrupted, Off-Duty Meal Periods Of 30 Minutes For Every Five Hours Worked"

“…At issue in the case is whether California employers must ensure that their employees actually take their meal and rest periods or merely make them available. Guidance is also anticipated regarding the time in the workday in which meal and rest periods must be taken and whether or not legally-compliant meal and rest period policies can protect an employer against class actions even when these policies are unevenly enforced…”

The California Supreme Court will hear oral argument in Brinker Restaurant v. Superior Court (Hohnbaum, et al., real parties in interest) on November 8, 2011, according to the Court docket issued this week. The Court generally issues decisions within 90 days after completion of oral argument and submission of post-argument briefs, if any. A decision is expected by mid-February, 2012.

The decision is extremely important to California employers because meal and rest period claims have been the basis of hundreds of class action lawsuits in California. The Court’s decision could make it more difficult for plaintiffs to bring these claims as class actions, or, depending on the ruling, could establish rigid guidelines which may foster more class actions. Either way, California employers and plaintiffs class action lawyers alike have eagerly awaited this decision since the Supreme Court took up the case in October 2008 and look forward to receiving guidance from the high court.

Under California law, nonexempt employees are entitled to uninterrupted, off-duty meal periods of at least 30 minutes for every five hours worked. While there are certain limited exceptions to this rule (such as a revocable written waiver of the meal period in limited circumstances), employers are required to compensate employees for on-duty meal periods. In addition, California law assesses employers a penalty equal to one hour of pay at the employee’s regular rate for every day there is a meal period violation.

For more:  http://hotellaw.jmbm.com/2011/10/labor_brinker_case.html

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by | October 6, 2011 · 5:31 am

Hospitality Industry Guest Health Risks: Maryland Health Officials Find "Legionella Bacteria" In Hotel Water Samples After Guests Hospitalized With Legionnaire's Disease

“…Preliminary results from hotel water samples indicate the presence of the Legionella bacteria, but final results won’t be available until the end of next week, according to DHMH…”

People with a history of smoking, those over the age of 50 and those with lung disease or weakened immune systems are at greater risk of contracting the disease, also known as legionellosis.

Guests at an Ocean City hotel have been voluntarily relocated after three people who stayed there were hospitalized with Legionnaire’s disease, according to the Maryland Department of Health and Mental Hygiene.

The three people developed the form of pneumonia about a week after their stay at the Plim Plaza Hotel, although investigators are still working to determine whether they contracted it there, according to the health department.

The 181-room hotel closed three days before the end of the season in order to test the water system and address any issues, said Betsy FauntLeRoy, director of marketing for the Harrison Group, which owns the Plim Plaza and nine other hotels.

For more:  http://www.baltimoresun.com/health/bs-hs-legionella-20111005,0,5437026.story

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Filed under Guest Issues, Health, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management

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by | October 5, 2011 · 12:36 pm

Hospitality Industry Employment Liability Risks: "Employment Practices Liability Insurance" Does Not Cover Lawsuit Brought By EEOC According To A Federal Court; Insurance "Claims" Limited To Suits Brought By "Employees"

“…A federal court in Tennessee recently ruled that an employer’s employment practices liability insurance (EPLI) did not cover a $2.7 million settlement of a lawsuit brought by the EEOC… because the policy limited “claims” to proceedings brought by employees, and the EEOC was not Cracker Barrel’s employee…”

 The specific language in the policy defined a “claim” as “a civil, administrative or arbitration proceeding commenced by the service of a complaint or charge, which is brought by any past, present or prospective ‘employee(s)’ of the ‘insured entity’ against any ‘insured.’”

After 10 Cracker Barrel Old Country Store employees filed charges of race and/or sex discrimination with the EEOC, the EEOC sued Cracker Barrel under Title VII. Cracker Barrel eventually settled the underlying EEOC lawsuit, entering into a consent decree obligating it to place $2 million into a settlement fund. In addition, Cracker Barrel incurred more than $700,000 in defense costs.    

Although Cracker Barrel gave proper written notice of the EEOC lawsuit to its carrier, the Court ruled that Cracker Barrel was not entitled to recover any of the $2.7 million under its EPLI policy. The Court held that the language in the EPLI policy did not extend to the EEOC lawsuit because the policy limited “claims” to proceedings brought by employees, and the EEOC was not Cracker Barrel’s employee.

For more:  http://www.lexology.com/library/detail.aspx?g=21384c3f-95d2-424d-a68c-ecd547ebe694

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by | October 4, 2011 · 5:44 am

Hospitality Industry Employee Risks: Colorado Hotel Owners Sued By U.S. Equal Employment Opportunity Commission (EEOC) For Firing White Workers In Favor Of Hispanic Workers

“…one of the fired employees was told she was being terminated because the hotel owners preferred non-American and non-Caucasian workers ‘because it was their impression that such workers are lazy’..”

The U.S. Equal Employment Opportunity Commission is seeking back pay for employees that federal officials said were fired from a Hampton Inn franchise in Craig, Colo., according to the lawsuit filed last week.

Former employees at a western Colorado hotel said they were fired and replaced with Latino workers because the business owners thought white and non-Hispanic workers were lazy, according to a federal lawsuit announced Monday.

The lawsuit claims the general manager of the hotel was told by the business owners “to hire more qualified maids, and that they preferred maids to be Hispanic because in their opinion Hispanics worked harder.”

For more:  http://www.businessweek.com/ap/financialnews/D9Q51LLO1.htm

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by | October 3, 2011 · 11:40 am

Hospitality Industry Health Risks: Two Workers Die Of Hydrogen Sulfide Gas Poisoning While Working On A Pump Storage Tank At A Maine Hotel

“…Autopsies of two workers who collapsed and died while repairing a submersible pump in a pump storage tank at a Kennebunkport, Maine, hotel on Sept. 27 reveals they were exposed to high levels of hydrogen sulfide gas… It is suspected that the men did not test the atmosphere before they entered the tank..”

 “…Hydrogen sulfide is given off by bacteria present in sewage and exposure quickly can lead to unconsciousness and death…”

The storage tank where the men were working is 9 feet below ground and approximately 4 feet high by 6 feet long by 5 feet wide. Neither man was wearing a respirator when the bodies were found.

Studley and Kemp were working near an employee of Nest and Sons, who was pumping out the underground tank. He left with a load of sewage and when he returned, the men were gone, even though their truck still was in the parking lot. At that point, a hotel employee reporting them missing and when pumping was resumed in the tank, one of the bodies surfaced. The tank was searched and the second body was found.

For more:  http://ehstoday.com/safety/confined_space_workers_killed_1003/

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by | October 1, 2011 · 5:33 pm

Hospitality Industry Employee Risks: Nevada Hotel Sued By Federal Government For "Racial Harassment"

“…Federal officials say hotel managers were first told in 2006 that several Hispanic room attendants had been subject to the comments referencing their ethnicity and skin color. The comments came from coworkers and supervisors. Some of the comments were profane…and derogatory names such as “taco bell” and “bean burrito.”

The U.S. Equal Employment Opportunity Commission announced Friday that it had filed a lawsuit against the Pioneer Hotel in Laughlin, Nev. for ignoring the alleged harassment.

The hotel allegedly didn’t take action to prevent or correct the harassment in violation of the federal Civil Rights Act. Federal officials say some Nevada casinos seem to be retaliating against employees who complain about hostile work environment.

http://www.washingtonpost.com/national/feds-sue-nevada-hotel-for-not-protecting-hispanic-employees-from-harassment/2011/09/30/gIQA5ZYABL_story.html

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by | September 30, 2011 · 5:33 am

P3 Hospitality Industry Risk Report: "Food Poisoning Claims" Discussed By Todd Seiders, Director Of Risk Management For Petra Risk Solutions (Video)

[youtube=http://www.youtube.com/watch?v=lNI4lz7_scE]

Petra Risk Solutions’ Director of Risk Management, Todd Seiders, offers a P3 Hospitality Risk Report – ‘Food Poisoning Claims’.

P3 ( Petra Plus Process) is the Risk Management Division of Petra Risk Solutions – America ’s largest independent insurance brokerage devoted exclusively to the hospitality marketplace.

For more information on Petra and P3 visit petrarisksolutions.com or call 800.466.8951.

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by | September 29, 2011 · 6:09 am

Hospitality Industry Information Security: Major Hotels Move Closer To "Secure Payments Framework" That Will Protect Guest Credit Card Data Through "Tokenization"

 “Every major hotel company is working to get as many of their systems as possible out of the scope of the Payment Card Industry Data Security Standards (PCI-DSS)…Most of these companies have focused on solutions based on tokenization, and many have implemented them or are in the process of doing so.”

Tokenization is a process whereby sensitive card data is stored in a single secure location, which may be operated by a hotel brand, a payment gateway or another third party, and replaced in hotel systems by substitute “tokens.”  The tokens can be used to complete the transaction, but are useless if intercepted electronically by a thief. 

Top hotel security executives met several times to discuss this problem as the HTNG Secure Payments Framework effort took shape during August and early September.  Early discussions indicated a broad agreement that a single industry framework is needed, and that the framework needs to work with existing security approaches in place at major hotel companies and in commonly used systems.  There was also agreement on the key elements needed for the industry framework.  The group intends to document this framework conceptually in a white paper that will form the basis for subsequent standards development.

  This new effort will leverage hotel companies’ prior investment in tokenization efforts, adding a layer of security that will enable those solutions to be extended to unrelated parties that may be involved in transactions, such as online travel agencies, global distribution systems, switches, channel management systems, central reservation systems, management companies, independent hotels, payment gateways, swipe devices, and other parties.  “The approach is intended to enable the tokenization of card data by the first system that touches the reservation,” said Rice.  “The sensitive data will remain stored in a secure vault, and all of the other systems will simply pass along the token in place of the credit card.  The hotel itself can then submit the token to its token provider or gateway to complete the card transaction.  The card data itself need never touch a hotel system.”

For more:  http://www.hotelnewsresource.com/article58324.html

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by | September 28, 2011 · 5:20 am

Hospitality Industry Employee Risks: Rising Health Insurance Premiums Force Hotel Management To Consider Shifting Costs Or Raise Deductibles

“…Employers are often forced to shift some of the cost to their employees in an effort to offset the increasing outlay. Organizations increased the employee portion of the premium at a rate of 54.3 percent, whereas 42 percent have increased deductible levels….”

 The 2011 Compensation Data Hospitality survey results show companies reported an average premium increase of 9.3 percent. More than 45 percent of respondents indicated they pay more than $9,600 annually for an employee plus family plan.

“The rising cost of insurance premiums is something that continues to be an issue for employers,” says Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “To counteract these rising costs, organizations have to look in different directions in order to continue providing quality coverage for their employees.”

Premium costs remain high for hospitality employers, as 47.9 percent pay more than $7,200 for an employee-plus-spouse plan. Of survey respondents, 42 percent report paying more than $7,200 in premium costs for an employee-plus-children plan. Employee-only plans cost employers between $2,400 and $7,200 per year.

For more:  http://www.qsrmagazine.com/news/medical-insurance-rises-hospitality-industry

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by | September 27, 2011 · 6:10 am

Hospitality Industry Guest Health Risks: Illinois Hotel Sued Six Months After Guests Discovered Bed Bugs In Room

A hotel employee again offered the couple a new room, the lawsuit said, but they declined. After they returned home, they said Gonzales noticed bite marks on Layman’s shoulder. She said a doctor confirmed she was bitten by bed bugs, and the couple’s suit said a Hollywood Casino manager acknowledged the pests were bed bugs.

“..they pulled down the covers and discovered red bugs running on the sheets. Layman said she videotaped the bugs with her cell phone…”

 

A Blue Island couple is suing the Hollywood Casino Joliet and its hotel, saying they found bed bugs in their room more than six months ago. Tamara Layman and Leo Gonzales filed the lawsuit in Will County this month. Layman said she first tried asking a manager there to simply reimburse her for doctor visits, lost property and a ruined weekend. But she said she’s had no success.

The lawsuit said Layman and Gonzales checked into the casino’s hotel March 5, left their luggage in their room and went to the casino. They returned a few hours later and went to sleep. But Layman said she woke up at 1:30 a.m. and noticed a bug on a pillow.

Gonzales killed the bug, and Layman carried it in a tissue to the hotel’s front desk, where an employee offered to give them another room.

Layman and Gonzales said they threw out most, if not all, of what they brought to the casino including luggage. They also said it took 17 days for the hotel to send an exterminator to their home for an inspection.

For more:  http://news.google.com/news/more?q=hotel&hl=en&bav=on.2,or.r_gc.r_pw.&biw=1366&bih=497&wrapid=tlif131713187418910&um=1&ie=UTF-8&ncl=d6mgZ9jhZCUXCgMuGZI-DUW1QcQjM&ei=adaBTpPAMI7MsQLqmoiYDw&sa=X&oi=news_result&ct=more-results&resnum=10&ved=0CMsBEKoCMAk

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