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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by | December 17, 2011 · 11:35 am

Hospitality Industry Guest Safety: New York Hotel Elevator Malfunctions "Killing Hotel Guest" Hours After "Electrical Maintenance Repairs"

“…Electrical maintenance work was being performed on an elevator just hours before it malfunctioned, killing an advertising executive in Midtown…”

Photo by Hiroko Masuike/The New York Times

“…The last fatal elevator accident in the city also involved Transel: Robert Melito, 44, a technician for the company, was servicing an elevator on the 10th floor of a building at 230 West 38th Street on Sept. 23 when he fell to his death…”

Suzanne Hart, 41, was crushed to death on Wednesday morning after the elevator she was stepping into lurched upward, pinning her between the outside of the car and the wall of the elevator shaft.

Mr. Sclafani said the department would be conducting citywide sweeps of elevators maintained by Transel Elevator Inc., the company that serviced the elevators at 285 Madison Avenue, where the accident occurred.

The company maintains elevators at nearly a dozen prominent buildings in the city, according to Transel’s Web site, including the Graybar Building, the BMW Building and the Hippodrome Building. Additional clients listed on the Web site include Carnegie Hall and the Plaza Hotel.

For more:  http://www.nytimes.com/2011/12/16/nyregion/elevator-that-killed-yr-executive-was-undergoing-maintenance-city-says.html?_r=1

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by | December 16, 2011 · 7:03 am

Hospitality Industry Crime Prevention: Montana Police Task Force Trains Hotel Employees To Look For Evidence Of Drug And Prostitution Activity

Employees are taught to look for signs such as people who pay only in cash, give false vehicle information or don’t let housekeeping into their rooms for long periods of time.

The task force recently began implementing a program in which hotel and motel employees are trained to look for evidence of illegal drug activity coming from rooms, and to know who to call if they see something suspicious.

The recent arrests of three people suspected of running a prostitution operation in a room at the TownHouse Inn was a result of a tip made by an employee of the hotel to the Central Montana Drug Task Force.

The employee was trained by Sgt. Chris Hickman of the Great Falls Police Department, a member of the multi-agency task force, to recognize signs of suspicious behavior. While it was initially suspected that the three individuals were running a drug operation, Hickman said he was glad that officers were able to shut down the alleged prostitution as a result cooperation from hotel staff.

 According to Hickman, police are pursuing three active cases because of tips from cooperative lodging employees in Great Falls, but an unfortunate by-product of that cooperation can sometimes be a sullied reputation for the business if a tip leads to a publicized arrest.

For more:  http://www.greatfallstribune.com/article/20111214/NEWS01/112140311/Great-Falls-program-netted-prostitution-ring-relies-hotel-staff-tips

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by | December 15, 2011 · 6:47 am

Hospitality Industry Guest Safety: Hotels And Resorts Face Lawsuits Over Severe Burns To Children From Guest Room "Glass Fireplaces"; Glass Can Reach Temperatures Of 400 Degrees

“…more than 2,000 children ages 5 and younger have suffered burns from fireplace glass since 1999, according to a federal estimate. Some burn specialists think the actual toll is higher…”

“…(one) lawsuit, filed this June in federal court in Denver, seeks damages from several fireplace companies along with operators of the resort. They knew “these fireplaces would be installed at heights for which the decorative glass front was perfectly suited to contact by infants and small children,” the lawsuit states, yet “took no steps to guard against direct contact with the super-heated glass or to meaningfully warn about the extreme…burn potential.”

Citing the “extreme risk of injury,” the American Burn Association, representing burn surgeons, nurses and therapists, last week became the latest to call for adoption of a mandatory safety standard. It joins such groups as Consumers Union and the Consumer Federation of America.

The glass commonly reaches temperatures of 400 degrees, as hot as an oven on broil, and is usually placed at a perfect height for curious toddlers to touch or fall into. These encounters can easily result in skin graft surgery and painful recovery, with medical costs in the six figures. One safety expert called it an “insidious and unappreciated hazard.”

Consumer groups and anguished parents are urging the Consumer Product Safety Commission to impose federal safety regulations. But the fireplace industry, which up to now has policed itself, is resisting. To head off federal regulation and more lawsuits from families of burned kids, manufacturers are working on a revision to their current voluntary standard that will be taken up by an industry technical panel on Dec. 13.

For more:  http://www.tucsonsentinel.com/nationworld/report/121211_fireplace_burns_regs/fireplace-industry-resists-regulation-over-child-burns/

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