Tag Archives: Lawsuits

by | October 12, 2012 · 6:13 am

Hospitality Industry Legal Risks: Texas Restaurant Settles "Disability Discrimination" Lawsuit For $41,500 And Agrees To Train Managers On Use Of "Hearing-Impaired Communication Systems"

“…the EEOC alleged that the company violated the Americans with Disabilities Act of 1990 by denying job applicant Michael Harrison employment at its Wendy’s franchise in Killeen, Texas, after learning of his hearing impairment…In addition to paying $41,500 to Mr. Harrison, Wendy’s agreed to provide all managers and supervisory employees training on the ADA and specific training on the use of hearing-impaired communication systems…”

A franchisee of The Wendy’s Co. fast-food restaurant chain has agreed to settle a disability discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission, paying $41,500 to resolve the case and implement employee training.

After successfully interviewing with the Wendy’s shift manager for a cooker position, Mr. Harrison was interviewed by the general manager through a telephonic system for the hearing-impaired. During the course of the interview, the EEOC alleged that the general manager told Mr. Harrison that “there is really no place for someone we cannot communicate with,” the EEOC said in the statement.

After failing to reach a prelitigation settlement, the EEOC filed the lawsuit in the U.S. District Court for the Western District of Texas in Waco.

For more:  http://www.businessinsurance.com/article/20121011/NEWS07/121019971?tags=|70|75|305|303

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by | October 11, 2012 · 6:11 am

Hospitality Industry Legal Risks: Nevada Hotel Settles Employment Discrimination Lawsuit With Justice Department For $49,000; Must Implement New Employment Eligibility Verification Policies

“Employers may not treat authorized workers differently during the employment eligibility verification and reverification process based on their citizenship status or national origin,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.

Under the settlement agreement, Tuscany will pay $49,000 in civil penalties to the United States and full back pay to a victim.  In addition to corrective action already taken, Tuscany also agrees to implement new employment eligibility verification policies and procedures that treat all employees equally regardless of citizenship status, conduct training of its human resources staff on their responsibilities to avoid discrimination in the employment eligibility verification process, and be subject to reporting and monitoring requirements.

The Justice Department today reached an agreement with Tuscany Hotel and Casino LLC in Las Vegas resolving a lawsuit alleging that the company discriminated in the employment eligibility verification and re-verification 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 department’s case, filed on May 11, 2012, alleged that Tuscany treated non-citizens differently from U.S. citizens during the employment eligibility verification and reverification process.   The complaint alleged the casino required non-citizen employees to provide more or different documents or information than it required from citizen employees during the initial employment eligibility verification process.  According to the complaint, the company then used the documents or information it gathered to impose improper document requests on non-citizens during the reverification process as a condition of continued employment.
The complaint further alleged that the casino subjected non-citizen employees’ documents to a heightened review process by senior human resources representatives that was not applied to documents presented by U.S. citizens.

For more:  http://www.opposingviews.com/i/society/drug-law/justice-department-settles-lawsuit-against-las-vegas-casino-unfair-documentary

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by | October 6, 2012 · 7:05 am

Hospitality Industry Legal Risks: North Carolina Restaurant Ordered To Pay $1.7 Million To Parents Of "Unborn Child" Killed By Man In Alcohol-Related Head-On Collision

 “…attorneys say Huffman had been drinking at Eddie’s Place, and that his blood alcohol content was 0.23, nearly three times the legal limit in North Carolina…”

A jury has awarded a Charlotte couple $1.7 million in a lawsuit against a local restaurant in connection with a head-on collision that killed the couple’s unborn son.

Attorneys for Matt and Meredith Eastridge say 25-year-old David Canter Huffman was speeding in his Volvo on Oct. 29, 2010, when the car crossed the center line and hit Matt Eastridge’s Toyota RAV4.

Police say Huffman died in the crash, as did the Eastridges’ unborn son. Meredith Eastridge was a front-seat passenger and was six months pregnant.

For more:  http://www.therepublic.com/view/story/106eccfc426d4238a06f31c1cffbbf72/NC–Collision-Lawsuit

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by | October 5, 2012 · 6:20 am

Hospitality Industry Legal Risks: Workers File Class-Action Lawsuit Against Los Angeles Hotel For "Millions Of Dollars In Unpaid Wages"

“…(the suit) alleges that management has routinely required them to work through required lunch breaks and rest periods and after clocking out…Housekeepers also claim hotel management refused to reimburse them after requiring them to buy cleaning supplies such as sponges and gloves to clean guest bathrooms…”

The suit also alleges that a majority of Holiday Inn LAX employees are earning less than $11.97 per hour, the minimum living wage for hotel workers in the LAX corridor.

Workers at the Holiday Inn Los Angeles International Airport filed a class action lawsuit on Thursday demanding millions of dollars in alleged unpaid wages. A non-union group of bartenders, housekeepers, cooks and other workers filed the suit with support from L.A. hospitality labor union Unite Here Local 11.

Adrian Valencia, general manager at Holiday Inn LAX, said the hotel was surprised by the lawsuit.

“We had never been contacted by the union until Monday, when they stormed in yelling and screaming into the administration offices,” he said. “We pay the annual living wage increase as of July 1 each year and we have some of the best scores for a Holiday in as far as cleaning. We use proper procedures here at the hotel.”

Randy Renick, the attorney representing the workers, said the goal of the suit is to address long-standing labor grievances.

For more: http://www.labusinessjournal.com/news/2012/oct/04/lax-hotel-employees-file-suit-unpaid-wages/

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by | October 2, 2012 · 6:17 am

Hospitality Industry Legal Risks: Small California Restaurants Face "Expensive And Time-Consuming" ADA Lawsuits, Forcing Some To Close Down

“…Texas West BBQ in Sacramento faced a lawsuit in 2007…and made the needed changes…but then, in March of this year, a second lawsuit is forcing Texas West BBQ to make more changes to be ADA-compliant…including better striping in the parking lot, wider doors, and a larger bathroom…it will cost nearly $35,000…”

An American with Disabilities Act lawsuit was the last straw for a struggling, longtime burger business. Ford’s Real Hamburgers on Sutterville Road shut down just weeks after the governor signed a new state law that would crackdown on ADA lawsuit abuse.

Several attorneys have filed an exceptional number of lawsuits based on ADA violations. Attorney Scott Johnson has filed nearly 2,200 of them in federal court. More often than not, businesses settle after paying thousands of dollars.

“It scares you because it’s so expensive and time-consuming,” said Louise Haynes.

Gov. Brown just signed a bill co-authored by Senate President pro Tempore Darrell Steinberg, D-Sacramento, that would prevent frivolous lawsuits. It would ban demand letters. It gives the defendant time to fix the ADA violations. It’ll also prevent lawyers from stacking multiple claims to increase pay-outs.

” It prevents what I like to call ‘legalized extortion,'” said Travis Hausauer who is co-chair of Californians Against Lawsuit Abuse. His Squeeze Inn Burger restaurant was sued twice by two different attorneys.

” I got sued in court the first time, then I got sued in federal court the second time around,” said Haushauer.

Many people believe the state law is a positive step. But some say it won’t stop ADA lawsuits because attorneys will continue to file lawsuits in federal court.

For more:  http://landpark.news10.net/news/news/105381-ada-lawsuit-leads-long-time-sac-burger-business-close

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by | September 30, 2012 · 7:06 am

Hospitality Industry Legal Risks: Texas Restaurant Chain Sued By EEOC For Firing "Pregnant Employees Under A Discriminatory Written Policy"

“…According to the EEOC’s lawsuit, Maryann Castillo and other female workers were laid off after the third month of their pregnancies under a written policy, set out in Bayou City Wings’ employee handbook…”

JC Wings Enterprises, LLC, doing business as Bayou City Wings, a Baytown-based restaurant chain, violated federal law when its managers laid off pregnant employees under a discriminatory policy, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit it filed today.

  Bayou City Wings owns and operates restaurants in Baytown, Houston and surrounding areas.  The company’s district manager laid off Castillo pursuant to the policy even though she had provided a doctor’s note that indicated she could work up to the 36th week of her pregnancy and that her doctor had not placed any restrictions on her ability to work.

During the EEOC’s investigation of a discrimination charge brought by Castillo, Bayou City Wings named eight female employees who were laid off from work because of their pregnancies.  According to a Bayou City Wings general store manager, for a manager to keep a pregnant employee at work any longer would “be irresponsible in respect to her child’s safety” and would jeopardize his position with the company “for not following procedures.”

Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act, prohibits employers from discriminating against employees on the basis of sex or pregnancy.  The EEOC filed suit (Civil Action No. 4:12-cv-02885) in U.S. District Court for the Southern District of Texas, Houston Division, after first attempting to reach a pre-litigation settlement through its conciliation process.   The EEOC seeks an injunction, back pay with pre-judgment interest, reinstatement or front pay, compensatory damages and punitive damages, in amounts to be determined at trial.

For more:  http://www.eeoc.gov/eeoc/newsroom/release/9-12-26d.cfm

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by | September 29, 2012 · 6:51 am

Hospitality Industry Safety Risks: Hotel Guests At Risk Of Injury As Shower Door Glass Can Shatter With The "Force Of An Explosion"

“…court records (documented)…a federal lawsuit filed earlier this year against the Four Seasons Hotel in Chicago. A woman, who stayed at the hotel in 2007, says she opened a shower door and suddenly “the force of an explosion” threw here “violently across the toilet” and caused her “serious injuries.” Pictures are filed with the lawsuit showing tiny particles of glass layered on the hotel bathroom and filling the toilet…”

Hotels need to be really vigilant about this problem…(says) a glass expert who may soon testify in three cases where guests were injured when their shower doors shattered… “The two main types of injuries are where their bodies get cut and the other ones are where they are walking out on glass and cutting their feet.”

Another couple posts video on Vimeo showing what allegedly happened to them during their Hawaiian honeymoon at the Ohana Hotel in Waikiki West. You can hear the water running from the shower, see his wife standing in the water, and feel her pain as she obviously had to find a way out through shattered glass all over the floor. The new groom, Lance Ogren, looks into his own home video camera and says, “I heard her start to open (the shower) and I heard a big crash.” Ogren tells CBS 11 news the hotel gave them an apology and a new room.

Meshulam says most shower doors have tempered glass which is heated and then cooled creating tension for durability. He demonstrated how hard it is to break slamming a hammer into a tempered glass shower door several times before it finally shatters. He says the door are considered safe because under stress they shatter into tiny pieces; however, he says there are several reasons why a shower door might explode.

One is a small crack, like the one in your windshield, that just slowly grows out like a spider web. “When it hits a certain part of the glass where all those internal tensions are residing then everything blows up.” He also says towel bars might not be installed properly. Or, doors may not slide on the tracks correctly. These can cause pressure over time. Finally, there could be a problem during the manufacturing process if a microscopic grain of nickel sulfide gets trapped inside the glass. This manufacturing defect is a “ticking time bomb.”

For more:  http://dfw.cbslocal.com/2012/09/28/cbs-11-investigates-shattering-shower-doors/

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by | September 28, 2012 · 6:16 am

Hospitality Industry Legal Risks: California Hotel Sued By Family Of Woman Killed Crossing Street To Parking Lot; "Duty To Ensure Safety Of Guests"

“…The civil complaint alleges The Cliffs Resort has a duty to ensure the safety of its customers but failed to do so…the location is dangerous because resort patrons who do not use valet service must park on the east side of Shell Beach Road…they must cross the busy street without the benefit of a crosswalk, traffic controls, warning signs, or proper lighting…the lawsuit claims.”

The family of a woman struck and killed by an SUV while crossing Shell Beach Road in Pismo Beach nearly a year ago has filed a lawsuit seeking to improve safety at the site. The lawsuit was filed April 11 against The Cliffs Resort and the city of Pismo Beach by San Luis Obispo personal injury lawyer  Ryan Harris on behalf of the family of Tricia Rittger.

The Los Osos resident was 39 when she was struck Nov. 19, 2011, in front of the hotel and subsequently died, leaving behind husband Aaron and a 4-year-old daughter.

Harris said the lawsuit seeks to force The Cliffs and the city to improve safety for customers walking from the parking lot across Shell Beach Road to the hotel and restaurant.

For more: http://www.timespressrecorder.com/articles/2012/09/28/news/news54.txt

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by | September 24, 2012 · 6:30 am

Hospitality Industry Legal Risks: "Tip Pool Skimming" Class-Action Lawsuit Filed Against New York Restaurant; Over 100 Former Waitstaff Claim Managers Took 26% Of Tips

“…The suit, filed by more than 100 people who’ve worked there for the last six years, also claims that Les Halles paid waitstaff less than the $5 minimum wage for food service employees…”

Anthony Bourdain’s Les Halles is the latest restaurant to be hit with a lawsuit from waitstaff alleging that management skimmed from their tipping pool. Both of the restaurants’ locations are named in the suit, which according to the Post alleges that floor managers took 26% of the pool.

“In my experiences at Les Halles, management was, if anything, unusually scrupulous about these things,” Bourdain, the chef-at-large, said, referring to the group of people who almost certainly do not raid the bar after-hours while blasting a Kool & The Gang Pandora station through the restaurant’s speakers.

We always preferred pooling as opposed to the vicious, territorial struggle of solo-sectioning, but this could be Bourdain’s biggest stumbling block since he ate a bunch of flesh in front of starving rich people.

For more:  http://gothamist.com/2012/09/23/anthony_bourdains_les_halles_sued_f.php

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by | September 23, 2012 · 7:53 am

Hospitality Industry Legal Risks: Wisconsin Restaurant Sued By Former Employees For Violation Of State And Federal Wage Laws; Plaintiffs Seek $46,000 Plus Liquidated Damages And Attorneys Fees

“…servers are paid at a sub-minimum wage rate, plus their tips…the complaint alleges that Ginza management wholly failed to pay any base compensation to Wu and Qin, who only received tips…in addition, the restaurant did not pay overtime compensation when the employees worked over forty hours each workweek…”

“…the restaurant failed to have their servers sign a tip declaration each pay period…and failed to pay the two servers in the amount of $46,000. Under the Fair Labor Standards Act, the servers are entitled to their back pay, plus an equal amount of liquidated damages and attorneys’ fees and costs…”

Two former servers at Ginza Japanese Restaurant in Wauwatosa filed suit Friday in federal court in Milwaukee against Ginza PZW Corp. and Ping Xiao Fang, who operates the business, alleging violations of both state and federal wage laws.

According to one of the plaintiffs, Ginza initially paid her no wages at all, only letting her keep tips. Later, both of the servers assert, Ginza did begin cutting paychecks, but then simply demanded they pay the restaurant back the after-tax portion of their pay.

For more:  http://wauwatosa.patch.com/articles/ginza-restaurant-sued-over-employee-pay

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