Tag Archives: Lawsuits

by | September 22, 2012 · 6:04 am

Hospitality Industry Legal Risks: Indiana Hotel Settles "Racial Discrimination Lawsuit" With EEOC For $355,000

The operators of an Indianapolis hotel have agreed to pay $355,000 to settle allegations they underpaid and fired African-American housekeepers because of their race…the settlement will be divided among 75 employees or job applicants.

The U.S. Equal Employment Opportunity Commission announced Friday that it had filed a consent degree in federal court with     Noble Management LLC and New Indianapolis Hotels LLC, which operate the Hampton Inn on Shadeland Avenue on Indianapolis’ north side.

The agency says the companies also retaliated against black employees who complained about racial bias. The EEOC also says the hotel regularly excluded African-American job applicants who were equally or better qualified than the Hispanic applicants it hired as housekeepers.

For more:  http://www.ibj.com/indy-hotel-to-pay–355-000-to-settle-race-lawsuit/PARAMS/article/36844

Comments Off on Hospitality Industry Legal Risks: Indiana Hotel Settles "Racial Discrimination Lawsuit" With EEOC For $355,000

Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Risk Management

Tagged as , , , , ,

by | September 16, 2012 · 7:31 am

Hospitality Industry Legal Risks: Restaurants Forced To Settle "Class-Action Lawsuits" For "Wage And Hour" Claims; Potential Damages Are Double Wages Owed Dating Back 2-6 Years

“… a restaurant  is permitted to require front-of-the house employees to “pool” their tips, the  pool may be illegal if it is shared with employees who interact with customers  only indirectly. And if the pool is illegal, regardless of the reason, the  restaurant can incur enormous liabilities to employees, even if those employees  each collect hundreds of dollars per week in tips, which is often the case…”

The hospitality industry is under siege by attorneys who stand to gain big  fees from huge class-action settlements. The same gains do not apply, however,  to the waitstaff and other restaurant employees on whose behalf these lawsuits  are filed.

On a federal level, wage and hour claims are brought under the Fair Labor  Standards Act, passed in the 1930s to address intolerable conditions, such as  child labor and six-day workweeks of 10- to 12-hour days without overtime pay.  Such conditions were long ago eradicated from most restaurants and other  establishments, but the FLSA, as well as state wage and hour laws, have  continued to expand by prohibiting common practices that many eateries have  followed for years.

When faced with class actions, most restaurants have few options. Potential  damages often amount to double the wages or tips owed, dating back from two to  six years. Prejudgment interest rates can be as high as 9%, depending on the  state, and plaintiffs’ “reasonable” attorneys’ fees can be enough to put many  operations out of business. Not included here are the costs of defense counsel,  the hit to the restaurant’s reputation, and the disruption of daily operations.  For many owners, settling the plaintiffs’ claims, regardless of their merit, is  the most reasonable business decision.

Read more: http://www.crainsnewyork.com/article/20120916/OPINION/309169972#ixzz26e5yTkfQ

Comments Off on Hospitality Industry Legal Risks: Restaurants Forced To Settle "Class-Action Lawsuits" For "Wage And Hour" Claims; Potential Damages Are Double Wages Owed Dating Back 2-6 Years

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

Tagged as , , , ,

by | September 13, 2012 · 6:15 am

Hospitality Industry Legal Risks: Illinois Restaurant Sued For "Negligence" After Repairman "Set On Fire" By Employee; Seeks $50,000 In Damages

“…a recently filed lawsuit argues the East China Inn was negligent, and seeks more than $50,000 in damages…the man was standing on top of the stove inspecting a sprinkler system and changing a fuse…he needed medical treatment for a year…”

A fire suppression repairman has sued the East China Inn restaurant on Randall Road in Batavia, arguing he was set on fire while working during an October 2010 visit. Matthew Rapp, 25, of Oak Forest sustained severe burns to his left leg after someone turned on a wok while Rapp was atop a stove fixing fuses, his attorney said.

“He got burned quite badly,” said attorney Matt Willens, adding Rapp was burned mostly on his left leg from his ankle to his knee. “Because of the burn, he missed 21 weeks of work. He was burned by grease.”

The suit states that Rapp visited the Chinese restaurant on Oct. 12, 2010, for his job with Fire Science Techniques. “A restaurant employee turned on the stove or continued to work on the stove that the plaintiff was working above which set the plaintiff on fire,” the lawsuit states.

For more: http://www.dailyherald.com/article/20120912/news/709129713/

Comments Off on Hospitality Industry Legal Risks: Illinois Restaurant Sued For "Negligence" After Repairman "Set On Fire" By Employee; Seeks $50,000 In Damages

Filed under Fire, Injuries, Insurance, Liability, Management And Ownership, Risk Management, Training

Tagged as , , , , ,

by | September 7, 2012 · 6:20 am

Hospitality Industry Employment Risks: Florida Restaurant Group Faces Lawsuit For "Failing To Pay Minimum Wages" And Forcing Employees To Work "Off-The-Clock" (Video)

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

[youtube=http://www.youtube.com/watch?v=PoEWJzbMDw0]

The lawsuit accuses the Orlando, Florida-based company of failing to pay federally mandated minimum wages and forcing its waiters and waitresses to work “off-the-clock” before or after their shifts.

Darden Restaurants Inc, best known for its Olive Garden and Red Lobster chains, was hit with a lawsuit in federal court in Miami on Thursday accusing one of the largest U.S. restaurant operators of violating federal labor laws by underpaying workers at its popular eateries across the country.

Filed under the Fair Labor Standards Act, it also claims many Darden employees have failed to receive appropriate overtime wages for work in excess of 40 hours per week.

Only two plaintiffs are named in the 19-page complaint filed on Thursday in U.S. District Court for the Southern District of Florida.

For more:  http://in.reuters.com/article/2012/09/06/usa-darden-lawsuit-idINL2E8K6HAN20120906

Comments Off on Hospitality Industry Employment Risks: Florida Restaurant Group Faces Lawsuit For "Failing To Pay Minimum Wages" And Forcing Employees To Work "Off-The-Clock" (Video)

Filed under Employment Practices Liability, Insurance, Labor Issues, Liability, Management And Ownership, Training

Tagged as , , , , , , ,

by | September 6, 2012 · 6:07 am

Hospitality Industry Legal Risks: California Restaurant Chain Faces Class Action Lawsuit For "Race, Color And Age Discrimination"

The suit alleges that In-N-Out Burger “recruits, hires and maintains a work force that is predominantly under the age of 40 and/or non-African-American.”…the suit also seeks back pay as well as compensatory damages and punitive damages on behalf of people who have been unlawfully denied employment with In-N-Out Burger.

A Berkeley law firm has filed a class action lawsuit alleging that Irvine-based restaurant chain In-N-Out Burger maintains hiring practices that discriminate on the basis of race, color and age. The suit, which was filed in Alameda County Superior Court on Tuesday, was filed on behalf of two black men from Oakland over the age of 40 who recently applied for jobs at In-N-Out Burger restaurants in Oakland and San Francisco but weren’t hired.

The suit says both men were qualified for the jobs they applied for and alleges that they weren’t hired because of their race and their age.

The restaurant chain has 210 restaurants in California and thousands of employees but the suit charges that “very few” are over 40 and/or black.

Steve Tidrick, the attorney for the plaintiffs, said the suit alleges that In-N-Out Burger has “a pervasive policy of discrimination on the basis of race, color and age” in its hiring practices and seeks to end those practices through injunctive relief.

For more:  http://www.mercurynews.com/breaking-news/ci_21477996/oakland-lawsuit-accuses-n-out-burger-racial-and

Comments Off on Hospitality Industry Legal Risks: California Restaurant Chain Faces Class Action Lawsuit For "Race, Color And Age Discrimination"

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

Tagged as , , , , , ,

by | September 5, 2012 · 6:17 am

Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

 “It is rampant in the restaurant industry…it is a
culture of post-shift drinking, and in some restaurants, drinking during the
shift. It’s almost like a fringe benefit in some high-end restaurants, this
tradition of drinking after work.”

Husk’s owner, Marietta, Ga.-based Neighborhood Dining Group Inc., and its insurer agreed last month to settle the suit for $1.1 million. The company denied fault or liability.

The fiery crash and lawsuit also have put restaurants across the USA on notice that a tradition at many restaurants — in which employees share a drink after work in a spirit of camaraderie — can have devastating consequences.

The 4 a.m. crash occurred last December, when Adam Burnell, 32, an assistant manager and sommelier at Charleston’s Husk restaurant, allegedly drove his Audi into the back of a Mustang driven by Quentin Miller, 32. The crash slammed Miller’s car into a concrete wall; it erupted in flames, trapping him inside. He died at the scene. Burnell, who prosecutors said had a blood-alcohol level of 0.24%, three times the legal limit, was charged with felony driving under the influence.

Miller’s family filed a wrongful-death lawsuit, alleging that Husk allowed Burnell to drink to excess on its premises after hours and then drive drunk. It was a stumble for a restaurant that was named “Best New Restaurant in America” by Bon Appetit magazine months earlier. Husk also was ranked one of the “101 Best Places to Eat in the World” by Newsweek magazine last month.

Burnell, who sustained minor injuries and is awaiting trial, was not named as a defendant.

Neighborhood Dining Group already had a policy that prohibits employees of its four restaurants — three in Charleston and one in Atlanta — from drinking on the premises, President David Howard says.

For more:  http://www.usatoday.com/news/nation/story/2012-09-04/restaurants-drinking-lawsuit-crash-south-carolina/57586486/1

Comments Off on Hospitality Industry Legal Risks: Georgia Restaurant Group Settles Alcohol-Related "Wrongful Death Lawsuit" For $1.1 Million; "Post-Shift Drinking By Employees Is Rampant In Restaurant Industry"

Filed under Claims, Crime, Guest Issues, Injuries, Insurance, Labor Issues, Liability, Management And Ownership, Training

Tagged as , , , , , , ,

by | August 29, 2012 · 1:15 am

Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Maintain "Employment Practices Liability Insurance" And Institute Complaint Procedures To Reduce Employee Lawsuits

 “…these suits catch employers by surprise since, even if they terminate an employee for a business reason, every separated employee can claim discrimination on the basis of a protected class such as race, gender or sexual orientation…”

Employers who can afford it purchase Employment Practices Liability Insurance (EPLI) to protect their businesses.

In the last three to four years, HR lawsuits have been on the rise, and unfortunately, there does not seem to be any end in sight. The U.S. Department of Labor reports the number of lawsuits related to the Fair Labor Standards Act, alone, increased 35 percent in three years. And this is only one small area that an employer can be sued. The following steps can be taken to minimize lawsuits:

  • Your employee handbook must contain broad and multi-tiered complaint procedures so employees have sufficient recourse when they feel victimized by harassing or discriminating behavior.
  • Provide annual employment law training to all of your supervisors and require them to sign acknowledgments.
  • Educate your employees at the time of hire – during orientation, for instance – about the avenues open to them should they have a problem and need to complain.
  • Most critically, take prompt remedial action when someone complains. In other words, do something about it within 48 hours or less of receiving the complaint. It is best to seek legal advice when such a complaint occurs.

For more:  http://www.floridatrend.com/article/14575/more-employees-are-suing-employers

Comments Off on Hospitality Industry Legal Risks: Hotel And Restaurant Owners Should Maintain "Employment Practices Liability Insurance" And Institute Complaint Procedures To Reduce Employee Lawsuits

Filed under Claims, Insurance, Labor Issues, Liability, Maintenance, Risk Management

Tagged as , , , , , ,

by | August 23, 2012 · 6:05 am

Hospitality Industry Legal Risks: Wisconsin Restaurant Owners Sued For $550,000 For "Negligence" In Alcohol-Related Shooting Death Of Patron

“… the defendants (are accused) of violating the Illinois Wrongful Death Act… were negligent for failing to take reasonable actions to protect customers, allowing a patron with weapons to be on the premises and allowing people inside the restaurant who were “quarrelsome, disorderly, hostile and vicious.”

The family says they have lost their means of support while also suffering a loss of society, consortium, guidance and companionship. The Ortizes ask to be awarded more than $550,000 in damages plus courts costs.

A Pontoon Beach restaurant is accused of causing the death of a Granite City man who was shot and killed there last year. Brenda Ortiz, as special administrator of the estate of Jesus Ortiz-Flores, and Luis F. Ortiz filed a lawsuit Aug. 15 in Madison County Circuit Court against La Mexicana Inc., also known as La Mexicana Restaurant Inc., Orlando Gudino, Berzain Gudino and Oscar Guidno. Choteau Properties Inc. is also listed as a defendant.

The 37-page lawsuit stems from a shooting that happened at La Mexicana on Chouteau Trace Parkway in Pontoon Beach on August 19, 2011, the suit states. According to statements made by police to media immediately following the incident, Jesus Ortiz-Flores, 20, was shot once in the head in the parking lot of the La Mexicaca restaurant and died immediately. Plaintiff Luis Ortiz, who was 18 at the time, was allegedly shot multiple times during the incident but survived.

Brenda Ortiz and Luis Ortiz accuse La Mexicana restauraunt, the owners and managers and Choteau Properties, the owner of the building, of directly contributing to the shootings. The Ortizes contend the restaurant served alcohol to the alleged shooter, Fernando Gallegos, 17, allowing him to become intoxicated and then attack Ortiz-Flores, causing his death. They say the defendants’ actions constitute a violation of the Illinois Dram Shop Act.

For more:  http://www.madisonrecord.com/news/246266-la-mexicana-restaurant-in-pontoon-beach-sued-over-shooting-death

Comments Off on Hospitality Industry Legal Risks: Wisconsin Restaurant Owners Sued For $550,000 For "Negligence" In Alcohol-Related Shooting Death Of Patron

Filed under Crime, Injuries, Insurance, Liability, Management And Ownership

Tagged as , , , , ,

by | August 21, 2012 · 6:12 am

Hospitality Industry Legal Risks: Illinois Hotel Sued For "Failing To Recognize Signs Of, Inspect And Exterminate Bed Bugs In Guest Rooms"

“…(the lawsuit) is against…Marriott and the former Hickory Ridge Marriott Conference Hotel for failing to provide guests with a sanitary rooms, failing to inspect and exterminate rooms and failing to recognize signs of bed bug attacks, among other claims…”

Two women filed a lawsuit Monday in Cook County Circuit Court againstMarriott International Inc.and a now-closed Lisle Marriott Conference Center after claiming they and their respective children received numerous bed bug bites while staying at the hotel last August. April, Safford and the two children stayed at the suburban hotel from Aug. 6 to Aug. 15, 2011, according to the lawsuit.

During her stay at the hotel, April noticed bumps and bites all over her child’s “arms, hands, back, legs and scalp” while helping him get dressed, according to the lawsuit. She brought this to the attention of the manager, who asked if April had made a request for clean sheets, the lawsuit says.

The two women and both children were diagnosed as having “numerous bed bug bites from a significant infestation,” according to the lawsuit.

For more:  http://www.chicagotribune.com/news/local/suburbs/lisle/chi-women-sue-hotel-chain-over-bed-bug-bites-20120820,0,3322080.story

4 Comments

Filed under Guest Issues, Health, Liability, Maintenance, Management And Ownership, Training

Tagged as , , , , , ,

by | August 17, 2012 · 6:48 am

Hospitality Industry Legal Risks: California Hotel Owner Found Guilty Of Violating "Unruh Civil Rights Act" For Discrimination Against Religious Group; $1.2 Million Statutory Damages And $440,000 In Punitive Damages Awarded By Jury To Plaintiffs

“…The jury decided on Wednesday that the hotel and Adaya violated California’s Unruh Civil Rights Act, which bars hotels and other business from discriminating on the basis of sex, race, color or religion…the hotel and owner were also ordered to pay approximately $440,000 in additional punitive damages to the plaintiffs…”

A Muslim hotel owner discriminated against a Jewish group during a Southern California poolside charity event by ordering removal of banners and ousting them from the pool and spa, a jury decided in awarding $1.2 million statutory damages. The suit was filed by Friends of the Israel Defense Forces, whose members had gathered two years ago at Santa Monica’s ocean-view Hotel Shangri-LA, which is owned by Tehmina Adaya. The owner is a Muslim of Pakistani descent.

The event was organized by Platinum Events, a marketing firm that had organized other gatherings at the Shangri-La after a $30-million renovation three years ago.

Workers and security guards at the Art Deco hotel were acting on Adaya’s orders when they told members of the group to get out of the pool and spa and remove banners and literature, according to trial testimony.

In her testimony, Adaya denied ordering a halt to the event for fear that her family would cut off her financing. Adaya inherited control of the hotel from her father, Ahmad Adaya, a real estate tycoon and philanthropist who died in 2006.

For more:  http://www.jewishjournal.com/thenon-prophet/item/additional_440000_in_punitive_damages_imposed_on_hotel_shangri-la_20120816/

Comments Off on Hospitality Industry Legal Risks: California Hotel Owner Found Guilty Of Violating "Unruh Civil Rights Act" For Discrimination Against Religious Group; $1.2 Million Statutory Damages And $440,000 In Punitive Damages Awarded By Jury To Plaintiffs

Filed under Claims, Insurance, Liability, Management And Ownership, Risk Management, Training

Tagged as , , , , ,