Tag Archives: Lawsuits

by | March 31, 2012 · 9:12 am

Hospitality Industry Legal Risks: Wisconsin Restaurant Sued By EEOC For "Racial Discrimination" And "Wrongful Termination"

“..(the restaurant management) made a bad situation worse by firing the man who had the guts to stand up to it…the EEOC will stand up for people (like this employee)…”

“…the EEOC is seeking back pay, job reinstatement, compensatory and punitive damages…”

A restaurant in Menomonie, Wis., is being sued by the federal government because its managers posted images of a noose, a Klan hood and other racist depictions that prompted a black employee to complain and then be fired. The U.S. Equal Employment Opportunity Commission (EEOC) lawsuit, filed Tuesday against the owners of Sparx Restaurant & Bar, alleges that Dion Miller was fired in retaliation for complaining about the racist atmosphere that the images conveyed.

According to the suit:

Miller arrived for a regular shift and found taped to the cooler a picture of black actor Gary Coleman and a dollar bill that was defaced with a noose around the neck of a black-faced George Washington. Also on the dollar bill were swastikas and the image of a man in a Ku Klux Klan hood.

Sparx’s managers told Miller that they had posted the images the evening before and insisted that it was just “a joke.”

Miller was fired within weeks of complaining for allegedly having “a bad attitude.”

The suit was filed after an attempt at a settlement with the restaurant’s owner, Northern Star Hospitality Inc., failed.

“Sparx bills itself as a ‘family restaurant’ even as its managers posted imagery which evokes shameful memories of racially motivated physical attacks and lynchings,” John Hendrickson, regional attorney for the Chicago district of the EEOC, said in a statement Wednesday announcing the lawsuit.

For more:  http://www.startribune.com/local/144690225.html

4 Comments

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

Tagged as , , , , , ,

by | · 9:12 am

Hospitality Industry Legal Risks: Wisconsin Restaurant Sued By EEOC For "Racial Discrimination" And "Wrongful Termination"

“..(the restaurant management) made a bad situation worse by firing the man who had the guts to stand up to it…the EEOC will stand up for people (like this employee)…”

“…the EEOC is seeking back pay, job reinstatement, compensatory and punitive damages…”

A restaurant in Menomonie, Wis., is being sued by the federal government because its managers posted images of a noose, a Klan hood and other racist depictions that prompted a black employee to complain and then be fired. The U.S. Equal Employment Opportunity Commission (EEOC) lawsuit, filed Tuesday against the owners of Sparx Restaurant & Bar, alleges that Dion Miller was fired in retaliation for complaining about the racist atmosphere that the images conveyed.

According to the suit:

Miller arrived for a regular shift and found taped to the cooler a picture of black actor Gary Coleman and a dollar bill that was defaced with a noose around the neck of a black-faced George Washington. Also on the dollar bill were swastikas and the image of a man in a Ku Klux Klan hood.

Sparx’s managers told Miller that they had posted the images the evening before and insisted that it was just “a joke.”

Miller was fired within weeks of complaining for allegedly having “a bad attitude.”

The suit was filed after an attempt at a settlement with the restaurant’s owner, Northern Star Hospitality Inc., failed.

“Sparx bills itself as a ‘family restaurant’ even as its managers posted imagery which evokes shameful memories of racially motivated physical attacks and lynchings,” John Hendrickson, regional attorney for the Chicago district of the EEOC, said in a statement Wednesday announcing the lawsuit.

For more:  http://www.startribune.com/local/144690225.html

4 Comments

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

Tagged as , , , , , ,

by | March 24, 2012 · 7:41 am

Hospitality Industry Legal Risks: Arizona Restaurant Chain Found Guilty Of "Pregnancy Discrimination" In Suit Brought By EEOC

“The EEOC would like to remind employers that pregnancy discrimination has been illegal for decades, and violations of the law will be met with rigorous enforcement by our agency.”

 The manager admitted in sworn testimony that he had made that statement, having been told by a company official that he could not hire pregnant women.

An Arizona federal jury returned a verdict against High Speed Enterprise, Inc., a corporation that owns five Phoenix-area Subway restaurants. The jury awarded damages to Belinda Murillo, a job applicant who claimed she was refused a position solely because she was pregnant. The suit was brought by the U.S. Equal Employment Opportunity Commission (EEOC).

According to the lawsuit, EEOC v. High Speed Enterprise, Inc. dba Subway, Murillo applied for a job at a central Phoenix Subway in May 2006. Later that month she met with the general manager who asked if she was pregnant. She said yes.

EEOC says that the manager told the applicant, “We can’t hire you because you’re pregnant.” She also reminded pregnant women that it is against the law for employers to fire them or treat them differently because they are expecting.

For more:  http://safety.blr.com/workplace-safety-news/safety-administration/Disabilities-ADA/Jury-Decides-Against-Restaurant-Owner-in-Discrimin/

Comments Off on Hospitality Industry Legal Risks: Arizona Restaurant Chain Found Guilty Of "Pregnancy Discrimination" In Suit Brought By EEOC

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

Tagged as , , , ,

by | March 18, 2012 · 7:56 am

Hospitality Industry Employment Risks: Hotel Management Must Use Consistent Hiring And Firing Procedures To Prevent "Age Discriminiation Lawsuits"

  • Initial screening: Make sure those responsible for selecting interview candidates don’t have access to information about applicants’ race, age, sex or other protected characteristics. That alone will prevent many failure-to-hire claims. HR should take the lead and prepare applicant summaries for hiring managers to screen that contain no tell-tale information about protected characteristics. That may mean even excising names, using a candidate number instead.
  • Who hires and fires: The same individual responsible for the final decision to hire an applicant should also make the decision to fire that individual if necessary. This helps dispel the notion that a protected characteristic like race or age had anything to do with the decision. After all, why would someone hire an applicant who belongs to a protected class then turn around and fire the same person because of her race, sex, age, etc.?
  • Training: Track training to make sure each employee has the opportunity to improve job performance. Note any training offers and the employee’s response.
  • Informal audit: Review your labor pool regularly. Look for patterns that may indicate hiring bias. For example, are all employees in a particular job under age 40? If so, find out why.

For more:  http://www.businessmanagementdaily.com/29524/use-consistent-hiring-firing-processes-to-knock-down-age-discrimination-claims

Comments Off on Hospitality Industry Employment Risks: Hotel Management Must Use Consistent Hiring And Firing Procedures To Prevent "Age Discriminiation Lawsuits"

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

Tagged as , ,

by | March 15, 2012 · 8:23 am

Hospitality Industry Legal Risks: California Hotel Owners Compliance With Americans With Disabilities Act (ADA) "Pool Lift Regulations" Is Effective March 15; Vulnerable To "Unruh Civil Rights Act" Violation Lawsuits

“…California-based businesses should be particularly worried.  The Unruh Civil Rights Act, itself a wellspring for abusive litigation, incorporates the ADA by reference, making any violation of the ADA also a violation of Unruh…Unruh has more teeth than the ADA—$4,000 per violation, regardless of intent, plus attorney’s fees…”

 The Department of Justice granted the industry’s call for a clarification: But it was not the answer they wanted. All 300,000 public pools in the United States must install a permanent fixed lift. The deadline for compliance is tomorrow, March 15. Call it “Poolmageddon.”

There is no way all 300,000 pools can install permanent lifts by Thursday. There simply are not enough lifts in existence or enough people who know how to install them, according to industry spokesmen. Plus, each lift costs between $3,000 and $10,000 and installation can add $5,000 to $10,000 to the total.

The Administration has assured the industry that it does not plan to enforce the new guidelines right away.  But the ADA contains a private enforcement mechanism, empowering private attorneys to bring suit immediately, collecting attorney’s fees from violators.  As the article mentions, trial lawyers contributed over $45 million to Obama’s campaign.

For more:  http://ordinary-gentlemen.com/timkowal/2012/03/15/new-ada-guidelines-expose-pool-operators-to-private-lawsuits/

Comments Off on Hospitality Industry Legal Risks: California Hotel Owners Compliance With Americans With Disabilities Act (ADA) "Pool Lift Regulations" Is Effective March 15; Vulnerable To "Unruh Civil Rights Act" Violation Lawsuits

Filed under Labor Issues, Legislation, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management, Training

Tagged as , , , , ,

by | March 13, 2012 · 9:18 am

Hospitality Industry Legal Risks: Hotel Management Must Comply With Americans With Disabilities Act (ADA) Revisions Concerning Recreational Areas; Exercise Rooms, Saunas And Benches Are Areas Of Concern

New revisions to the Americans with Disabilities Act are bringing hotel recreational areas under the watchful eye of the U.S. Department of Justice for the first time. And unlike other guidelines covered by the 1991 ADA Standards for Accessible Design, recreation areas do not qualify for safe harbor.

Exercise rooms:

  •  The key issue in exercise rooms is clearance space, the moderators said.
  • “At least one of each type of equipment is required to be on an accessible route and have clear floor space adjacent to the equipment so that somebody is able to park their mobility device there and then get out of that device and transfer or may be able to walk and get on to this piece of equipment,” Salmen said.
  • More than one piece of equipment can share the same clear floor space, he said.
  • “This is going to have implications on how your fitness rooms are laid out, and (in) a lot of small fitness rooms you will have to do rearranging or potentially may even have to lose a piece of equipment in order to try to provide these clear floor areas,” Anderson added.

Saunas and steam rooms:

  •  Hotels must have accessible routes into saunas and steam rooms. Further, they must have enough space within the rooms so guests with disabilities can turn around and get out, Salmen said.
  • “So doors have to be compliant as per the door criteria with 32 inches of minimum clear opening width. The pressure on that door can’t be more than five pounds. The thresholds for those doors have to be compliant,” he said.

Benches:

  •  Benches in hotel locker rooms and steam rooms can be as little as 42 inches with a depth of 20 inches to 24 inches, Salmen said.
  • “But in these new rules we are now required to have a maneuvering space in front of the bench and at one end of the bench so that it is (easier to slide over) from the wheelchair seat onto the seat of the bench,” he said.
  • Benches must be attached to a wall or provide a back rest so users will have something to lean against, Salmen added.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7732/ADA-standards-call-recreation-areas-into-focus

Comments Off on Hospitality Industry Legal Risks: Hotel Management Must Comply With Americans With Disabilities Act (ADA) Revisions Concerning Recreational Areas; Exercise Rooms, Saunas And Benches Are Areas Of Concern

Filed under Guest Issues, Insurance, Legislation, Liability, Maintenance, Management And Ownership, Pool And Spa, Risk Management, Training

Tagged as , , , ,

by | March 12, 2012 · 7:32 am

Hospitality Industry Legal Risks: Washington Hotel And Restaurant Sued By Fired Waiter For "Discrimination, Disparate Treatment And Infliction Of Emotional Distress"

“…He contends Matt Stickle, executive chef of the hotel’s Bite restaurant, belittled him in front of customers and co-workers and that the Murano’s managers did nothing to rectify the situation when he complained. Conteh, who immigrated to the United States from Africa, contends he was treated hurtfully and unfairly because he’s black…”

A Pierce County man is suing Tacoma’s Hotel Murano and the executive chef of its high-end restaurant, contending they discriminated against him when he worked there as a waiter. Muhammed Conteh filed his lawsuit last week in Pierce County Superior Court. Conteh seeks unspecified damages for discrimination, disparate treatment and the infliction of emotional distress.

Conteh contends, among other things, that Stickle “continuously harassed plaintiff about his personal smell and would physically smell the plaintiff and embarrass him in front of customers,” according to the suit.

Conteh said he also was punished for using the kitchen telephone and engaging in horseplay with colleagues. White co-workers who engaged in similar behavior were not disciplined, he contends.

Conteh was fired in January after working at the restaurant for eight years. He has been unemployed since, said his lawyer, Thaddeus Martin.

Comments Off on Hospitality Industry Legal Risks: Washington Hotel And Restaurant Sued By Fired Waiter For "Discrimination, Disparate Treatment And Infliction Of Emotional Distress"

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

Tagged as , , , , ,

by | March 7, 2012 · 1:46 am

Hospitality Industry Employment Risks: Hotel Management Compliance Audits Can Expose Potential Labor Department "Wage And Hour Division" Violations

• Make sure nonexempt employees are paid the required minimum wage. The current federal rate is $7.25 per hour (some jurisdictions require a higher rate).  Review deductions to ensure that they do not cut employees’ pay below the minimum wage.
• Be certain nonexempt employees are paid the required overtime. Ensure that all bonuses, shift differentials, service charges and other payments are properly included in computing overtime and that deductions do not improperly cut into overtime pay. 
• Pay special attention to whether nonexempt employees accurately record all worktime. Nonexempt employees must record pre- and post-shift work; shift-change overlap; opening or closing activities; compensable training time, meeting time, “on-call” work; and time spent doing work at home. Employees must record meal time and other non-compensable break time, and they must be paid when they do not take that time off. 
• Be sure that all “exempt” employees meet the requirements for exemption. Review the criteria defining who may be treated as exempt from the Fair Labor Standard Act’s minimum-wage and/or overtime requirements. “Salaried” employees are not necessarily exempt. Certain positions such as sous chefs and sales managers are vulnerable to challenge. 
• Make certain that exempt employees are paid on a salary basis. The most common FLSA exemptions require that such employees be paid on a “salary basis” and thus receive a fixed, predetermined amount for every workweek in which the employee performs any work, without regard to the number of days or hours worked or the quality of work. Salary deductions are very limited. 
• Strictly comply with child-labor restrictions. There is an age 16 limit for general occupations and an age 18 limit for occupations declared “hazardous” by the U.S. Secretary of Labor. 14 and 15 year olds may be employed in limited occupations, within strict hours and times of day limitations. Identify every employee who is 16 or 17, verify his or her age and exact duties. Identify every employee under 16, verify his or her age, exact duties and hours and times of work.
• Comply with all state and local wage-hour requirements. The FLSA does not preempt tougher state or local provisions. These other laws might include a higher minimum wage; daily overtime; minimum pay for reporting to work; more rigorous child-labor limitations; prohibitions on wage deductions; and time limits for paying employees who resign or are fired.

For more:  http://www.hotelnewsnow.com/Articles.aspx/7679/Government-audits-Get-your-house-in-order

Comments Off on Hospitality Industry Employment Risks: Hotel Management Compliance Audits Can Expose Potential Labor Department "Wage And Hour Division" Violations

Filed under Labor Issues, Liability, Maintenance, Management And Ownership, Risk Management, Training

Tagged as , , , , ,

by | March 5, 2012 · 8:43 am

Hospitality Industry Legal Risks: Illinois Hotel Sued For $75,000 By Woman Claiming Bartender Drugged And Sexually Assaulted Her

“…The bartender got a key to the woman’s room from the front desk staff and sexually assaulted her as she was passed out in the room, according to the lawsuit…”

“…The suit names the hotel as the defendant, claiming the staff was negligent in allowing the bartender access to the woman’s room. The suit seeks payment in excess of $75,000 plus the cost of court fees…”

A Virginia woman filed a lawsuit against a Lisle hotel claiming a bartender drugged her drink and later sneaked into her room with the help of a front desk clerk and sexually assaulted her.

The lawsuit, which was filed in federal court Wednesday, claims a 31-year-old bartender slipped a date-rape drug into the woman’s drink while she was at the Lisle-Naperville Hilton on Oct. 27. The woman began to feel ill at around 1:30 or 2 p.m. and went up to her room before her food had arrived at the hotel bar, said her attorney Jeffrey Deutschman.

For more:  http://www.dailyherald.com/article/20120229/news/702299617/

Comments Off on Hospitality Industry Legal Risks: Illinois Hotel Sued For $75,000 By Woman Claiming Bartender Drugged And Sexually Assaulted Her

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

Tagged as , , , ,

by | March 2, 2012 · 8:03 am

Hospitality Industry Legal Risks: Florida Hotel Sued By U.S. Dept Of Labor For "Dodging Taxes By Paying Employees Entirely In Cash" And Denying Overtime

“…The U.S. Department of Labor says the Cavalier Hotel and Crab Shack on Ocean Drive owes its employees $160,000 and that owner Ralph Abravaya skirted taxes by paying his employees in tips and refusing them overtime pay…”

“…Department of Labor’s Wage and Hour Division, says a two-year investigation revealed Abravaya had dodged taxes by paying employees entirely in cash. He also underpaid them by denying them overtime when they worked more than 40 hours per week..”

An art deco hotel on South Beach is locked in a battle with the federal government over the kind of accusations that have gotten the 99 percent so riled up recently.

 “Yeah we screwed up,” Abravaya admits to Riptide. “Alright, so slap me in the hand. But don’t tell me you are going to destroy the business or fine me $300,000. If Abravaya loses in court, he will have to pay a total of $320,000 in fines and unpaid wages, plus court costs.

The hotelier admits that a manager did falsify records in an attempt to escape investigation. But Abravaya says he fired the employee as soon as he learned of the deception. He insists that when he took over the hotel and restaurant in 2009, he simply continued the policy set by the previous owner and paid the employees $6 an hour plus their tips — more than they were owed by law.

For more:  http://blogs.miaminewtimes.com/riptide/2012/03/cavalier_hotel_and_crab_shack.php

Comments Off on Hospitality Industry Legal Risks: Florida Hotel Sued By U.S. Dept Of Labor For "Dodging Taxes By Paying Employees Entirely In Cash" And Denying Overtime

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

Tagged as , , , , ,