Usually in this column I review a single case that is influential in hotel operations, but variety is the spice of life! So, in this article I will discuss several cases, less in depth, but each instructive in the field of hotel management.
In one case1, a hotel suffered substantial damage during a rainstorm, including large portions of tiled flooring. Replacement tiles of the same pattern were not available. Thus, if replacement was limited to the damaged tiles, the before and after tiles would be mismatched and, as argued by the hotel, unsightly. The insurance company denied coveragey for “aesthetic uniformity.” The hotel sued and the court determined the relevant contract language was ambiguous and referred the matter to a trial. The lesson: When buying insurance, consider whether your facility has interlocking tiles and/or carpet squares. If so, you are well advised to address with your insurance agent coverage of aesthetic uniformity.
Overtime pay for on-call employees was the issue in another case2. An Overnight Guest Services Representative regularly worked an evening shift for which she was paid hourly. Her work hours were followed by an 8-hour on-call period for which she was paid only if she was called into work. She sued claiming entitlement to overtime pay, per the Fair Labor Standards Act (FLSA), for the time she was on-call. The court held that on-call time during which the employee was not actively assisting guests was not compensable work. Thus, her case was dismissed.
In numerous other cases3 employees continue to sue over allegations of unpaid overtime, unpaid minimum wage, participation by managers in tip pools, failure to give employees necessary notices of rates of pay and retaliation for filing complaints relating to pay issues. In one case the hospitality facility defended on the ground it had hired a general manager with a hotel and restaurant management degree and relied on him to know what was required. The court rejected that defense saying such reliance was misplaced. The lesson: Consult a lawyer or human resource specialist to be sure you are complying with the many requirements of the FLSA.
In a pool accident4, a daring hotel guest broke her ankle when she cannonballed into the hotel pool which was only three feet deep. Turns out the hotel had displayed 14 signs alerting guests to the limited pool depth. The guest sued and the court dismissed the case, noting that guests must exercise ordinary care for their own safety. The multiple signs saved the day. The lesson: Prominently alert guests to unusual circumstances. Although 14 is more than necessary, to avoid liability, don’t shun redundancy—it can save your facility from liability.
An in-room refrigerator was the focus of another case. The plaintiff was injured when the door somehow disattached and apparently caused a head injury. The plaintiff was unable to prove negligence by the hotel and so the lawsuit was dismissed. However, the case is a good reminder that hinges on refrigerator doors should periodically be checked to ensure they are sufficiently secure.
Bottom line of all these cases: Managing a hotel takes diligence and vigilance!
- Bre Hotels & Resorts, LLC v. Ace American Insurance Co., 2024 WL 4145665 (D. HI, 2024).
- Sharbaro v. Choice Hotels International, Inc., et al, 2024 WL 4309992 (S.D. TX, 2024).
- See, for example, Spears v. Bay Inn & Suites Foley, LLC, 105 F.4th 1315 (11th Cir., 2024); Hoffman v. Bear Chase Brewing Co., LLC., 2024WL 1472793 (E.D.VA, 2024).
- Joyner v. Drury Hotels Co., LLC, 2024 WL 3569980 (N.D. GA, 2024).
This article was originally published in the June edition of Hotel Management magazine. Subscribe here.