2Prevention Philosophy The Future Hospitality Manager and the Legal EnvironmentThe Hospitality Manager and Legal ManagementPreventative Legal ManagementEthics and the Law
3In This Chapter, You Will Learn: Why a study of laws related to hospitality is important.The historical origins of the law and its evolutionary nature.A philosophical framework to help prevent legal difficulties before they begin.How to evaluate management actions on an ethical basis.
4The Future Hospitality Manager and the Legal Environment Unique and diverse operating environmentEstimated that percent of decisions made daily has legal dimensionThose decisions influence the potential for litigation
5The Future Hospitality Manager and the Legal Environment Legalese:Attorney - Any person trained and legally authorized to act on behalf of others in matters of the law.
6The Future Hospitality Manager and the Legal Environment Legalese:Litigation - The act of initiating and carrying on a lawsuit. Often, used to refer to the lawsuit itself.
7The Hospitality Manager and Legal Management Legalese:Law - The rules of conduct and responsibility established and enforced by a society.
8The Hospitality Manager and Legal Management Know the historical origins of the law.Recognize that laws have an evolutionary nature, based on changes in society.Understand how to use a philosophy of preventative management to manage the legal environment and minimize the chances of litigation.
9Historical Origins of the Law Legalese:Common Law – Laws derived from historical customs and usage of a society, and the decisions by courts when interpreting those customs and usages.
10Historical Origins of the Law Legalese:Civil Law – The body of law (usually in the form of codes or statues) created by governmental entities that are concerned with private rights and remedies, as opposed to criminal matters.
11The Evolutionary Nature of Common Law Legalese:Hospitality Law - Those laws which relate to the industry involved with the provision of food, lodging, travel and entertainment services to its guests and clients
12Historical Origins of the Law Common lawCivil lawCriminal lawChanging societyFederal, state, and local
13Search the Web 1.1 Log on to the Internet and enter www.findlaw.com Select: U.S. State ResourcesSelect: US State CodesSelect Your State.Search for categories related to laws regulating tobacco use and sales in your state.Draft a one-paragraph essay summarizing the laws governing tobacco use in your state. Are there any special stipulations that a hospitality manager would especially want to be aware of (such as the designation of smoking and non-smoking areas in a restaurant or public lobby)?
14Preventative Legal Management STEMThe Tide of Litigation
15What Is STEM?“A process that can be implemented that will reduce employee errors and omissions - and litigation.”
16The Components of STEMSelectTrainEducateManage and Motivate
17STEM the Tide of Litigation Legalese:Liable – To be legally responsible or obligated.
18Select Select the right employee for the specific job. Cannot just hire anyone at the last minute.Cannot “just hire” anyone anymore.Use specific job qualifications, written job specifications, and information derived from a thorough investigation for all candidates.
19Applications Ask job-related and legally acceptable questions. Review the application form for obvious problems.Note any large gaps in employment, or frequent job changes.Contact the applicant immediately to answer questions.Ask the applicant to sign an authorization and release form for checking references.Don’t just hire anyone, be selective.negligent hiring
20Checking the Applicant’s Records Interview the applicant’s former manager by phone to:Check the facts on the application form.Probe for information.Ask about how the applicant interacted with other employees.Ask if the employee left on good terms and is eligible for rehire at that company.Check the applicant’s educational record, credit rating, and criminal convictions.
21Testing Applicants Hiring Tests Must be legal and valid. Must comply with Civil Rights Act of 1964 and the Americans with Disabilities Act of 1990.Must not be biased against anyone because of race, color, religion, age, sex, national origin, or disabilities.(exception: bona-fide occupation qualification).
22Train and Educate These two aspects are interrelated. Train your employees the right way to perform the task(s) the first time. It is easier to train than to retrain.Ensure that the trainer is properly trained himself/herself.Remember, it is the evidentiary trail that wins lawsuits, not who is right or wrong.
23Train and EducateEducate yourself about new trends, technological innovations, laws, and rules and regulations which impact your industry.Now you are in a better position to train your employees about important changes.You are in a better situation to compete in the industry.
24The Training Trail What was taught? Who was taught? How was the training conducted?When was the training provided?How did you determine its effectiveness?The evidentiary trail.
25Some Current Litigation Trends Negligent retentionNegligent supervisionFailure to properly train
26Positive Management and Employee Loyalty How to become a positive manager and build employee loyalty.raise employee morale and self-esteemreduce turnoverenhance serviceenhance customer satisfactionreduce litigationenhance the bottom line
27Proper Management and Motivation As a manager - Lead by example!Today’s culturally diverse workforce will require diverse motivating techniques.People are motivated by different things.Find out what it is that motivates your employees.Involve employees in the process.Ask your employees how you are doing as a manager.
28Analyze the Situation 1.1A fellow supervisor and friend confides in you that that he has been arrested a second time in two years for driving under the influence of alcohol. His current case has not yet gone to trial. This supervisor is responsible for the late-night closing of the restaurant in which you both work. You know bars in your city close at 2:00 A.M., the same time the restaurant closes.
29Analyze the Situation 1.1Should you discuss this situation with the restaurant's General Manager?Which aspect of STEM is relevant here?
30Ethics and the Law Legalese: Ethics – Choices of proper conduct made by an individual in his or her relationships with others.
31Ethical SituationAssume that you are the Food and Beverage Director of a large hotel. You are planning for your New Year’s Eve gala, and require a large amount of wine and champagne. You conduct a competitive bidding process with the purveyors in your area, and, based upon quality and price, you place a very large order (in excess of $20,000) with a single purveyor.
32Ethical SituationOne week later, you receive a case of very expensive champagne, delivered to your home with a nice note from the purveyor’s representative stating how much they appreciated the order and that they are really looking forward to doing business with you in the years ahead. What do you do with the champagne?
33Ethical Situation Ethical Analysis Your first thought may be the most obvious one; that is, you drink it. But hopefully, you will first ask yourself the seven questions of the ethical decision-making process.
34Ethical Decision-Making Process Is it legal?Does either the law or company policy prohibit this activity?Does it hurt anyone?Will this action negatively impact any stakeholders?Is it fair?To all the stakeholdersAm I being honest?With yourself, and with the companyWould I care if it happened to me?Would I publicize my action?What if all the stakeholders became aware of your action?What if everyone did it?Could the business effectively operate in an equitable fashion?
35What Would You Do?Assume that your local municipality is considering the passage of a law that would prohibit the sale of all tobacco products from the interiors of bars and restaurants, but not grocery stores. The restaurant you manage has a cocktail lounge, and cigarettes are both consumed and sold in that section of your restaurant.
36What Would You Do?There is no current effort to prohibit smoking in cocktail lounges, such as the one you operate. You are considering whether to address the local government body charged with creating such legislation:
37What Would You Do?What are the major considerations you will think about before you decide to support or oppose the proposed legislation?Will the fact that you do or do not smoke influence your position?Which ethical issues are in play here?
38Rapid ReviewPrepare a five-minute training session for your staff that emphasizes the importance of prevention, rather than reacting to, legal liability. Give an example of a situation where this might arise.Give an example, other than the one mentioned in the text, of a recent change in federal, state, or local law that has impacted the hospitality industry. Explain why you believe the law was enacted and whether you believe it was good legislation.
39Rapid ReviewGive a hospitality example of the importance that “selection” makes in the STEM process.Give a hospitality example of the importance of “teaching” in the STEM process.Give a hospitality example of the importance of “education” in the STEM process.Give a hospitality example of the importance that “managing” makes in the STEM process.
40Rapid ReviewA vendor has agreed to clean your hotel carpets at a very competitive price. In a telephone conversation with you, the vendor states that if it gets the contract, will “do your home carpets once a year” as a thank-you. Apply the seven criteria for ethical behavior to this situation.Using the World Wide Web, locate a state law of any type that relates to business operations. Use your search engine to help. Keywords to use include “state,” “laws,” and “business.” Describe the law in a one-paragraph essay.