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AH_224_Dec-Jan-2024

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News

News

www.asianhospitality.com

DECEMBER/JANUARY 2024 ASIAN HOSPITALITY

orces are aligning to push back

against the National Labor

Relations Board’s recently issued

final ruling on the definition of joint-

employer status. The American Hotel

& Lodging Association has filed a

lawsuit against President Biden’s

administration to reverse the ruling and

a bipartisan group of House and Senate

lawmakers have proposed a resolution

to overturn it.

Opponents to the ruling, issued Oct.

26, say it could damage the current

franchise business model. The new

standard defines a joint employer

to be any company that shares or

codetermines one or more essential

terms and conditions of employment.

Those include:

Wages, benefits, and other

compensation.

Hours of work and scheduling.

The assignment of duties to be

performed.

The supervision of the performance of

duties.

Work rules and directions governing

the manner, means, and methods of the

performance of duties and the grounds

for discipline.

The tenure of employment, including

hiring and discharge.

Working conditions related to the

safety and health of employees.

The final rule rescinds the 2020 rule

that was promulgated by the prior

board and applies the new definition

of joint employer to any entity that

can control the essential terms of

employment whether or not such

control is exercised and without regard

to whether any such exercise of control

is direct or indirect.

Taking it to court

In November, AHLA along with the

U.S. Chamber of Commerce and other

plaintiffs filed a lawsuit in the U.S.

District Court for the Eastern District

of Texas challenging the legality of the

NLRB definition of joint-employer.

The change will make hotel

franchisers, who traditionally have

no control over their franchisees’

employees, liable for workplace policies,

AHLA said in a statement, and would

force unions on hotel franchisees and

their employees.

“The NLRB’s joint-employer regulation

is all about coercing businesses to the

bargaining table with workers they

do not actually employ to increase

unionization. To achieve this, the NLRB

is intentionally taking a wrecking ball to

one of America’s great economic engines

– the franchise model – and jeopardizing

millions of small-business jobs,” said

Chip Rogers, AHLA president and CEO.

“The goal of this lawsuit is to reestablish

the rule of law that has governed joint-

employment designation for nearly

four decades. It will also prevent the

destruction of the franchise business

model that has provided prosperity for

tens of thousands of American small

business hoteliers.”

The legislative approach

AHLA also supports a Congressional

Review Act resolution introduced in

Congress by several, mostly Republican

representatives and Senators in the

House Education and the Workforce

Committee opposing the NLRb ruling.

The resolution’s sponsors say the new

joint-employer definition is a threat to

small businesses, including hotels.

“The franchise system has been a

vital driver of entrepreneurship and

economic growth across the country,

however, the Biden Administration

has once again failed to prioritize

America’s best interests by inflicting

more regulations and red tape on our

small businesses,” said Sen. Joe Manchin

of West Virginia, the only Democrat

among the resolution’s sponsors. “I urge

my colleagues on both sides of the aisle

to join this commonsense resolution to

remove this impediment to the American

Dream.”

The resolution’s other co-sponsors are

Reps. John James of Michigan; Virginia

Foxx of North Carlina who chairs the

committee; and recently elected Speaker

of the House Mike Johnson of Louisiana.

Sponsors on the Senate side along with

Manchin include Sens. Bill Cassidy

of Louisiana and Mitch McConnell of

Kentucky, Senate minority leader.

AHLA’s Rogers issued a separate

statement supporting the resolution.

“AHLA welcomes this Congressional

Review Act resolution to overturn the

NLRB’s disastrous joint-employer rule,”

Rogers said. “The NLRB is intentionally

taking a wrecking ball to one of

America’s great economic engines – the

franchise model – and jeopardizing

millions of small business jobs.”

AHLA, others sue Biden administration

over NLRB joint-employer definition

Also, a group of mostly Republican Congress members have introduced a resolution to

overturn the recent ruling

The American Hotel &

Lodging Association

has filed a lawsuit

against President

Biden’s administration

to reverse the National

Labor Relations Board’s

recently issued final

ruling on the definition

of joint-employer status.

Also, a group of House

and Senate lawmakers

have proposed a

resolution to overturn it.

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