AH February 2024
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8 ASIAN HOSPITALITY FEBRUARY 2024
he U.S. House of Representatives
recently passed a Congressional
Review Act resolution to overturn
the National Labor Relations Board’s
October ruling on its definition of
joint-employer status. The American
Hotel & Lodging Association welcomed
the resolution, but President Biden has
promised to veto it.
The NLRB ruling, issued Oct. 26
and due to take effect Feb. 26, defines
a joint employer to be any company
that shares or codetermines one or
more essential terms and conditions
of employment. Those include ages,
benefits, and other compensation;
hours of work and scheduling; the
assignment and supervision of duties to
be performed; work rules and tenure of
employment.
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. House Joint
Resolution 98 would nullify the NLRB’s
rule.
A threat to the franchise
model
AHLA and others in November filed
a lawsuit in the U.S. District Court for
the Eastern District of Texas against
the NLRB and Biden administration to
stop implementation of the rule. The
association welcomed the House bill in
a statement that called the new NTSB
rule “dangerous.”
“Today’s House vote is a victory for
common sense. Neither companies
nor their employees want this job-
killing regulation, which will destroy
the franchise model that supports
millions of small business jobs,” said
Chip Rogers, AHLA president and
CEO. “The bipartisan nature of this
vote underscores how destructive this
misguided Biden administration rule
would be to our fragile economy, and
we thank Dr. Foxx, Rep. James, and
Speaker Johnson for making this a
priority. We urge the Senate to stand
up for America’s workers and pass this
resolution as soon as soon as possible.”
In its statement, AHLA claims the
NLRB’s joint-employer regulation is
meant to increase unionization.
“The regulation makes it easier for
the NLRB to declare joint employment
status in business relationships, such
as franchising, and it will enable
unions to organize by company rather
than property by property,” AHLA
said. “Joint employer will take a
wrecking ball to the franchise model
by classifying franchisors as a joint
employer of a franchisee’s staff, even
if the franchisor has no direct control
over workplace rules and conditions.”
The federal Congressional Review
Act allows Congress to repeal agency
rules within 60 days of their adoption,
according to Reuters. According to
the article, the resolution only needs
the support of a majority in the House
and Senate to pass, but would require
a two-thirds majority to overcome a
Biden veto.
The White House Office of
Management and Budget told Reuters
that the proposed bill would interfere
with workers' rights to bargain for
better working conditions.
"Reversing this rulemaking will
prevent workers from exercising their
right to bargain for higher wages,
better benefits, and safer working
conditions," the OMB said. "Too often,
companies deny workers this right by
hiding behind subcontractors, staffing
agencies, and temporary agencies."
House passes resolution to overturn
NLRB’s joint-employer rule
AHLA says the rule threatens the hotel franchise model, Biden administration threatens
to veto the resolution
The U.S. House of Representatives recently passed a resolution to overturn the National Labor
Relations Board’s October ruling on its definition of joint-employer status. The American Hotel &
Lodging Association welcomed the resolution, saying the NLRB rule threatens the franchise business
model and forces unionization, while President Biden has promised to veto it.
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