New Joint Employer Rule Raises Concern for Hotel Industry
The National Labor Relations Board has just released its final rule on the joint employer standard. The AHLA is strongly opposed to the regulation predicting that it will create new liability for hoteliers and potentially invalidate existing franchise agreements. They have also expressed concern that it will cause businesses to reevaluate relationships and marginalize franchisees’ control over their own operations. Another concern is that it may lead to fewer opportunities for small business owners to enter the market by causing consolidation in an effort to mitigate risk.
The rule classifies one as a “joint employer” if you:
Possess the authority to control one or more essential terms and conditions of employment. This is sufficient to establish status your status as a joint employer, regardless of whether control is exercised.
Exercise the power to control indirectly (including through an intermediary) one or more essential terms and conditions of employment. This is sufficient to establish your status as a joint employer, regardless of whether the power is exercised directly.
Not only is this predicted to be detrimental to the franchise model but it will likely muddy the waters for business relationships across the entire industry.
The effective date of the new rule is December 26, 2023, and the new standard will only be applied to cases filed after the effective date.
The NLRB also provided a fact sheet here. The AHLA response can be found here.
Join Us for the Final IHLA Member Coffee of 2023
NOVEMBER 8th
9:00 AM to 10:30 AM
Holiday Inn & Conference Center
7400 Hudson Rd, Cedar Falls
Guest Speaker:
Jessica Dunker, President & CEO
Iowa Hotel & Lodging Association
Connect with other operators each month at the IHLA’s member coffee meeting. Each month has a featured presenter as well as association updates and plenty of discussion and networking time. This is your opportunity to learn more about the Association's upcoming legislative session and meet some of our allied members as well.
Last week the IHLA asked members to choose their top legislative concern. It would appear our tentative legislative agenda is hitting the mark as all four were important to members.
Poll Question: What is the most important state legislative issue to you and your business?
Join us on for the IHLA Day at the State Capitol! We will host legislators that evening at a reception which is also open to all members.
Welcome New Allied Member Genesis Linen Services
Genesis Linen Services (“GLS”) offers state-of-the-art commercial laundry services in the greater Des Moines area. GLS works with some of the largest hospitality groups, offering both rental and own your goods (COG) programs that are cost effective, reduce labor, simplify operations, eliminate machine investment and maintenance, reduce utility costs and extend linen life. Learn more at: https://genlaundry.com/
Allied members are businesses that support the industry and Association as members, sponsors, and partners. Please consider working with the businesses who support your professional association. A full list can be found here.
If you appreciate this information, please consider joining.
These efforts are funded by our membership. Learn more about membership here.
