On October 26, 2023 the National Labor Relations Board (NLRB) issued its final rule expanding the joint-employer standard which is used to determine when two or more employers are jointly responsible for a shared group of workers’ essential terms and conditions of employment and thus jointly liable for any labor violations under the National Labor Relations Act. This rule creates uncertainty among small and local businesses regarding their legal liabilities, leading to higher operational costs and less opportunity to create jobs.
NLRB’s actions are devastating to the hotel industry and the millions of people we employ. This is a partisan gambit to force unions on hotel franchisees and their employees as well as countless other small businesses and workers across the country. NLRB’s goal is to coerce businesses to the bargaining table with workers they do not actually employ to artificially increase unionization. This dramatic shift will effectively dismantle the franchise business model – the single greatest avenue to successful entrepreneurship in American history and a system that has helped our industry build millions of well-paying jobs and careers. AHLA is joining in opportunities to legally challenge this regulation to restore certainty for America’s lodging industry.