The hotel industry fosters opportunities for entrepreneurs across the country to open hotels through the franchise model. For more than 30 years, one of the cornerstones of labor law was the joint employer standard, which protected small businesses from undue liability involving employees over whom they do not have direct control.

In the 2015 Browning-Ferris (BFI) decision, the National Labor Relations Board (NLRB) reversed more than three decades of labor law when they redefined what it means to be a joint employer. The BFI standard makes businesses potentially liable for the actions of employees over whom they have no direct or immediate control. This creates uncertainty for employers and hurts franchisors and franchisees alike.


AHLA Position

We support rulemaking efforts by the NLRB and U.S. Department of Labor to bring clarity back to the joint employer standard.

We also urge Congress to pass commonsense legislation to reinstate the original definition of joint employer and provide clarity and certainty to the business community.

Key Stats

  • In the United States, 61 percent of hotels -- more than 33,000 properties -- are considered small businesses.
  • The hotel industry is responsible for supporting 8 million jobs, 4.5 million direct impact jobs.
  • More than 188,000 new hotel jobs have been added to the industry in the past five years.
  • The hotel industry supports $355 billion in total labor income.
  • The hotel industry has increased wage and salary income by $18.5 billion since 2005, paying employees $75 billion in 2015.

Expanding the joint employer status would collapse the franchising model and extinguish aspirations of business ownership.

Talking Points

Members only resource offering high level bullet points on the key issues affecting our industry today.

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