House votes to repeal job-killing joint-employer rule, AHLA applauds move for economic growth

Saturday, January 13, 2024

Chip Rogers, the President & CEO of the American Hotel & Lodging Association (AHLA), issued the following statement today in response to the U.S. House of Representatives’ approval of a Congressional Review Act resolution aimed at overturning the National Labor Relations Board’s (NLRB) contentious joint-employer regulation.

The positive vote in the House today signifies a victory for pragmatism. Both businesses and their employees reject this detrimental regulation, which poses a threat to the franchise model crucial for sustaining numerous small business jobs,” remarked AHLA President & CEO Chip Rogers. “The bipartisan support for this vote underscores the potential harm of the misguided Biden Administration rule to our delicate economy, and we express gratitude to Dr. Foxx, Rep. James, and Speaker Johnson for prioritizing this issue. We call upon the Senate to champion American workers and swiftly pass this resolution.”

Background:

In October, the NLRB introduced a final regulation that unreasonably broadens the “joint-employer standard” under the National Labor Relations Act, slated to become effective on February 26.

AHLA is actively opposing this unwarranted assault on the hotel industry and has initiated a lawsuit in the U.S. District Court for the Eastern District of Texas challenging the legality of the joint employer status.

The NLRB’s joint-employer regulation primarily aims to pressure businesses into negotiation with workers they do not directly employ, fostering increased unionization.

The regulation simplifies the process for the NLRB to designate joint employment status in various business relationships, including franchising, thereby allowing unions to organize on a company-wide basis rather than property by property.

The joint employer classification threatens the franchise model by deeming franchisors joint employers of a franchisee’s staff, even when the franchisor lacks direct control over workplace rules and conditions.

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