WASHINGTON (May 3, 2024) – American Hotel & Lodging Association (AHLA) Interim President & CEO Kevin Carey released the following statement after President Biden vetoed legislation that would have overturned the National Labor Relations Board’s (NLRB) dangerous joint-employer rule:

“We’re disappointed the president vetoed this bill and ignored the serious concerns of AHLA’s 30,000-plus members, the courts, and Democrats and Republicans in Congress,” said AHLA Interim President & CEO Kevin Carey. “Thankfully, a federal court has already intervened and is blocking the administration from implementing its job-killing joint-employer rule following a lawsuit from AHLA and other business groups. We stand ready to fight any attempt by the NLRB to appeal the court’s decision.”

Background

In October 2023, the NLRB released a final rule that would have changed the standard the federal government uses to determine when two or more employers are jointly responsible for a shared group of workers’ terms and conditions of employment. The rule would have made it easier for the NLRB to declare joint employment status in business relationships, and enabled unions to organize by company rather than property by property.

The rule was designed to force franchisors to the negotiating table with workers they do not actually employ to increase unionization. It would have complicated relationships between hotel owners, brands, and employees, and would have limited opportunities for franchisees and workers along the way.

After AHLA and other business groups filed a lawsuit in the U.S. District Court for the Eastern District of Texas challenging joint-employer’s legality, the court blocked the NLRB from implementing the rule. In its March 8 decision, the court also reinstated a 2020 NLRB standard that protects businesses from undue liability for employees over whom they do not have direct control.

On Jan. 12, the House passed a Congressional Review Act resolution to overturn the rule. On April 10, the Senate passed the same resolution. Had it been signed by the president, the resolution would have eliminated the need for ongoing litigation.