WASHINGTON (Jan. 12, 2024) – American Hotel & Lodging Association President & CEO Chip Rogers released the below statement today after the U.S. House of Representatives passed a Congressional Review Act resolution to overturn the National Labor Relations Board’s (NLRB) dangerous joint-employer regulation.

“Today’s House vote is a victory for common sense. Neither companies nor their employees want this job-killing regulation, which will destroy the franchise model that supports millions of small business jobs,” said AHLA President & CEO Chip Rogers. “The bipartisan nature of this vote underscores how destructive this misguided Biden Administration rule would be to our fragile economy, and we thank Dr. Foxx, Rep. James, and Speaker Johnson for making this a priority. We urge the Senate to stand up for America’s workers and pass this resolution as soon as soon as possible.”

Background

In October, the NLRB released a final regulation unjustifiably expanding the “joint-employer standard” under the National Labor Relations Act. It is scheduled to take effect on February 26.

AHLA is fighting to save hoteliers from this misguided attack on our industry and has filed a lawsuit in the U.S. District Court for the Eastern District of Texas challenging joint employer’s legality.

The NLRB’s joint-employer regulation is all about coercing businesses to the bargaining table with workers they do not actually employ to increase unionization.

The regulation makes it easier for the NLRB to declare joint employment status in business relationships, such as franchising, and it will enable unions to organize by company rather than property by property.

Joint employer will take a wrecking ball to the franchise model by classifying franchisors as a joint employer of a franchisee’s staff, even if the franchisor has no direct control over workplace rules and conditions.