Group items tagged

AAHOA OPPOSED THE Los Angeles City Council's recent proposal to raise hotel worker wages to $30 per hour, plus $8 for healthcare, citing a flawed economic impact study that misjudges the industry's ability to absorb the increase. AAHOA members, including a delegation of women hoteliers, testified before the council, warning of the proposal's impact on smaller, independent hotels, the association said in a statement. AAHOA Vice Chairman Kamalesh "KP" Patel, a California hotelier, testified on Oct. 16, addressing the hospitality industry's ongoing labor challenges. "I have a very serious concern about the study presentation. The study is majorly flawed," Patel said. "There is zero understanding of the differences between hotels-high-end, full-service and limited-service. These people are asking for their fair shake. We are asking to be heard properly. Limited-service properties do not offer the same services as full-service hotels and should not be treated the same." AAHOA argues that the study overlooks the unique challenges of smaller, limited-service hotels, ignoring their tight margins and operational constraints. A sudden wage increase to $30 per hour, plus healthcare costs, could result in layoffs, service cuts or closures, AAHOA said.

FORMER AAHOA CHAIRWOMAN Jagruti Panwala testified recently before Congress on the Department of Labor's proposal to raise the overtime salary exemption threshold for executive, administrative, and professional employees under the Fair Labor Standards Act. Panwala, now a board member for American Hotel & Lodging Association, argued that the proposed change would actually limit hotel employees' opportunities and does not take into account economic differences between regions of the country. In August, DOL proposed raising the threshold from $35,568 to an estimated $60,209 in 2024 according to AHLA based on the department's projections. That equals a nearly 70 percent increase, and AHLA said that means all employees making under that amount must be paid overtime for any hours worked over 40 in one week. The DOL proposal also would automatically increase the threshold every three years thereafter based on the 35th percentile of earnings for full-time salaried workers in the lowest-wage census region, currently the South.

BLACK HISTORY MONTH is a time to think about unity in general and hoteliers of all races acknowledged that this year. AAHOA observed the month, as did others in the industry through actions and testimonials. A way to engage the local community California hotelier and philanthropist Sunil "Sunny" Tolani in a recent article discussed the importance of the month to him. Tolani is CEO of the Prince Organization in Anaheim, California, and in an interview with New York Wire magazine, he discussed diversity and his company's participation in the Martin Luther King Jr. Day of Service in January. The event supports a sense of family among his employees, Tolani said. "Employees make time to volunteer and the MLK Day of Service is a great way we engage with our local community while honoring the legacy of Dr. King," Tolani said. "Whether we plan on cleaning up a public space, mentoring and providing internships to young people, mentoring our staff, inviting the local students to tour the back of house hotel operations, what they do makes a world of difference. Our entire organization felt a sense of pride at what we were able to achieve." Tolani said supporting minority rights also builds meaningful relationships within the communities in which they operate and "taps the passions of millions of guests."