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PROPOSED FEDERAL REGULATIONS defining a "joint-employer standard" would have a "chilling effect" on the hospitality industry and franchises in general, according to the American Hotel & Lodging Association. The National Labor Relations Board's latest version of the standard could define two companies as joint employers if they both control certain elements of employees' terms and conditions. The period for comments on the proposed regulations ended Nov. 21 and the would rescind and replace the joint-employer rule that took effect on April 27, 2020. That previous rule established that "a business must possess and exercise substantial direct and immediate control over one or more essential terms and conditions of employment of another employer's employees" to be considered a joint employer. However, a ruling by the U.S. Court of Appeals for the D.C. Circuit in July reversed that rule. Now, under the new rule, "two or more employers would be considered joint employers if they 'share or codetermine those matters governing employees' essential terms and conditions of employment,' such as wages, benefits and other compensation, work and scheduling, hiring and discharge, discipline, workplace health and safety, supervision, assignment, and work rules," according to NLRB.

THE U.S. HOUSE of Representatives recently passed a Congressional Review Act resolution to overturn the National Labor Relations Board's October ruling on its definition of joint-employer status. The American Hotel & Lodging Association welcomed the resolution, but President Biden has promised to veto it. The NLRB ruling, issued Oct. 26 and due to take effect Feb. 26, defines a joint employer to be any company that shares or codetermines one or more essential terms and conditions of employment. Those include ages, benefits, and other compensation; hours of work and scheduling; the assignment and supervision of duties to be performed; work rules and tenure of employment. The final rule rescinds the 2020 rule that was promulgated by the prior board and applies the new definition of joint employer to any entity that can control the essential terms of employment whether or not such control is exercised and without regard to whether any such exercise of control is direct or indirect. House Joint Resolution 98 would nullify the NLRB's rule.

THE U.S. SENATE voted to block the National Labor Relations Board's final definition of joint-employer status, following up on a similar bill passed by the House. President Biden is expected to veto the bill, but opponents of the NLRB joint employer rule, such as the American Hotel & Lodging Association, claim the Senate's resolution was a "win for hoteliers." After the House passed its Congressional Review Act against the NLRB rule in January, the U.S. District Court for the Eastern District of Texas also issued an order blocking the NLRB rule. AHLA supported both efforts to block the NLRB rule, calling the current joint employer definition a threat to the hotel franchise model. "Today's bipartisan Senate vote is a win for hoteliers and small business owners everywhere, and shows the rule is out of step with Congress, the courts, and America's job creators. Lawmakers from both parties in the House and Senate realize the administration's joint-employer rule would acutely suppress job creation for hoteliers and other businesses, and therefore it needs to be abandoned," said Kevin Carey, AHLA Interim president and CEO.

MORE ASSOCIATIONS ARE joining the American Hotel & Lodging Association in protesting the National Labor Relations Board's recently issued final ruling on the definition of joint-employer status. The ruling essentially broadens the definition to any "entity that has an employment relationship with the employees," and AAHOA, AHLA and the other associations say it could damage the current franchise business model. NLRB's new standard, issued last week, defines a joint employer to be any company that shares or codetermines one or more essential terms and conditions of employment. Those include: Wages, benefits, and other compensation. Hours of work and scheduling. The assignment of duties to be performed. The supervision of the performance of duties. Work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline. The tenure of employment, including hiring and discharge. Working conditions related to the safety and health of employees.

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THE LEISURE AND hospitality sector saw some job growth in December, according to the Bureau of Labor Statistics' December employment report. Not enough, however, according to the U.S. Travel Association, meaning more federal aid is needed. The sector added 53,000 jobs during the month, according to the BLS data. The overall economy added 199,000 jobs. "Leisure and hospitality has added 2.6 million jobs in 2021, but employment in the industry is down by 1.2 million, or 7.2 percent, since February 2020," the report said. "Employment in food services and drinking places rose by 43,000 in December but is down by 653,000 since February 2020." However, the report indicates that the recovery is uneven, said Tori Emerson Barnes, USTA's executive vice president of public affairs and policy, in a statement. December's performance was the second-worst since January 2021, she said. "The small gains made are not enough to propel the sector toward a larger recovery, as more than 7 percent of all L&H jobs remain lost compared to just 2 percent for the rest of the U.S. economy," Barnes said. "As the spread of the omicron variant continues to impact travel, there remains a pressing need for Congress to provide additional federal relief and stabilizing policies that will enable the return of business travel, professional meetings and events, and international inbound travel."

THE NATIONAL LABOR Relations Board recently withdrew its appeal of a Texas judge's ruling blocking its joint employer rule that would have broadened the shared responsibility for employees between franchisers and franchisees. Opponents of the rule said it would have damaged small businesses, including hotels, while President Joe Biden's administration said it would better enable employees to protect their rights. On Friday, the NLRB asked the U.S. Court of Appeals for the Fifth Circuit to dismiss its challenge, saying it believes the rule is lawful but wants "to consider options for addressing the outstanding joint employer matters before it," according to Bloomberg Law. The appeal had been related to a March 8 ruling in a lawsuit filed in the U.S. District Court for the Eastern District of Texas by the American Hotel & Lodging Association, the U.S. Chamber of Commerce and other business associations challenging the rule's legality.

HOSPITALITY INDUSTRY ASSOCIATIONS are welcoming two laws, one proposed on a federal level and another passed by the state of Tennessee. The federal law is long-awaited clarification of the definition joint employers and the Tennessee law limits regulations by local governments in the state that would affect small businesses, including hotels. A clear definition Versions of the Save Local Business Act recently was introduced in the U.S. House of Representatives and the Senate. Sponsors of the bill say it will provide clarity on Department of Labor's proposed new joint employer rules that have undergone multiple changes lately, leading to legal confusion. "You can't focus on running a business if the federal government keeps changing the rules. The Save Local Business Act provides long-overdue clarity and consistency that will protect our nation's small businesses," said one of the bill's sponsors, U.S. Sen. Roger Marshall. "The Biden Administration's Labor Department has relied on complicated court rulings to handle joint employers instead of providing clear guidance to the business community. In a time of economic hardship, we should be doing all that we can to help our nation's small businesses, not let the heavy hand of government regulations run amok."

SPONSORS AND SUPPORTERS of the proposed Richard L. Trumka Protecting the Right to Organize Act of 2023 say it is needed to protect the rights of workers to organize under labor unions. However, the American Hotel & Lodging Association and others claim the PRO Act puts an undue burden on small businesses, including hotels. The PRO Act would authorize penalties against employers that interfere with employees' efforts to organize, according to Democratic Rep. Robert "Bobby" Scott of Virginia, one of the co-sponsors of the bill. Also, the bill would facilitate collective bargaining agreements, close loopholes that allow employers to misclassify employees as supervisors and independent contractors. Other aspects of the PRO Act include protection for employees that experience retaliation for trying to organize a union, ensures that workers can collect "fair share" fees and authorizes a private right of action for violation of workers' rights. It also prevents employers from interfering in union elections or holding captive audience meetings. "Regrettably, for too long, workers have suffered from anti-union attacks and toothless labor laws that undermined their right to form a union," Scott said. "As a historic number of Americans put their support behind labor unions, Congress has an urgent responsibility to ensure that workers can join a union and negotiate for higher pay, better benefits, and safer workplaces."

THE U.S. DEPARTMENT of Labor's definition of who qualifies as independent contractors, due to take effect in March, is meant to ensure that workers are treated fairly, according to the department. However, the American Hotel & Lodging Association says the new rule limits independent contractors to work and impact hotels' ability to find workers. The new rule under the Fair Labor Standards Act aims to prevent misclassification of workers that can affect workers' rights to minimum wage and overtime pay, "facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at-large," the Labor Department said in a statement. It uses a multifactor analysis of six factors defining a worker's relationship with an employer, such as the worker's opportunities for profit or loss; the financial stake and nature of any resources a worker has invested in the work; the degree of permanence of the work relationship; the degree of control an employer has over the individual's work; how essential the work is to the employer's business; and the worker's skill and initiative.

ON MONDAY, THE Department of Homeland Security and the Department of Labor authorized an additional 20,000 H-2B temporary nonagricultural worker visas for fiscal year 2022. Travel and hospitality industry associations say the authorization will help ease the ongoing labor crisis. The new visas, which permit employers to temporarily hire noncitizens to perform certain labor in the U.S., are part of the first supplemental cap the DHS and DOL have allowed for the H-2B visa program in the first half of a fiscal year, according to a press release. The visas will be set aside for U.S. employers seeking to employ additional workers on or before March 31. The supplemental H-2B visa allocation includes 13,500 visas for returning workers who received an H-2B visa, or were otherwise granted H-2B status, during one of the last three fiscal years. The remaining 6,500 visas are exempt from the returning worker requirement and are reserved for nationals of Haiti and the Northern Triangle countries of Honduras, Guatemala, and El Salvador.

THE U.S. DEPARTMENT of Homeland Security will make available more than 64,000 additional H-2B temporary nonagricultural worker visas for fiscal year 2023. The extra visas will help the hotel and travel industries meet continuing labor shortages, according to the U.S. Travel Association. DHS also will issue its normal allotment of 66,000 H-2B visas as well as the 64,716 extra visas. The visas, which permit employers to temporarily hire noncitizens to perform certain labor in the U.S., became available at the beginning of October. Also, the agency created the new Worker Protection Taskforce to make sure the H-2B visa workers are not exploited. "The Department of Homeland Security is moving with unprecedented speed to meet the needs of American businesses," said Alejandro Mayorkas, secretary of Homeland Security. "At a time of record job growth, this full year allocation at the very outset of the fiscal year will ensure that businesses can plan for their peak season labor needs. We also will bolster worker protections to safeguard the integrity of the program from unscrupulous employers who would seek to exploit the workers by paying substandard wages and maintaining unsafe work conditions."

U.S. HOTELS ADDED 1,200 jobs in April, recent government statistics showed, yet employment levels in the industry still lag significantly behind pre-pandemic levels, according to American Hotel & Lodging Association. The Bureau of Labor Statistics also noted that there are currently about 1.92 million people employed in hotels, representing a decrease of 193,600 compared to February 2020. The association is advocating for policy changes to address hospitality industry's labor shortages. AHLA urged the Department of Homeland Security to issue around 65,000 additional H-2B temporary nonagricultural worker visas, as authorized by Congress in the Further Consolidated Appropriations Act. "Hotels are doing all they can to attract and retain workers, but the nationwide workforce shortage is preventing our industry from reaching its full potential," said Kevin Carey, AHLA's Interim president and CEO. "AHLA members need help filling open jobs so they can maintain and expand operations. The DHS can provide vital assistance by making available nearly 65,000 additional H-2B visas. Meanwhile, we are urging Congress to pass three important bills to help grow our nation's workforce: the Asylum Seeker Work Authorization Act, the H-2 Improvements to Relieve Employers Act and the Closing the Workforce Gap Act."

ONE IN EIGHT new jobs created over the next nine years will be in the hospitality and leisure sector, according to the Bureau of Labor Statistics. The U.S. hospitality industry is projected to add about 822,700 jobs between 2023 and 2033. This growth marks the third-largest increase among all major sectors, following business services and healthcare and social assistance. "As of 2023, leisure and hospitality recovered all jobs lost during the pandemic in 2020," BLS stated in a blog post. "Employment is projected to grow from 16.6 million today to 17.4 million by 2033. The sector comprises three main industries: accommodation; food service and drinking places; and arts, entertainment, and recreation."

U.S. HOTELS ADDED 700 jobs to their payrolls in June, according to the latest government data, but the nationwide workforce shortage continues to make it difficult for hotels to fill open positions, according to the American Hotel and Lodging Association. Total hotel employment stands at about 1.92 million, according to the Bureau of Labor Statistics, which is more than 196,000 fewer workers than in February 2020, reflecting a scarcity of available employees. Bureau of Labor Statistics also revised down the total number of hotel jobs in the country, which eliminated job gains for the industry that were reported in prior months, AHLA said in a statement. "Halfway through 2024, the hotel industry is behind where it needs to be when it comes to hiring staff, despite near-record high wages and expanding workplace benefits and flexibility," said Kevin Carey, AHLA's interim president and CEO. "The reason is the nationwide workforce shortage, which is preventing hoteliers from meeting their full potential as demand for travel remains strong. Both Congress and the administration can provide relief to our members, many of whom are small business owners, and AHLA will continue to call for action to expand the pool of available workers."

THE "DIGNITY OF Work Pledge," launched by the American Hotel & Lodging Association and Procure Impact, a B2B marketplace for overlooked communities, led 23 hospitality companies to commit more than $7.4 million to create 100,000 hours of paid employment for individuals facing work barriers. The companies are increasing purchases from vendors on Procure Impact's platform and regularly reporting progress on AHLA's Responsible Stay website. "As part of our Responsible Stay initiative, we at AHLA are pleased to support these hospitality companies in caring for guests and uplifting their communities while achieving responsible sourcing and community impact goals," said Kevin Carey, AHLA's interim president and CEO. "The strong participation in the Dignity of Work Pledge reflects the hospitality industry's commitment to compassionate service." Procure Impact connects businesses with products made by U.S. vendors employing overlooked populations, including people with disabilities, refugees, veterans and those affected by poverty, mental health challenges, homelessness, trauma, incarceration and addiction, AHLA said in a statement.

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THE NEW JERSEY legislature has passed legislation that will place new requirements regarding employees when a hotel changes hands. Hospitality and business associations are objecting to the law, saying it will hinder hotels' recovering in the state. Assembly Bill 6246 will, among other things, require new owners of a hotel to keep all employees on staff for at least 90 days after the purchase without reducing their wages or benefits. The bills also would require the previous owners to provide a list of all employees' names, addresses, hiring dates, phone numbers, wage rates and employment classifications at least 30 days before the change in control, according to the legislation. It also sets terms for how the new owners can reduce staff if necessary during the retention period as well as how violations of the law should be addressed. The proposed law is well intended, but flawed, Ray Cantor, vice president of government affairs for the New Jersey Business & Industry Association told Center Square newspaper.

MORE THAN EIGHT in ten hotels in the U.S. experienced difficulties in operations due to supply chain disruptions, according to a survey. Nearly three in four hotel operators say the disruptions are negatively impacting their business revenue. The American Hotel & Lodging Association conducted the survey among more than 500 AHLA members during Nov. 8 to 22. More than half, 52 percent, of respondents said that the problem became worse over the past three months, and 74 percent said supply chain issues are having a negative impact on business revenue. The impact on operations could have repercussions for employment, underscoring the need for targeted federal relief for hotel employees, such as the Save Hotel Jobs Act, according to AHLA. "Hotels have a complex supply chain that requires regular procurement of a wide range of goods and services each day. And whether it's production backups or shipping delays, supply chain disruptions are compounding hotels' existing problems and increasing operating costs during an already tough time," said Chip Rogers, president and CEO of AHLA. "This survey highlights just how widespread these challenges are for hoteliers. That's why now is the time for Congress to pass the Save Hotel Jobs Act, so hotel employees can get the relief they need during these difficult times."

Stonehill CRE, the real estate arm of Stonehill, has finalized a $52 million senior loan agreement with Starpoint Properties to fund the construction of Lotus Point Apartments, a 245-unit multifamily development in Mesa, Arizona, within the Phoenix Metropolitan Statistical Area. The construction of this four-story building is scheduled for completion in the first quarter of 2025, Stonehill said in a statement. "This investment mirrors our sought-after strategy - a quality property with an experienced sponsor in a growing market," said Taylor Pike, senior vice president at Stonehill CRE. "Phoenix stands as a strong job growth market due to diverse employment opportunities. Single-family home development has not kept pace, and with rising mortgage rates, well-located multifamily projects will remain in high demand." This 6-acre site, adjacent to a retail center and within walking distance of the metro light rail, will provide studio, one-bedroom, and two-bedroom units, along with amenities such as a fitness center, clubhouse, co-working area, pool, and parking options, Stonehill said.