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Hotel Industry Applauds New Joint Employer Legislation

Hotel Industry Applauds New Joint Employer Legislation

Washington, D.C.—The American Hotel & Lodging Association (AHLA) applauded the introduction of the “Save Local Business Act,” which will provide clarity to America’s small businesses and entrepreneurs on what it means to be a “joint employer.”

Following a recent hearing on the effects of the National Labor Relations Board’s (NLRB) Browning-Ferris Industries of California ruling that significantly expanded the joint employer definition, Rep. Virginia Foxx (R-NC), chairwoman of the House Committee on Education and the Workforce, along with Representatives Bradley Byrne (R-AL), Tim Walberg (R-MI), Henry Cuellar (D-TX), and Lou Correa (D-CA), introduced the bipartisan legislation, which will address joint employer liability under both the National Labor Relations Act and Fair Labor Standards Act. The legislation reverts back to the previous definition of joint employment where an employer may be considered a joint employer of a worker only if it “directly, actually, and immediately” exercises significant control over the primary elements of employment, such as hiring, firing, determining pay, or supervising employees on a routine basis. This solution addresses uncertainty experienced by local businesses under the expanded joint employer standard.

“On behalf of the small business owners and entrepreneurs who represent three out of every five lodging businesses across the United States, we applaud the bipartisan leadership of Chairwoman Virginia Foxx, and Representatives Bradley Byrne, Tim Walberg, Henry Cuellar and Lou Correa for introducing this targeted and focused legislative fix that will foster and incentivize job growth, free enterprise, and certainty in the workplace,” said Brian Crawford, vice president of government and political affairs for AHLA. “This is a significant step forward in helping ensure that employers have clarity and certainty as to who they employ and for whom they are liable under the law, in order spur growth and create more career opportunities in the hotel industry.”

The American Hotel & Lodging Association is a member of the Coalition to Save Local Businesses, which represents thousands of local businesses and millions of American jobs through its membership and partner organizations. The coalition’s goal has been to inform Members of Congress and key stakeholders about the consequences of the NLRB’s decision to expand the definition of who can be held as a joint employer. The coalition has been advocating in Congress to support legislation that would permanently recognize the long-standing and widely accepted definition of joint employer.

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