Washington, D.C. – August 28, 2015 – The American Hotel & Lodging Association (AH&LA), the sole national association representing all segments of the 1.8 million-employee lodging industry, issued the following statement following the National Labor Relations Board (NLRB) decision in the Browning-Ferris Industries of California case, which greatly expands the definition of joint-employer and undermines franchise owners’ control over their businesses.
“The hotel industry remains a driving force in today’s economy, and provides unique opportunities for those who own and operate their own businesses to achieve the American Dream. That dream, for so many of our members, is threatened because of today’s short-sighted, highly politicized decision.
“With the 92 percent of lodging properties in the United States owned by franchisees and small businesses, we are very concerned that these changes to the joint-employer standard will have a profound negative impact on economic investment and job growth across our industry. The NLRB’s decision to expand the definition of joint employer could severely limit opportunities by diminishing the autonomy of millions of small business owners and dissuading potential entrepreneurs from wanting to start a new business.
“For more than 30 years, the franchisor/franchisee relationship has been based on the fundamental understanding that franchisors and franchisees are not joint employers because they do not exercise direct control over the same employees’ responsibilities. Now, many of our small business owners could very well lose their ability to make decisions about what is best for the men and women they work with every day. The focus of the government should be to encourage and empower businesses, not stifle them,” said Katherine Lugar, President and CEO of the American Hotel & Lodging Association.
AH&LA co-chairs the Coalition to Save Local Businesses (CSLB), comprised of small and local businesses, concerned citizens and trade organizations, to inform Members of Congress about the potentially devastating impact that redefining the joint employer standard would have on the U.S. economy.
Please visit the coalition’s website learn more: www.savelocalbusinesses.com.
