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U.S. Senate Votes to Overturn Joint-Employer Rule, Seen as Job-Killing Measure

The American Hotel & Lodging Association (AHLA) has achieved a significant victory as the U.S. Senate voted to overturn the National Labor Relations Board’s (NLRB) joint-employer rule. This resolution, previously passed by the House of Representatives in January, now awaits consideration by the president.

AHLA Interim President & CEO Kevin Carey expressed gratitude for the bipartisan Senate vote, emphasizing its importance for hoteliers and small business owners. The resolution’s passage signals a consensus among lawmakers that the NLRB’s rule would stifle job creation and harm businesses across the country.

The joint-employer rule, released by the NLRB in October, faced criticism for its expansion of the “joint-employer standard” under the National Labor Relations Act. This rule raised concerns among businesses, particularly small hoteliers, regarding increased liability and potential negative impacts on employment.

The House’s approval of a Congressional Review Act resolution in January marked the initial step in challenging this rule, a move echoed by the Senate’s recent vote.

U.S. Senate Votes to Overturn Joint-Employer Rule, Seen as Job-Killing Measure

U.S. Senate Votes to Overturn Joint-Employer Rule, Seen as Job-Killing Measure (Credits: Franchise Times)

In addition to legislative action, AHLA and other business groups pursued legal recourse against the joint-employer rule. Their lawsuit led to a significant victory in the U.S. District Court for the Eastern District of Texas, where the court blocked the NLRB from implementing the rule. Notably, the court’s decision also reinstated a previous NLRB standard from 2020, providing businesses with protection against undue liability for employees they don’t directly control.

AHLA’s success in both the legislative and legal arenas underscores the widespread opposition to the NLRB’s joint-employer rule. By securing victories in the House, Senate, and the courts, AHLA has demonstrated its commitment to advocating for the interests of hoteliers and small businesses.

The resolution’s advancement to the president’s desk for consideration represents a crucial step towards relieving businesses from the burdens imposed by the contentious joint-employer rule.

Looking ahead, AHLA remains vigilant in its efforts to protect the hospitality industry and promote favorable policies for its members.

The association’s advocacy highlights the importance of collaboration between lawmakers, businesses, and industry stakeholders in addressing regulatory challenges and supporting economic growth. As AHLA continues its work on behalf of hoteliers nationwide, the resolution’s passage serves as a testament to the impact of unified advocacy in shaping favorable outcomes for businesses and workers alike.

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