Win for US hoteliers as National Labor Relations Board withdraws joint-employer appeal

The American Hotel & Lodging Association (AHLA) Interim President & CEO Kevin Carey has welcomed the decision of the National Labor Relations Board (NLRB) to withdraw its appeal of a federal court ruling blocking its joint-employer final rule. That rule would have made it easier for the NLRB to declare joint-employment status in business relationships and allowed unions to organise by company rather than property by property. “Today marks a huge victory in our fight to preserve the franchise business model for hoteliers across the country. The NLRB’s decision to withdraw its appeal will provide our industry with the certainty we have been asking for and protect the franchise business model that has paved the way to the American Dream for tens of thousands of hoteliers,” said AHLA Interim President & CEO Kevin Carey. “We couldn’t have achieved this outcome without the support of our 30,000-plus dedicated members, and AHLA stands ready to fight any further NLRB attempts to change the joint-employer standard.” The rule was designed to force franchisors to the negotiating table with workers they do not actually employ to increase unionisation. On 19 July, the NLRB withdrew its appeal in the US Court of Appeals for the Fifth Circuit that sought to overturn the lower court ruling. As a result, the 2020 joint employer standard favoured by hoteliers remains in effect.