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May 2024 | Volume 25 #225

In like Quinn

Sonesta’s chief development officer

sits for Leadership Series

16

The new

American Dream

Hoteliers look to updated immigration policies for

solutions to the labor shortage

Leadership Series

Hotel companies in the news include:

Jay Sahajanad LLC, Central NY Hospitality LLC, Sai LLC

The Voice of Asian American Hoteliers

Getting beneath

the surface

Hoteliers turning to probiotic cleaners

and antimicrobial surface treatments

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Hoteliers in the U.S. are looking to proposed

legislation, such as the SEASONAL Act and the

Asylum Seeker Work Authorization Act, along

with expansions of the H-2B temporary non-

agricultural worker visa program to provide

workers to fill gaps in their staffing.

Cover Story

News

Leadership Series

AAHOACON

Product Feature

20 | The new American Dream

Hoteliers look to updated immigration

policies for solutions to the labor shortage

5 | Gharib is the new Red Roof president

SVP for franchise operations Malouf is now

chief operating officer

6 | AAHOACON24 sees new chairman,

speeches on history

The event also saw the return of Marriott and

election of a new secretary

7 | LendingCon 2024 scheduled for

August

This is the fourth year for the conference

focused on hotel financing

8 | AAHOA, AHLA set legislative advocacy

goals

Issues include tax credits, fees, labor shortage

10 | Senate passes bill blocking NLRB

joint employer rule

President Biden vetoed the legislation that

AHLA welcomed as expected

11 | AHLA launches ‘Tax Day of Action’

campaign to pass tax relief bill

The association called on its members to

support the proposed legislation

12 | Sai’s Tru by Hilton wins Hilton

development award

The company is led by president Rajesh

Bhagia

Thakor and Deva named to lead Maya

Hotels

Thakor joined in 2008, while Deva came

aboard in 2019

16 | In like Quinn

Sonesta’s chief development officer sits for

Leadership Series

18 | AAHOACON24

Scenes from AAHOACON24

26 | Getting beneath the surface

Hoteliers turning to probiotic cleaners

and antimicrobial surface treatments

30 | Gujarati translation of top stories

begins

On the cover

14 | Hyatt plans eight new hotels in India,

Southwest Asia for 2024

Growth coincides with anticipated travel

rebound in the region

India's Uttar Pradesh state mulls $3.9

billion investment in hospitality and

tourism

Religious tourism surged in the state

following the Ayodhya Lord Ram temple

consecration on Jan. 22

15 | ISH, Sommet Foundation and Accor

launch Indian Talent Development

Initiative

The program aims to provide job

opportunities in the hospitality industry to

underprivileged youth

COMING

NEXT ISSUE:

Bringing in the

summer dollars

Contents

06

08

11

13

14

16

05

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May 2024 | Issue 225

05

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Keep the dream alive

his month’s cover story is about immigration, a topic I know is near

and dear to the hearts of many of you. There’s an element of generosity

in the stories of hoteliers providing employment for refugees from the

wars in Afghanistan and Ukraine, but the emphasis is on the practical

need for comprehensive immigration reform.

America needs workers, but why?

Really, it’s more that the hotel industry needs workers, particularly because so

many had to be laid off during the pandemic. An interesting data point found in

this month’s cover comes from the American Hotel & Loding Association, which

found that, while the industry added 1,200 jobs in April, the current number of

hotel employees nationwide, 1.92 million people, is nearly 200,000 people short of

February 2020 levels.

Kevin Carey, AHLA’s Interim president and CEO, said hotels are doing what they

can to attract and retain employees, including enhancing wages, benefits, and

flexibility. Still, there remains a shortfall that provides an open door to immigrant

workers.

There has been a persistent belief by many that one reason for that is that

immigrants are willing to take jobs citizens don’t want. A 2020 survey by the Pew

Research Center found that 77 percent of adults believed undocumented immigrants

mostly fill jobs U.S. citizens do not want.

More recent research from the U.S. Chamber of Commerce calls the dynamic

affecting the American labor force “The Great Reshuffle.” The hospitality and

food service segments hae seen the highest quit rates, and those workers are not

returning.

“While quit rates remain high, hiring rates continue to outpace them as many

workers have been transitioning to other jobs in search of an improved work-life

balance and flexibility, increased compensation, or a strong company culture,” the

chamber said in one article on its site.

In a day of increasing use of remote work, it may be that hotels will become more

and more reliant on temporary immigrant workers who still don’t have that option.

At the same time, take comfort in the idea that you may be putting those temporary

workers on the path to permanent residence within the American dream.

Edward J. Brock, Senior Editor

[email protected]

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Editor's Letter

04

www.asianhospitality.com

May 2024 | Issue 225

05

News

www.asianhospitality.com

May 2024 | Issue 225

ack Gharib is the new president

of Red Roof Inn, assuming the

position vacated by George Limbert

10 months ago. Previously, he served

as senior vice president of operations

for Highgate Hospitality Investment &

Management Co.

The company also announced that

Fouad Malouf is now chief operating

officer, moving into the newly created

position from his previous role of senior

vice president of franchise operations. He

will oversee the company’s day-to-day

operations.

Gharib also held senior management

positions in franchising, operations

and brand management with Marriott

International, Vacasa Vacation Homes and

Rentals and LaQuinta by Wyndham Hotels

& Resorts. Malouf joined the company in

1982.

“We are happy to welcome Zack

Gharib as Red Roof’s new president, an

appointment that we are confident will

take the brand and its franchise partners

to new heights. Zack brings a laser focus

on growth and operations excellence to

his new role and has demonstrated his

ability to deliver transformative results for

some of the most widely regarded brands

in the hotel industry,” said Mohamed

Thowfeek, member of the Red Roof board

of directors and the company’s

interim president. “We look

forward to Zack’s immediate

positive impact on Red Roof

and its franchisees, and also

congratulate Fouad Malouf on

his promotion to chief operating

officer. Fouad brings unmatched

knowledge and experience

with the Red Roof brand and

franchise community and

will work closely with Zack to

accelerate the company’s growth

and franchising excellence in the

months ahead.”

Gharib is relocating to

Columbus, Ohio, and will

operate out of Red Roof’s

corporate headquarters there.

“I am deeply honored and

excited to be joining Red Roof as its

president at this dynamic and promising

moment in the company’s development,”

Gharib said. “I am passionate about

helping owners, franchisees and team

members achieve their fullest potential,

deliver exceptional guest service, and

achieve operational excellence – which I

hope will be instrumental in driving Red

Roof’s continued growth and success. I

look forward to developing a program of

focused action and results that will help

drive this venerable brand’s growth and

transformation for many years to come.”

AAHOA issued a statement

congratulating Gharib and Malouf.

“AAHOA extends its sincerest

congratulations to Zack on being named

president of our longtime partner Red

Roof,” said Miraj Patel, AAHOA chairman.

“AAHOA members own some 93 percent

of Red Roof properties, and we look

forward to continuing our

longstanding relationship

with the brand under Zack’s

leadership.”

“AAHOA welcomes Zack

and Fouad to their new roles,”

said Laura Lee Blake, AAHOA

president and CEO. “With Zach’s

franchising, operations, and

brand-management expertise,

and Fouad’s 40-plus years of

experience, we know the future

is bright for Red Roof and its

franchisees under its new

leadership team.”

Limbert left the company

last June to become chief

administrative officer and

general counsel of Feazel

Roofing in Columbus, Ohio.

Gharib is the new

Red Roof president

SVP for franchise operations Malouf is now chief operating officer

Zack Gharib, left, is the new president of Red Roof Inn and Fouad Malouf, the company’s senior vice

president for franchise operations is now chief operating officer.

Zack Gharib succeeds George Limbert, who stepped down from the Red

Roof presidency last July to become chief administrative officer and general

counsel of Feazel Roofing in Columbus, Ohio.

News

06

www.asianhospitality.com

May 2024 | Issue 225

t the 2024 AAHOA Convention &

Trade Show held in early April

in Orlando, Florida, history was

being made at the same time it was

being recalled. Miraj Patel assumed

his role as the youngest chairman

the association has had, while his

predecessor Bharat Patel and AAHOA

President and CEO Laura Lee Blake

spoke on the legacy that led to the

association’s current success.

AAHOACON24, the 35th national

conference for the association, saw

more than 7,000 registered attendees

and 524 exhibitors at the Orange

County Convention Center, blocks

away from Disneyworld and Universal

Studios. Event revenue was 6 percent higher

than 2023 and 31 percent higher than in

2022. The tradeshow sprawled over more

than 84,500 square feet of exhibit space.

In a speech during the first general

session, Bharat presented his theory on

what led to AAHOA’s current status.

“Because AAHOA is forever growing

and improving for our association and our

members, success is an ongoing journey, a

journey that will take us to greater heights

and major milestones,” Bharat said. “We're

all familiar with the financial concept

of compound interest. So, let me offer a

new take on an old idea called compound

success.”

Blake began her general session

presentation by also highlighting the idea

that AAHOA is defined by its members

struggle to realize the American dream. She

pointed out that AAHOA’s original purpose

was to combat racism against Indian

Americans that was rampant in the industry

at that time. As the association’s attorney,

she played an active role in that fight.

“I recall a period only 10 years ago, when

‘American owned’ signs started popping

up across this country to distinguish and

degrade AAHOA member owned hotels,”

Blake said. “It was a practice that implied

that these hotels were somehow better than

those hotels owned by immigrants and was

a threat to their livelihood. Again, I saw the

strength and unity of AAHOA as we lobbied

and educated the world that our members

are loyal Americans who have achieved the

true American dream.”

Marriott returns

Last year, Marriott International severed its

support for AAHOA over the association’s

12 Points of Fair Franchising and support

for franchise reform legislation in New

Jersey. At AAHOACON24, the company

reestablished contact via an appearance by

Liam Brown, Marriott International’s group

president for the U.S. and Canada.

Brown did not elaborate on Marriott’s

exact status with AAHOA but implied that

negotiations were still ongoing. He said

“the door with Marriott is always open” and

there are many other challenges facing the

hotel industry.

“I really, really believe that by keeping

the lines of communication open and

leveraging our collective expertise, we can

overcome these challenges together and be

a real force for good in our industry,” Brown

said. “We should be focused on ensuring

the long-term success of this industry that

has given all of us so much. We do that by

talking to one another and engaging with

one another.”

At a press conference with AAHOA

officers during the convention, Bharat

clarified that, in fact, AAHOA and Marriott

are still in negotiations.

“Marriott wants to see show that there

is a relationship still with AAHOA and we

have some key differences,” Bharat said.

“We're trying to work through those

key differences and make sure that the

two organizations are on a similar page

moving forward.”

Youngest chairman

takes charge

At 26, Miraj Patel became the

youngest person to take on the

AAHOA chairmanship. He is a

second-generation hotelier who

began his career in hospitality at a

young age, growing up in his family’s

first 30-room independent property.

He served as an AAHOA committee

member for several years and joined

the AAHOA board of directors in 2019

after being elected as young professional

director Western Division.

“Serving as the youngest chair in the

association's history further demonstrates

AAHOA’s commitment to fostering the

growth and success of the next generation,”

Miraj said. “I’m always encouraging young

professionals not to let age determine

success. Many times, people may say you’re

too young, but that is absolutely not true.

There are so many folks who are young but

still do whatever it takes to find success. If

you never try, you’ll never know what you’re

capable of achieving.”

Also during AAHOACON24, Pinal Patel

was elected secretary.

Pinal’s parents bought their first

independent hotel in 1991, and he is a

second-generation hotelier even after

graduating flight school at Embry Riddle

in Daytona Beach, Florida, before buying

his first franchise property. Previously,

he has served as an AAHOA ambassador

and as AAHOA’s director at large Eastern

Division.

“Hard work definitely pays off,” Patel said.

“I'm going to make sure we do what's right

for the association and for the members.

I promise to all my supporters, my family,

and my fellow members that I will not

let you down. I will do what's best for the

association's interests."

See more pictures from AAHOACON24 on

p. 18.

AAHOACON24 sees new

chairman, speeches on history

The event also saw the return of Marriott and election of a new secretary

Miraj Patel, AAHOA’s new chairman, on stage at

AAHOACON24.

May 2024 | Issue 225

www.asianhospitality.com

07

News

quality & growth

“ How would we describe hihotels in one

word? Quality... from complete marketing

and reservations support to the outstanding

hotels throughout the system.”

This is not an offering. Federal laws and regulations and the laws and regulations of some states and provinces regulate the offer and sale of franchises. An offering

will only be made in compliance with those laws and regulations, which may require that we provide you with a disclosure statement. © 2024 Hospitality International

800-892-8405 • hifranchise.com • [email protected]

delivers

Amit Patel, GM &

Veena Patel, Owner

Red Carpet Inn

Rochester, MN

LendingCon 2024

scheduled for August

This is the fourth year for the conference focused on hotel financing

he Lendingcon 2024 Conference, the fourth of the

series, is scheduled for Aug. 7 to 8 at the Rosen Centre

in Orlando. The theme this year is “Shaping the

Future of Lending” and will feature keynote speeches from

industry experts, panel discussions on emerging

lending models, breakout sessions on technological

advancements and networking opportunities with

other professionals.

More than 600 people attended last year’s

LendingCon, which focuses on hotel financing, in

the same location. Jan Gautam, president and CEO of

IHRMC Hotels & Resorts and founder of LendingCon,

said he expects this year’s conference to follow suit.

“We are thrilled with the overwhelming response

and success of LendingCon 2023,” Gautam said. “The

event provided a unique platform for industry leaders

to come together, exchange ideas and shape the future

of lending. The level of engagement and enthusiasm

demonstrated by our

attendees was truly

inspiring.”

Gautam said he

created the conference

to provide focus on

hotel lending and

finance not provided by

other industry events.

Attendees include

professionals from

commercial banks,

fintech companies,

credit unions, regulatory

bodies, investors,

developers, consultants

and policy makers.

“This is a conference for hoteliers designed by

hoteliers,” Gautam said.

This year’s keynote speakers have not yet been

announced. Last year’s speakers includedU.S.

Congressman Bill Posey, who serves on the

House Financial Services Committee, and Florida

Congressman Darren Soto.

Jan’s daughter Adrianna Gautam, IHRMC’s director

of public relations, missed the first LendingCon

because she as still in college, but she’s attended the

past two. It’s grown from around 200 attendees to

more than 700 in that time.

“It’s grown so much over the past three years. But

just to see the amount of vendors and the attendees,

I see new faces every year. It’s beautiful to see a

community come together and in discuss hospitality,

financing, lending, technology and operations,”

Adrianna said. “We just wanted to provide a space where

people can come together and learn about lending, operating a

hotel, the statistics and just being able to understand having a

property and being able to manage and own that properly.”

Jan Gautam, president and CEO

of IHRMC Hotels & Resorts and

founder of LendingCon, on stage

during last year’s conference.

News

08

www.asianhospitality.com

May 2024 | Issue 225

resident Biden’s State of

the Union address before

Congress on March 7

touched on several issues hotel

industry associations have been

advocating for a while. AAHOA

and the American Lodging and

Hotel Association both issued

responses to the speech and

AAHOA held its 2024 Spring

National Advocacy Conference

during the week of March 14.

The issues at hand include

the extension of tax credits,

handling of junk fees for

greater disclosure and transparency

and raising the federal minimum wage.

During SNAC, more than 200 AAHOA

leaders and members spent two days

in Washington, D.C. The conference

opened with a legislative learning

session at the Ronald Reagan Building

and International Trade Center, followed

by an evening Congressional Reception

at the Cannon House Office Building

and then a full day of Congressional

meetings.

“Each year we continue to see the

relationships grow between our AAHOA

Members and their elected officials,”

said Laura Lee Blake, AAHOA president

and CEO. “Our twice-yearly advocacy

conferences are quickly becoming the

foundation for shaping and driving

national policy and our members are

making it happen.”

Nearly 30 members of Congress met

with the AAHOA delegation, including

Republican Sen. Roger Marshall of

Kansas and California Democrat

Congressman Ro Khanna. Marshall

is a co-sponsor of the Credit Card

Competition Act that will promote fee,

security, and service competition among

credit card networks, and which AAHOA

supports. Khanna, the son of Indian

immigrants, told the AAHOA members

that representation is crucial to serving

Indian-American communities and

strengthening America's economic and

strategic partnership with India, such as

AAHOA’s “Made in India” initiative.

“As a champion of advocacy and

building relationships with elected

officials, AAHOA is proud to advocate

on behalf of the hotel industry in the

halls of Congress,” said Bharat Patel,

AAHOA chairman. “SNAC provides

AAHOA leaders the opportunity to learn

about the issues impacting our industry

and prepares them to have productive,

impactful meetings with their elected

officials on Capitol Hill. AAHOA’s

reputation, influence, and recognition in

Washington continues to grow, and it is

thanks to the AAHOA members who take

the time to make advocacy a part of their

business plan.”

The issues

Along with the Credit Card Competition

Act, top issues for AAHOA include

expanding access to capital by increasing

the SBA loan limit to $10 million

and supporting the LIONS Act. The

association also supports the Overtime

Pay Flexibility Act and the SEASONAL Act

as means to address the ongoing labor

shortage.

“AAHOA is strategically positioned to

address these pivotal issues at SNAC,”

Blake said. “As our members confront

escalating challenges, there has never

been a more opportune moment for

AAHOA to be in our nation’s capital. We

will continue to articulate our concerns,

establish meaningful relationships, and

lay the groundwork for impactful change

in the years ahead.”

Biden’s state of the union address did

not address every issue that concerns

AAHOA members, Patel said.

“President Biden's address

touched on topics such as

tax credits, junk fees, and

plans for increasing the

federal minimum wage;

however, AAHOA members

are currently grappling

with the tangible impacts

of rising inflation, a decline

in corporate travel, acute

workforce shortages, soaring

property insurance rates,

and escalating prices for

goods and services,” Patel

said. “AAHOA remains committed to

upholding our reputation as some of the

nation's most informed, engaged, and

knowledgeable association members in

Washington, D.C.”

AHLA pursues labor

relief, fee regulation

After Biden’s speech, AHLA released its

own legislative agenda.

“While AHLA’s outlook for the future of

the hotel industry is optimistic, hoteliers

are facing a number of hurdles at the

federal level,” AHLA said. “These include

labor shortages, stubborn inflation, and

a host of federal regulations that are

tying hoteliers up in red tape.”

AHLA’s priorities include:

Supporting the Hotel Fees

Transparency Act and the No Hidden

Fees Act that would create a single

fee-display standard for all lodging

businesses, including hotels, online

travel agencies, metasearch sites and

short-term rental platforms.

Seeking legislation to overturn the

National Labor Relations Board’s joint-

employer regulation, which makes it

more likely that hotel franchisers can

be held responsible for employees at

franchised hotels.

Challenging the U.S. Department

of Labor’s proposed overtime-

pay regulation and regulation that

changes the way workers are classified

as independent contractors or

employees.

AAHOA, AHLA set legislative

advocacy goals

Issues include tax credits, fees, labor shortage

More than 200 AAHOA leaders and members spent two days in Washington,

D.C., during its 2024 Spring National Advocacy Conference.

News

News

he American Hotel & Lodging

Association convened hotel

and sustainability leaders in

Washington for the second annual

“Responsible Stay Summit” on Feb. 28,

reaffirming the industry's dedication

to environmental sustainability. The

summit was part of AHLA’s 2022

Responsible Stay initiative and focused

on energy efficiency, waste reduction,

water conservation, and responsible

sourcing, AHLA said in a statement.

The summit addressed environmental,

social, and governance strategies, federal

energy policy, and green financing, while

offering crucial support to hoteliers in

their sustainability efforts, the statement

added.

This year's summit featured two

announcements: AHLA and the Hotel

Association of Canada unveiled a

partnership to oversee the Green Key

Global sustainability certification

program in the U.S. and Canada starting

April 1. Additionally, AHLA and Procure

Impact launched a Dignity of Work

Pledge, aiming to generate 100,000 hours

of paid employment for underserved

populations, thereby promoting

responsible sourcing practices.

“AHLA is proud to host the inspiring

Responsible Stay Summit, which is

designed to help hoteliers build a more

sustainable future for our guests, our

industry, and our planet,” said Chip

Rogers, AHLA’s president and CEO.

“Hoteliers can always count on AHLA for

the latest sustainability tools, resources,

and best practices in this fast-evolving

field.”

The event included speakers such as

Dan Feldman, partner at Covington, Ben

Feller, partner at Maslansky + Partners,

Greg Gershuny, executive director of the

Energy and Environment Program at The

Aspen Institute, and Emily Kreps, global

head of ESG and Sustainable Finance at

Deutsche Bank, the statement said.

‘Green Key Global’

The Green Key Global sustainability

certification program will be launched

in the U.S. and Canada on April 1, AHLA

said. The program evaluates hotels based

on key criteria such as energy and water

conservation, waste management, air

quality, and more, offering a roadmap for

ongoing enhancement.

“This partnership is a gamechanger

for the hotel industry in the U.S. and

Canada and takes our commitment to

sustainability to the next level,” said

Rogers. “Green Key Global provides

important third-party validation for

hotels’ sustainability efforts, and it gives

sustainability-minded travelers the

information they need to choose the

lodging options that are right for them.

AHLA and HAC will be working together

to promote these goals through this

important partnership.”

HAC established Green Key Global

in 1994 to certify hotels' environmental

policies, aligning its criteria with the United

Nations Sustainable Development Goals.

“We are so proud of the commitments

hotels are making on the ground as part

of this program,” said HAC President and

CEO Susie Grynol. “Establishing a Green

Key Global North American standard of

sustainability allows more properties to

elevate their leadership in this space, and

through this partnership, we believe we

can make sustainability accessible for all

hotels.”

In October, AHLA teamed up with

IncentiFind to help more than 30,000

AHLA members discover sustainability-

focused cost-saving opportunities,

resulting in significant operational

expense reductions totaling $70 billion in

incentives, including tax credits, grants,

and fee waivers.

AHLA offers hoteliers

multiple routes to a

sustainable future, including:

Enrolling in the Green Key Global

hotel sustainability certification

program.

Utilizing IncentiFind to access

financial incentives for sustainability

initiatives.

Committing to the Dignity of Work

Pledge for sustainable sourcing.

Learning food waste reduction best

practices through Hotel Kitchen.

Endorsing the Responsible Stay

principles.

AHLA hosts second annual 'Responsible

Stay Summit' in Washington

It extends AHLA's 2022 Responsible Stay initiative that promotes

environmental sustainability

The American Hotel & Lodging Association hosted its second annual Responsible Stay Summit in

Washington. Hotel and sustainability leaders attended to discuss ways to strengthen the industry's

commitment to environmental sustainability.

www.asianhospitality.com

99

APRIL 2024 ASIAN HOSPITALITY

— by J.D. Power

IN GUEST SATISFACTION

Among Economy Hotel Brands*

Sonesta’s Americas Best Value Inn. Best value for the

guest. Best value for the owner. Best value. Period.

• Low Flat Fees (per room per month)

• Owner-Friendly Contracts

• Reasonable Brand Standards

*Tied in 2023. For J.D. Power 2023 award information, visit jdpower.com/awards.

This advertisement is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. Offering by Franchise Disclosure Document only

where required by law from Sonesta RL Hotels Franchising Inc., 400 Centre St., Newton, MA. ©2024 Sonesta International Hotels Corporation.

Americas Best Value Inn & Suites Elk City

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News

10

www.asianhospitality.com

May 2024 | Issue 225

he 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 vetoed

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.

The NLRB ruling 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.

Not likely to receive

Biden’s signature

The Senate version of the Congressional

Review Act was sponsored by Louisiana

Republican Sen. Bill Cassidy, West

Virginia Democrat Sen. Joe Manchin

and Republican Minority Leader Mitch

McConnell. Manchin and Cassidy gave

similar reasons for supporting the

legislation.

“In West Virginia, more than 98

percent of our businesses are small

businesses, and they are the heart and

soul of our communities,” Manchin said.

“The NLRB’s joint employer rule would

shut the door for thousands of citizens

who want to start a business and fulfill

the American Dream when we should

be focused on bolstering our economic

growth and empowering Main Street

America. I’m glad our CRA resolution

has now passed both the House and the

Senate and I encourage President Biden

to accept this bipartisan, bicameral

rejection of this confusing and

unnecessary rule.”

“Saddling franchisers

with liability for thousands

of franchise owners that

actually operate the day-to-

day activities of small business

would be a sure way to destroy

the system of franchising.

This model has empowered

those underrepresented in the

business community, such as

women and people of color,

to become successful small

business owners and create jobs

for others,” said Cassidy. “The

Biden administration should

support workers and increase

economic opportunity, not

make it easier to forcibly and

coercively unionize workers

while undermining the business

model of the establishments they

work for.”

However on May 3, Biden did veto

the bill, saying the NLRB rule would

prevent companies from evading their

responsibility for employees’ working

conditions and nullify workers’ attempts

to organize to ensure their rights.

“Without the NLRB’s rule,

companies could more easily avoid

liability simply by manipulating

their corporate structure, like hiding

behind subcontractors or staffing

agencies,” Biden said in a statement.

“By hampering the NLRB’s efforts to

promote the practice and procedure of

collective bargaining, Republicans are

siding with union-busting corporations

over the needs of workers and their

unions.”

Carey said AHLA was disappointed

that Biden chose to veto the bill.

“Thankfully, a federal court has

already intervened and is blocking the

administration from implementing its

job-killing joint-employer rule following

a lawsuit from AHLA and other business

groups,” he said. “We stand ready to fight

any attempt by the NLRB to appeal the

court’s decision.”

Senate passes bill blocking

NLRB joint employer rule

President Biden vetoed the legislation that AHLA welcomed as expected

The U.S. Senate voted to block the National Labor Relations Board’s final

definition of joint-employer status that the American Hotel & Lodging

Association said would stifle job creation.

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