Skip to content

Search

Latest Stories

AHLA opposes new DOL rule defining independent contractors

The department claims the change ensures fairness, AHLA says it will limit hotels’ operations

AHLA opposes new DOL rule defining independent contractors

THE U.S. DEPARTMENT of Labor’s definition of who qualifies as independent contractors, due to take effect in March, is meant to ensure that workers are treated fairly, according to the department. However, the American Hotel & Lodging Association says the new rule limits independent contractors to work and impact hotels’ ability to find workers.

The new rule under the Fair Labor Standards Act aims to prevent misclassification of workers that can affect workers’ rights to minimum wage and overtime pay, “facilitates wage theft, allows some employers to undercut their law-abiding competition and hurts the economy at-large,” the Labor Department said in a statement. It uses a multifactor analysis of six factors defining a worker’s relationship with an employer, such as the worker’s opportunities for profit or loss; the financial stake and nature of any resources a worker has invested in the work; the degree of permanence of the work relationship; the degree of control an employer has over the individual’s work; how essential the work is to the employer’s business; and the worker’s skill and initiative.


“Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” said Julie Su, acting secretary of labor. “This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.”

However, AHLA said in its statement that the new rule, which rescinds the 2021 Independent Contractor Rule, will limit some individuals’ opportunities to work as independent contractors and hurt hotels’ ability to maintain operations.

“We are extraordinarily disappointed that the Labor Department dismissed the concerns of the thousands of small business owners AHLA represents and is insisting on making it harder for hotels to maintain operations in what is already one of the toughest labor markets in recent history,” said Chip Rogers, AHLA president and CEO. “In the face of a nationwide shortage of workers, hoteliers need maximum flexibility to hire independent contractors, and contractors often prefer the flexibility of being classified this way. Despite this reality, the Labor Department is focused on making it harder, not easier, for hoteliers to hire the workers they need.”

Rogers also said AHLA is reviewing legal options to challenge the new regulation. Its other arguments against the new regulation center around complications that it presents to the worker classification process.

“The regulation invites confusion and litigation by establishing a test where any of six different factors could be determinative of employee status, as opposed to DOL’s prior regulation, under which two core factors guided classification determinations.Additionally, the regulation introduces a vague mandate forcing businesses to consider the ‘economic realities’ of the relationship between a worker and a company as well as an undefined set of ‘additional factors’ that must also be considered,” AHLA said in its statement. “The regulation will increase liability for businesses and reduce opportunities for those interested in working as independent contractors, a status many workers prefer because it gives them more flexibility and autonomy over their work. This will make it more costly and time consuming for hoteliers to hire the independent contractors they need, harming the industry’s ability to maintain operations and reducing business opportunities for independent contractors.”

In November, former AAHOA Chairwoman Jagruti Panwala testified before Congress on behalf of AHLA regarding the Labor Department’s proposal to raise the overtime salary exemption threshold for executive, administrative, and professional employees under the Fair Labor Standards Act. Panwala, now a board member for AHLA, argued that the proposed change would actually limit hotel employees’ opportunities and does not take into account economic differences between regions of the country.

More for you

U.S. travelers using mobile devices to book independent boutique hotel stays with personalized offers and smart tech in 2025

Study: Personalization boosts independent hotel bookings

Summary:

  • Around 95 percent of U.S. travelers are more likely to book independent hotels with personalized offers, according to TakeUp.
  • 59 percent plan more travel in 2025, with 78 percent favoring weekend getaways and 65 percent domestic trips.
  • Top booking deterrents are few reviews at 39 percent, unclear cleanliness or quality at 38 percent and inflexible cancellations at 29 percent.

PERSONALIZED OFFERS BASED on interests would make 95 percent of U.S. travelers more likely to book at an independent hotel, according to TakeUp, a revenue management platform for independent hotels. About 85 percent are open to technologies such as smart check-in, recommendations and AI-based pricing.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
Newly renovated Marriott Saddle Brook hotel in New Jersey, now managed by Stonebridge Cos.

Stonebridge to manage Marriott in Saddle Brook, NJ

Summary:

  • Stonebridge Cos. has added the Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service portfolio.
  • The renovated property is owned by Victory Worldwide LLC, led by CEO Anil Monga.
  • Located 20 miles from New York City, it is near the Meadowlands Sports Complex, Garden State Plaza and Hackensack University Medical Center.

STONEBRIDGE COS. RECENTLY added the 244-room Marriott Saddle Brook in Saddle Brook, New Jersey, to its full-service managed portfolio. The property is owned by Victory Worldwide LLC, led by CEO Anil Monga.

Keep ReadingShow less
Arizona SpringHill Suites Added as 9th DST by Peachtree

Peachtree adds AZ SpringHill Suites as 9th DST

Summary:

  • Peachtree Group added the 128-key SpringHill Suites Phoenix West Avondale in Avondale, Arizona, its ninth Delaware Statutory Trust offering.
  • The hotel, opened in August 2024, is positioned to benefit from Avondale’s population and economic growth.
  • Peachtree’s DSTs offer tax deferral for investors reinvesting proceeds from appreciated real estate.

PEACHTREE GROUP RECENTLY added the 128-key SpringHill Suites Phoenix West Avondale in Avondale, Arizona, structured as a Delaware Statutory Trust. This marks the company’s ninth DST offering since launching the program in 2022.

Keep ReadingShow less