Skip to content

Search

Latest Stories

Former AAHOA chairwoman Panwala testifies against proposed overtime rules change

Speaking on behalf of AHLA, she told a Congressional committee the proposed increase in the overtime threshold could raise costs, limiting employee options

Former AAHOA chairwoman Panwala testifies against proposed overtime rules change

FORMER AAHOA CHAIRWOMAN Jagruti Panwala testified recently before Congress on the Department of Labor’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 American Hotel & Lodging Association, argued that the proposed change would actually limit hotel employees’ opportunities and does not take into account economic differences between regions of the country.

In August, DOL proposed raising the threshold from $35,568 to an estimated $60,209 in 2024 according to AHLA based on the department’s projections. That equals a nearly 70 percent increase, and AHLA said that means all employees making under that amount must be paid overtime for any hours worked over 40 in one week. The DOL proposal also would automatically increase the threshold every three years thereafter based on the 35th percentile of earnings for full-time salaried workers in the lowest-wage census region, currently the South.


AHLA previously said the proposal could restrict opportunities for managerial and workforce development, including remote work, travel, and career advancement. In her testimony before the House Committee on Education & the Workforce Subcommittee on Workforce Protections, Panwala elaborated on the protest based on her experience as principal of Sita Ram LLC, which owns and operates eight hotels in Pennsylvania, Texas, New York, New Jersey and Ohio that employs more than 200 people.

“I'm here today to explain my perspective as a small business owner and a hotel operator, and to describe how the Department of Labor's proposed changes to the overtime rule will have devastating effects on my business, my employees and the lodging industry,” Panwala said. “It is critical to note that the proposal does not simply increase salaries for a few employees at a marginal level, rather than up to 70 percent increase will drastically impact the entire business plan. Beyond compensation, we expect not only a significant jump in direct staffing costs, but also substantial increases in associated labor costs, including payroll taxes, federal and state unemployment, taxes, insurance, and none of which seems to be included in much of the discussion.”

Panwala said the new overtime rules may force employers, including hoteliers, to “take actions that we do not want to take, including actions that could set workers back in their careers.”

“The last thing a small business owner wants to do is to lay off their employees,” Panwala said. “Unfortunately, some hotels may be forced to do so because of this new rule in order to stay in business.”

Also, while some workers may see their salaries increase with the new minimum threshold, Panwala said some will be reclassified from salaried to hourly, making them nonexempt and constraining their access to benefits, hours, potential flexible work arrangements and opportunities for career advancement. She also pointed out that different regions of the country have variations in costs of living and that would lead to uneven effects on the economy by DOL rules.

“In 2023, the first line housekeeping supervisors in New York earned an average annual made of $63,000, while the same position in Texas saw an average earning of $42,000,” she said.

Panwala also said the proposed automatic updates to the minimum salary threshold would create problems for the hoteliers, affecting financial projections and their ability to plan for the future. The threshold could be updated despite whether an economic problem exists, she said.

“In the hotel industry, our employees’ success is our success and this misguided rule by the administration will provide less flexibility, and many will be forced to lay off employees just to stay in the business,” Panwala said. “This is an outcome no one wants. I strongly urge you to consider the adverse implications of the overtime proposed rule on a small business owners and workers when deliberating policy proposals.”

More for you

Marriott International expands global hotel pipeline in Q2 2025

Marriott pipeline hits record 590,000 rooms

Summary:

  • Marriott International ended Q2 with a record pipeline of about 3,900 properties and more than 590,000 rooms.
  • Global RevPAR rose 1.5 percent, including a 5.3 percent gain in international markets.
  • Net income slipped 1 percent to $763 million; 17,300 net rooms were added.

MARRIOTT INTERNATIONAL’S GROWTH continued in the second quarter, according to the company’s recent earnings report. Along with its active pipeline, the company saw rising revenue and launched a new brand.

Keep ReadingShow less
OYO Adds 150 U.S. Hotels in 2025, Plans Another 150
Photo credit: OYO U.S.

OYO adds 150 U.S. hotels, plans 150 more

Summary:

  • OYO added more than 150 U.S. hotels in early 2025 and plans 150 more by year-end.
  • Ten additions have more than 100 rooms, reflecting a focus on high-inventory properties.
  • It is targeting urban and suburban markets in the Sun Belt and Great Lakes regions.

HOSPITALITY TECHNOLOGY COMPANY OYO added more than 150 hotels to its U.S. portfolio in the first half of 2025 and plans to add 150 more by year-end. The additions span Texas, Virginia, Georgia, Mississippi, California, Michigan and Illinois.

Keep ReadingShow less
Choice Hotels campaigns

Choice launches campaigns for extended-stay brands

Summary:

  • Choice launched two campaigns to boost bookings across its four extended-stay brands.
  • Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
  • They will run through 2026 across social media, Connected TV, digital display and online video.

CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.

Keep ReadingShow less
US Hotel Employee Background Checks
iStock

Survey: Employee background checks up for hotels

Summary:

  • U.S. hotels increased background checks by 36 percent in early 2025.
  • The trend follows President Trump’s immigration policies impacting seasonal labor.
  • Immigrants making up a third of the travel workforce.

U.S. HOTEL HIRING managers requested 36 percent more background checks in the first half of 2025 compared with the same period last year, according to Hireology. The move follows President Donald Trump’s immigration crackdown and proposed visa fee hikes affecting seasonal labor.

Keep ReadingShow less
Hotel industry leaders unite at AHLA Summit to support trafficking survivors
Photo credit: AHLA Foundation

AHLA Foundation hosts human trafficking summit

Summary:

  • AHLA Foundation held its No Room for Trafficking Summit and announced Survivor Fund grantees.
  • The summit featured expert panels and sessions on survivor employment and trafficking prevention.
  • Since 2023, the program has awarded more than $2.35 million to 27 organizations.

AHLA FOUNDATION RECENTLY held its annual “No Room for Trafficking Summit” to advance practices and reinforce the industry's commitment to addressing human trafficking through collaboration, education and survivor support. It also announced the 2025–2026 NRFT Survivor Fund grants, which support organizations providing services and resources for survivors.

Keep ReadingShow less