Skip to content

Search

Latest Stories

NLRB issues final ruling on joint-employer definition

AHLA, calling it a ‘partisan gambit,’ plans to continue protesting the new rule

NLRB issues final ruling on joint-employer definition

THE NATIONAL LABOR Relations Board has issued what it says is its final ruling on the standard for determining joint-employer status under the National Labor Relations Act, essentially broadening the definition of joint employer to any “entity that has an employment relationship with the employees.” However, the American Hotel & Lodging Association said the ruling is “devastating” for hotels and it is exploring legal options for challenging the NLRB decision.

NLRB’s new standard defines a joint employer to be any company that shares or codetermines one or more essential terms and conditions of employment. Those include:


  • Wages, benefits, and other compensation.
  • Hours of work and scheduling.
  • The assignment of duties to be performed.
  • The supervision of the performance of duties.
  • Work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline.
  • The tenure of employment, including hiring and discharge.
  • Working conditions related to the safety and health of employees.

The final rule rescinds the 2020 final 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. The board says the new rule “more faithfully grounds the joint-employer standard in established common-law agency principles.”

“The board’s new joint-employer standard reflects both a legally correct return to common-law principles and a practical approach to ensuring that the entities effectively exercising control over workers’ critical terms of employment respect their bargaining obligations under the NLRA,” said Chairman Lauren McFerran. “While the final rule establishes a uniform joint-employer standard, the Board will still conduct a fact-specific analysis on a case-by-case basis to determine whether two or more employers meet the standard.”

A ‘partisan gambit’

The new rule could impact the usual franchise relationship currently prevalent in the hotel industry as it could allow franchisers and franchisees to be held jointly liable for violations of the National Labor Relations Act and have joint bargaining responsibilities for unionized employees, according to a statement from AHLA.

The new joint-employer rule becomes effective Dec. 26. AHLA, which previously submitted comments to the NLRB protesting the rule change, said the new rule will limit opportunities for small businesses and entrepreneurs and threaten the franchising model.

“NLRB’s actions today are devastating to the hotel industry and the millions of people we employ. This is a partisan gambit to force unions on hotel franchisees and their employees as well as countless other small businesses and workers across the country,” said Chip Rogers, AHLA president and CEO. “NLRB’s goal is to coerce businesses to the bargaining table with workers they do not actually employ to artificially increase unionization. This dramatic shift will effectively dismantle the franchise business model – the single greatest avenue to successful entrepreneurship in American history and a system that has helped our industry build millions of well-paying jobs and careers. AHLA is reviewing opportunities to legally challenge this regulation to restore certainty for America’s lodging industry.”

The NLRB received more than 13,000 comments that it reviewed and considered in drafting the Final rule.

More for you

Red Roof partners with FreedomPay to streamline payments in 700+ U.S. hotels
Photo credit: Red Roof

Red Roof taps FreedomPay for 700+ hotels

Summary:

  • Red Roof is contracting with FreedomPay to provide payments across its 700+ U.S. hotels.
  • The company will gain an integrated solution, improved service, cost savings and efficiency.
  • The company is investing in people and technology to advance the brand, president Zack Gharib told Asian Hospitality.

RED ROOF IS contracting with FreedomPay to provide payments across its portfolio of more than 700 hotels in the U.S. The company will receive an integrated payment solution, upgraded service, cost savings and operational efficiency, according to a statement.

Keep ReadingShow less
Gen Z Shifts Hotel Shopping: Tech, Experiences & Values

Survey: Gen Z redefines hotel shopping

Summary:

  • Younger consumers are redefining hotel discovery through platform-hopping and peer input, according to SOCi.
  • Fragmented search and discovery are reshaping how trust is built.
  • About one-third of consumers aged 18–34 report less brand loyalty than a year ago.

GEN Z IS RESHAPING hotel shopping through multiple platforms, peer input and real-time research, according to SOCi, a marketing platform for multi-location businesses. Unlike previous generations who relied on a single search engine or map app, the younger consumer moves through a series of smaller decisions - starting on TikTok, checking Reddit or Yelp and ending with a Google Maps search.

Keep ReadingShow less
Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less
Peachtree Group's Residence Inn by Marriott under construction in downtown San Antonio, topping out milestone reached, June 2025

Peachtree tops out San Antonio Residence Inn

Peachtree Hotel to Open in Summer 2026 with 117 Extended-Stay Rooms

PEACHTREE GROUP HELD a “topping out” for its Residence Inn by Marriott in downtown San Antonio, Texas, marking completion of the structural phase of the 10-story, 117-room hotel. The property, co-developed with Austin-based Merritt Development Group, is scheduled to open in summer 2026.

The extended-stay hotel will be owned by Peachtree and managed by its hospitality management division, the company said in a statement.

Keep ReadingShow less
Air India plane crash 2025
Photo by Sam PANTHAKY / AFP

Air India reducing flights after deadly crash

AIR INDIA WILL reduce international service on widebody aircraft by 15 percent through at least mid-July, according to media reports. The decision comes less than a week after the June 12 crash of an Air India airliner carrying 230 passengers and 12 crew members in Ahmedabad, India, that killed 246 but left one survivor among the passengers.

The airline said the reduced service due to the safety inspection of aircraft and ongoing geopolitical tensions in the Middle East, which have disrupted operations, resulting in 83 flight cancellations over the past six days, according to ABC News. Passengers can either reschedule their flights at no additional cost or receive a full refund.

Keep ReadingShow less