What's Happening?
The American Hotel & Lodging Association (AHLA) has expressed strong support for the American Franchise Act (AFA), a bipartisan bill introduced by Representatives Kevin Hern and Don Davis. The AFA aims to protect the hotel franchising business model by clarifying the joint employer definition under the Fair Labor Standards Act and the National Labor Relations Act. This legislation is designed to provide certainty in employment relationships and support the growth of franchised hotels, which are a significant pathway for women and minority entrepreneurs.
Why It's Important?
The AFA is crucial for the hotel industry as it seeks to preserve the franchising model, which has been instrumental in enabling small business ownership and entrepreneurship. By establishing a clear joint employer standard, the act aims to reduce legal uncertainties that have affected franchisors and franchisees since 2015. This clarity is expected to foster a stable environment for hotel operations, benefiting both employers and employees. The act could also encourage more individuals to pursue hotel franchising, contributing to economic growth and diversity in the industry.
What's Next?
The AHLA is advocating for the swift passage of the AFA, emphasizing its importance in maintaining the integrity of the hotel franchising model. If enacted, the legislation could lead to increased investment in franchised hotels and support the expansion of the industry. Stakeholders, including hotel owners and franchisees, are likely to engage in discussions and lobbying efforts to ensure the bill's success. The outcome of this legislative process will be closely watched by industry participants and policymakers.
