AAHOA Applauds Introduction of Save Local Business Act to Provide Clarity

The Asian American Hotel Owners Association (AAHOA) commended the bicameral introduction in Congress of the Save Local Business Act by Sen. Roger Marshall (Kansas) and House Oversight Committee Chairman James Comer (Ky.).

The bill would provide a clear definition of joint employment under federal labor law by clarifying that two or more employers must have “actual, direct and immediate” control over employees to be considered joint employers.

This includes hiring and discharging employees, determining employee pay and benefits, day-to-day supervision of employees, and assigning individual work schedules, positions, and tasks.

“This bill restores a commonsense definition of a joint employer that provides certainty and stability for our small-business hotel owners,” said AAHOA President & CEO Laura Lee Blake. “The proposed National Labor Relations Board rule would pose complications for franchised properties run by thousands of AAHOA member hoteliers by creating confusion as to whether franchisees’ employees could be deemed to be jointly employed by the franchisors. By clarifying the definition of joint employment, the Save Local Business Act would give small-business hotel owners the predictability they need to invest in their workforce and grow their businesses.”

“AAHOA is grateful for the Save Local Business Act’s recognition of the importance of creating a stable environment for small businesses to grow and thrive,” said AAHOA Chairman Bharat Patel. “The proposed joint employer rule comes at a time when AAHOA members are still working hard to make their businesses profitable once again after the challenges of the pandemic. We urge Congress and the Biden administration to advance this legislation that would help provide certainty for our small-business hotel owners.”

BACKGROUND: In November 2022, AAHOA submitted a formal comment to the National Labor Relations Board raising its concerns about the proposed joint employer standard. AAHOA was also a signatory in the comments submitted by the Coalition for a Democratic Workplace opposing the proposed rule.