ATLANTA, Ga., Jan. 13 – AAHOA, the nation’s largest hotel owners association, commended the Department of Labor’s (DOL) final Joint Employer Rule under the Fair Labor Standards Act.
“America’s hoteliers applaud the DOL’s ruling, for it provides franchise owners with a clear and straightforward joint employer standard. Over 80 percent of AAHOA members own franchised properties. The franchise business model continues to serve as an onramp to economic empowerment for America’s entrepreneurs. Returning to the traditional joint employer standard gives owners the peace of mind that they will remain in control of their businesses,” said AAHOA President and CEO Cecil Staton.
Previous joint employer rulings caused business development and new hiring to slow because of uncertain standards that could have resulted in a franchisor assuming responsibility for a franchisee’s employees. The new ruling’s four-part test clarifies the obligations of the franchisor/franchisee relationship and provides franchise owners with increased certainty about the ownership and control of their businesses.