ATLANTA, Ga., Feb. 26 – AAHOA President & CEO Cecil P. Staton issued the following statement in response to the National Labor Relations Board’s (NLRB) issuance of its final rule on the joint employer standard under the National Labor Relations Act:
“This final rule is a victory, not just for the thousands of AAHOA members who own franchised hotel properties, but for every small business owner who uses the franchise business model. The disastrous Browning-Ferris Industries decision upended the franchise industry. That hasty and partisan decision failed to acknowledge or reflect the economic realities of the franchise business model and created great uncertainty about an owner’s liabilities regarding control over his or her employees and third-party contractors Today, owners of franchised businesses finally have a joint employer standard that is stable and clear. They can structure their business relationships with a new degree of certainty. The NLRB final rule on the joint employer standard just makes sense. Owners, employees, and unions now have clear lines about how these business relationships are structured. This is vital to the continued viability of the franchise business model, our nation’s economic growth, and job creation.”
