Regulatory and Legal Affairs

📊 European Employers’ Institute, September 2025: Labor productivity in the EU has grown by just 1% annually over 25 years, while the US saw 1.8% growth. In 2024, EU productivity was 20% below US levels. Key factors: low ICT investment, market fragmentation, business dynamism, skills mismatch, and regulatory burdens. Since 2019, EU productivity growth slowed to 0.6% compared to 1.9% in the US, especially in ICT and business services. This accentuates the need for digital investments and regulatory reform.

📑 Bipartisan members of Congress introduced the American Franchise Act to the U.S. House. The act aims to redefine "joint employer" to absolve franchisors from franchisee labor law liabilities unless they share control over employment terms. This follows a decade of fluctuating standards. Notable changes include the 2015 Browning-Ferris decision and 2020's revised rule. In March 2024, a federal judge blocked an expanded rule. Supported by industry groups, the act seeks stable regulations to boost entrepreneurship.

🍎 Robert F. Kennedy Jr. led the MAHA Commission's "Make Our Children Healthy Again" strategy, released Tuesday. This U.S. plan urges food additive reviews, revised nutrition labels, and clearer definitions of ultra-processed foods. Key initiatives include partnerships with the National Institutes of Health and FDA, updating dietary guidelines, and limiting unhealthy food marketing to children. Since 2003, fast-food chains like McDonald's have included healthier kids' meal options, such as fresh fruit. The Trump administration banned petroleum-based synthetic food dyes in April.

📰 Representatives Kevin Hern (R-OK) and Don Davis (D-NC) introduced the American Franchise Act (AFA) in Washington, D.C., aimed at amending the Fair Labor Standards Act and the National Labor Relations Act. The American Hotel & Lodging Association (AHLA) supports this bipartisan effort to protect the hotel business model. AHLA CEO Rosanna Maietta and Board Chair Mitch Patel highlighted the Act’s significance for franchisors and franchisees, urging for its swift adoption to secure employment frameworks and small business autonomy.

💸 UKHospitality welcomes government’s interim business rates reform report but stresses the need for a maximum discount on the rates multiplier. The government can apply a 20p per pound discount, crucial for hospitality properties under £500,000 rateable value. UKHospitality CEO Kate Nicholls advocates for this ahead of November's Budget, highlighting potential rateable value hikes in April. She also calls for a zero rate for properties over £500,000 and transitional relief to mitigate large value increases.

🏨 WASHINGTON, D.C.—On the failure to repeal Los Angeles' minimum wage ordinance, AHLA President Rosanna Maietta stated that thousands of voters believe it will harm jobs and hotel viability, cut tax revenue, and impact the 2028 Olympics. The mayor is urged to find a solution swiftly to prevent these issues.

📝 London may face a £110 million loss this week due to a tube strike, says UKHospitality. Most Underground lines are closed, affecting commuters and resulting in consumer cancellations. The strike, led by the RMT union over pay issues, may disrupt services until Friday. UKHospitality Chair, Kate Nicholls, highlights the burden on businesses already dealing with £3.4 billion in annual costs. UKHospitality, representing over 130,000 venues, contributes £93 billion annually to the UK economy and employs over 3.5 million people.

🏨 Event Hotels acquires the Keystone Portfolio of 17 hotels in Germany, marking a major investment in its 30-year history. The hotels, operating under Ibis and Mercure brands, include 2,021 rooms across cities like Bremen, Frankfurt, and Munich. The largest, Mercure Koblenz City, has 168 rooms. Legal support was provided by McDermott Will and Schulte. The acquisition focuses on guest experience and technical upgrades, promising risk diversification and steady cash flows. Event Hotels operates over 80 properties in Europe.

💰 President Trump signed a law on July 4, making 2017 tax provisions permanent for hoteliers. Key provisions include: Pass-through deduction permanency for small-business owners, 100% bonus depreciation, no tax on tips benefiting 800,000 industry workers until 2028, and preserving Section 1031 for capital gains deferral. AHLA's advocacy ensured no new harmful tax increases for hoteliers. This provides tax certainty, allowing reinvestment and economic growth. AHLA remains focused on further industry policy goals.