Regulatory and Legal Affairs

🧪 The U.S. Department of Health and Human Services announced a phase-out of synthetic food dyes under Trump's administration. HHS Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary will provide details on Tuesday. Before 2025, FDA approved dyes like Blue 1, Blue 2, and Red 40. In January, the FDA decided to ban Red No. 3 by 2027. California and West Virginia passed laws restricting synthetic dyes. Kennedy met with food manufacturers without pushback on removing dyes. A 2021 study linked synthetic dyes to ADHD in children.

📈 European sectoral employers support the establishment of an EU Talent Pool to match employers with third country national jobseekers, addressing skills and labour shortages and demographic challenges. They welcome the Council's general approach (10602/24) and the European Parliament's position (2023/0404(COD)) on the proposed Regulation. Priorities include a voluntary tool for all skill levels, participation of social partners in the steering committee, potential for accelerated immigration procedures, and awareness campaigns. A call is made for a rapid compromise agreement and commitment to support implementation. (Date: Wednesday, 16 April 2025)

📦 In Los Angeles, the tourism industry, one of the top five employers supporting over 540,000 jobs, generated $40 billion in local business sales and $290 million in transient occupancy tax (TOT) revenue in 2023. Despite this, L.A. faced a $14.3 million TOT budget shortfall in FY 2023-2024 and a $13.9 million shortfall by midyear FY24-25. The industry has only reached 79% of 2019 levels, lagging behind other major U.S. cities. Upcoming hotel operational restrictions could worsen TOT shortfalls, threaten small business owners, and risk thousands of job losses ahead of the 2026 World Cup and 2028 Olympics. Proposed legislation like the Worker Minimum Wage Ordinance may lead to the loss of nearly 15,000 hotel jobs, $169 million in tax revenue, and discourage $342 million in hotel construction spending.

💸 WASHINGTON, D.C. – American Hotel & Lodging Association (AHLA) President & CEO Rosanna Maietta applauded Congress for passing a budget resolution. The resolution prevents a tax increase on American workers and supports small businesses in the hotel and lodging industry, vital as they recover from COVID-19 impacts. AHLA looks forward to further collaboration with lawmakers to benefit hotel operators and employees.

🏨 In 2025, a comprehensive guide titled "Hotel Tax Explained" provides essential information on hotel taxes, including various types, rates, and rules worldwide. It serves as a vital resource for travelers and hoteliers to manage tax compliance effectively. The content was authored by Vanshikha Dhar and published on Hotelogix Blog, known for offering tips and trends in the hospitality industry.

💰 Congressional Democrats, led by Sen. Bernie Sanders, introduced the Raise the Wage Act to Congress on Tuesday, aiming to raise the national minimum wage to $17 an hour over five years and eliminate subminimum wages for tipped, disabled, and youth workers over seven years. The current federal minimum wage of $7.25, last increased in July 2009, would more than double by 2030. The legislation faced a party-line vote during the weekend. Sanders cited that over 60% of workers live paycheck to paycheck. Previously, a $15 minimum wage proposal was included in President Biden’s $1.9 trillion COVID-19 relief plan in 2021 but failed to pass. The Raise the Wage Act has the support of Rep. Robert C. Scott (D-Va.), 32 Senators, 142 Congressional Representatives, and various organizations. The restaurant industry has concerns over job losses and the elimination of the tipped wage, currently at $2.13.

🔒 On March 19, 2025, Accor Management US Inc., through its Fairmont Hotels & Resorts brand, faced a lawsuit in the U.S. District Court for the Central District of California. Plaintiff Natalie Gianne accused the company of sharing users' data with social media platforms without consent, violating California's privacy laws. The company allegedly used this data for enhanced ad targeting, based on website visitor analytics, without acquiring user consent. This case emphasizes the importance of updating website documentation and obtaining user consent to comply with the California Invasion of Privacy Act (CIPA).

🛴 Boston City Council passed a bill requiring third-party delivery companies to acquire city permits and additional insurance for drivers, following Mayor Michelle Wu's February filing due to residents' concerns over traffic issues. Passed in an 11-2 vote, the ordinance mandates extra insurance coverage and safety data submission. The new rules, effective January 2026, impose a $300 fine per order for non-compliance. A controversial 15-cent delivery fee was removed from the bill. DoorDash and Grubhub expressed relief over the fee's removal but have ongoing concerns. The ordinance awaits Mayor Wu's signature.