Regulatory and Legal Affairs

💸 Senate and House passed the No Tax on Tips Act, proposing a tax deduction up to $25,000 for employees earning $160,000 or less, adjusted for inflation. Over 400 restaurant operators urge inclusion of kitchen staff to avoid penalizing independent restaurants. Critics, including the Economic Policy Institute, warn the act may not benefit lower-wage workers effectively. The legislation retains some tax obligations and could hinder career advancement and widen income gaps in the restaurant industry.

🏨 National hotel associations from 25+ European countries are launching a collective action against Booking.com, supported by HOTREC. The legal move follows the ECJ ruling on 19 September 2024, declaring Booking.com's parity clauses as violations of EU competition law. Hotels can reclaim commissions paid from 2004-2024. The deadline to register is 31 July 2025. The action is coordinated by Stichting Hotel Claims Alliance, with proceedings in the Netherlands. More details at www.mybookingclaim.com.

💰 USALI, first developed in 1926, is a standardized accounting system for the hotel industry, crucial for financial transparency and benchmarking. The 12th edition, effective January 1, 2026, includes updates for sustainability, all-inclusive hotels, labor cost transparency, and brand/operator cost reporting. Aligned with GAAP but also addressing IFRS, USALI aids in securing financing and improving comparability. Proper implementation in PMS systems is critical to reduce errors and improve financial decision-making.

💰 Sen. Ted Cruz introduced the "No Tax on Tips Act" in January, passed unanimously in the Senate on Tuesday. If enacted, it offers a $25,000 tax deduction for tipped employees earning $160,000 or less. However, 37% of tipped workers in 2022 did not qualify for federal income tax. The bill requires employer payroll taxes and state taxes on tips. Nevada has the highest per capita tipped workers, which Sen. Catherine Cortez Masto emphasized in her support.

🚨 Charles Seifert, founder of ItBox, suggests the Building Safety Act 2022 may be amended in autumn 2025 to include hotels. The Act currently covers buildings over 18 meters or with seven or more stories with at least two residential units. The Building Safety Regulator (BSR) has assessed few of the 14,000 residential buildings. If hotels are included, owners must prepare for potential compliance complexities to avoid penalties, including criminal charges and fines.

💼 Location: Brussels, Belgium. HOTREC seeks a Public Affairs Manager for digital and economic policy advocacy at the EU level. The role involves working with EU institutions, stakeholders, and HOTREC’s 47 member associations. Applicants need 5+ years of relevant experience. Deadline: 2 June 2025. Apply with a CV and cover letter to Sergey Golyshin at [email protected]. More details on the Euractiv JobSite.

🛡 U.S. restaurant operators report increased immigration enforcement, especially in Washington, D.C., and Nashville. DHS conducted "worksite enforcement operations" on over 100 D.C. businesses, inspecting I-9 documentation. At least nine restaurants were visited last week, with some operators not cooperating without a warrant. Restaurant Association of Metropolitan Washington (RAMW) confirmed no arrests from these visits and reached out to Homeland Security for guidance. In Nashville, ICE activity resulted in at least 96 detainments, leading to decreased restaurant business and closures. Nashville's Hispanic Chamber of Commerce is offering I-9 compliance training. Nashville Mayor Freddie O'Connell mandated reporting interactions with federal immigration to his office within one day. The Trump administration aims to deport one million immigrants annually.

New Hospitable report reveals hosts are confidently competing with larger operators — and aren’t interested in handing over control SAN FRANCISCO, 12 MAY – A brand new report from property management…

📑 UK, 12 May 2025: The Labour government unveiled immigration reforms, including raising the skilled worker threshold to RQF 6 (graduate level) and increasing salaries. The Immigration Skills Charge will rise by 32%, and the settlement period extends to 10 years. New English language requirements will apply broadly. Less than 10% of hospitality roles qualify for skilled visas, impacting sectors like care and hospitality. Temporary Shortage List roles must meet specific criteria for visa access.