Regulatory and Legal Affairs

💸 One Fair Wage's initiative to raise Ohio's minimum wage to $15 and eliminate the tip credit failed to secure enough signatures for the November ballot. The constitutional amendment proposed a minimum wage increase to $12.75 by January 1, 2025, and $15 by January 1, 2026. Tip credit, which allows payment below the minimum wage to tipped workers, is a divisive issue. As of 2024, seven states and cities like Chicago and Washington, D.C., have abolished it. A survey revealed 91% of tipped workers in Ohio are satisfied with the current system.

🏦 Sir Keir Starmer becomes UK’s new Prime Minister on 5 July after Labour's victory, securing over 400 seats against the Conservatives' 120 in the general election. Labour commits to replacing England's business rates system and to reform the Apprenticeship Levy. UKHospitality CEO Kate Nicholls urges swift action on these commitments to aid the sector's growth. Industry voices like Sacha Lord and CAMRA's Nik Antona express optimism and call for government support, including fairer tax and protection for pubs.

🏨 HOTREC's 2024 Hotel Distribution Study highlights the dominance of Booking.com, which now holds a 71% market share, up 10% over the past decade. European hotels increasingly depend on Online Travel Agencies (OTAs), with direct bookings on the decline. The Digital Markets Act (DMA) aims to address this imbalance by implementing fair digital rules for a more equitable industry, potentially enabling hotels to offer better rates on their own channels. Key stats show OTA undercut prices in 40% of cases and electronic distribution accounts for 45% of overnight stays booked online. The study was conducted by HOTREC and HES-SO Valais Wallis, analyzing data from over 3,000 European hotels.

🗑 California Gov. Gavin Newsom signed SB 1524 into law on June 29, exempting restaurants from SB 478's junk fee ban effective July 1. The law, introduced by State Sen. Bill Dodd, mandates restaurants to disclose service fees and their purposes upfront on menus. Supported by the California Restaurant Association, the exemption applies to restaurants, bars, and food services, requiring clear fee displays within a year of the law’s implementation.