AB 1074 kicks family hotels when they’re down

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SACRAMENTO, Calif .– (COMMERCIAL THREAD) – The California Hotel and Lodging Association today called on state legislative leaders to reject AB 1074, an overbroad attempt to dictate hiring practices for small businesses, including the majority of the 6,000 hotels state owned and managed by local families.

AB 1074, as drafted, states that small businesses and hotel operators who contract out services will no longer have control over suppliers and the employees of suppliers they can hire.

“AB 1074 is a solution looking for a problem,” said Lynn S. Mohrfeld, president and CEO of the California Hotel and Lodging Association. “Its implementation would add an unnecessary burden to small family businesses, which already suffer from the greatest economic challenges of their lives. ”

The bill, which is expected to be submitted to the Senate Appropriations Committee when the legislature returns on August 16, does not clearly define which businesses and services should be regulated, creating misinterpretations that are confusing for all, in particular, for small hotel operators without the means to ensure compliance. Most California bed and breakfast operators have only a few employees and outsource most of the services, which under AB 1074 will be forced to hire only employees of former vendors despite their weaknesses. performance.

Many California limited-service hotel operators have struggled or failed to survive pandemic shutdowns as they faced extraordinary financial and regulatory burdens. AB 1074 is expected to push back more small hotel owners, hurting the state’s premier industry and its workers as they embark on the long and uncertain road to economic recovery.

The CHLA recommends that AB 1074 be rejected out of hand.

“The irony here is painful because this attempt to dictate the hiring practices of small businesses will hurt the employees its authors want to protect and will certainly hurt family businesses, just as we begin to recover from 17 months of pandemic shutdowns,” Mohrfeld said.

About the California Hotel and Lodging Association

The California Hotel and Lodging Association is the primary resource and spokesperson for more than 6,000 hotels, motels and boutique inns in California employing more than 235,000 workers. CHLA, established in 1893, is the largest association in the state accommodation industry in the country and is a partner of the American Hotel & Lodging Association. For more information, visit www.calodging.com.


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