With President-elect Donald Trump preparing to take office for a second time, some clear signs are emerging of what U.S. hoteliers can expect in terms of changes to labor rules and laws.
In a podcast interview with HNN, Andria Ryan, labor attorney and partner at Fisher Phillips, highlights three major areas of change hoteliers will likely see changes: the U.S. Department of Labor, the National Labor Relations Board and immigration law.
US Department of Labor
At the Labor Department, one major change would be in the recent rule raising the overtime exemption threshold, she said. The rule, which went into effect earlier this year, raised the annual salary threshold to $43,888 starting July 1 from $35,568. A second increase would come Jan. 1, 2025, to $58,656.
She said she knew of many employers in the hospitality industry who were able to absorb the July 1 increase but were worried about the Jan. 1 jump. The change would have taken effect before Trump takes office, which would have made it difficult to reverse.
However, following the interview, a federal district court judge in Texas ruled the Labor Department exceeded its authority in setting the new overtime threshold, the Associated Press reports. A similar situation arose in 2016 when an Obama-era overtime threshold increase was blocked by a federal judge in Texas.
“If it's a negative decision, though, I think the Trump Department of Labor is also not going to appeal anything, like they did the last time,” Ryan said ahead of the judge’s decision.
National Labor Relations Board
The NLRB has been a “very union-friendly organization” during the Biden administration, Ryan said, noting he was the first president to walk a union picket line. Trump did receive support from some labor unions, so she said she doesn’t expect him to toss them aside once he assumes leadership again.
Two major changes that could come through the NLRB are a reversal of its rule on “quickie elections” for union elections in workplaces, and its recent decision on forbidding captive audiences, she said. The banning of captive audience meetings means employers can’t require employees to attend meetings during which the employer can talk to employees about what joining a union means and the employer’s position on unionization.
Immigration
In terms of immigration, there’s still a negative connotation associated with work visas, Ryan said. Even lawmakers who are fairly neutral on immigration tend to hold back on issuing new work visas, such as H2Bs, to see how new political situations play out.
“I think the industry will likely suffer from that kind of mentality as the administration rolls that out,” she said.
As for deportations, the incoming administration’s initial focus has been on deporting criminals, who don’t make up a significant portion of the hotel labor force, she said. What should worry hoteliers is self-deportation, or the practice of immigrants voluntarily leaving the country.
“We’re going to have some folks who are just going to simply say, ‘I better go,’” she said.
That could be because of their own immigration status, or it could be because of a family member, she said. Employers may see the loss of employees, even potentially long-term employees, through self-deportation.
“I know the industry relies on a lot of folks to come in and clean rooms and do a lot of other hard jobs, so I do think ... we're going to face that reality pretty soon,” she said.
To hear more from Andria Ryan on likely changes to labor laws under the incoming Trump administration, listen to the podcast above.