ORLA Update

Legislative Updates on the Federal Front

Federal Court Blocks New Reporting Requirements for Small Businesses
A federal court has temporarily halted the implementation of new reporting requirements under the Corporate Transparency Act (CTA) that were set to take effect on January 1, 2025. These requirements would have mandated small businesses, including restaurants with less than $5 million in annual revenue and fewer than 20 full-time employees, to report detailed ownership and business information to the U.S. Treasury Department.

This matters to restaurant and lodging operators because noncompliance penalties were looming, and the requirements would have added administrative burdens to already stretched small business owners. The delay provides breathing room to better understand and prepare for potential future regulations. It remains to be seen how new Treasury Department leadership in 2025 will handle the CTA and its reporting requirements so operators should stay informed on how these requirements evolve.

AHLA Urges Congress to Protect Consumers
The American Hotel & Lodging Association (AHLA) this week urged congressional leaders to move lodging fee transparency legislation – the House-passed No Hidden FEES Act or the Senate’s Hotel Fees Transparency Act – to President Biden’s desk. These bills would protect consumers by establishing a single and transparent nationwide standard for mandatory lodging fee displays. 

These legislative efforts are aimed at fostering transparency and consumer trust in the hospitality industry. By addressing hidden fees through proposed federal standards, operators can ensure a more straightforward booking process, enhancing guest satisfaction and loyalty. Furthermore, the emphasis on anti-human trafficking measures underscores the industry’s commitment to ethical practices, reinforcing the role of hotels as safe and responsible businesses. In case you weren't aware, ORLA partners with Businesses Ending Slavery and Trafficking (BEST) to provide FREE human trafficking training for association members and their staff. This comprehensive course about human trafficking is just 30-minutes, and it can help protect your hotel or restaurant – maybe even a life. Visit ORLA's website for more information.