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Lodging

Hotel Industry Hails Overtime Ruling, DHS H-2B Visa Hike

By Chris Davis / November 19, 2024 / Contact Reporter
Business Travel News on X

The U.S. Department of Homeland Security will make nearly 65,000 additional H-2B worker visas available in the U.S. government's 2025 fiscal year, in addition to the 66,000 mandated by Congress, the agency announced Friday.

Meanwhile, also on Friday, a U.S. District Court in Texas invalidated a U.S. Department of Labor rule set earlier this year expanded the pool of workers eligible for overtime when they work more than 40 hours in a week.

The American Hotel & Lodging Association hailed both moves as steps to ease the industry's post-pandemic labor crunch. 

DHS's move will make available an additional 64,716 H-2B visas, which enable foreign workers to work in the United States on a temporary or seasonal basis. That figure is the maximum permitted by Congress, DHS said. The 2025 fiscal year began Oct. 1

"We welcome this decision, while urging Congress to step in and create a more predictable system based on the need for workers instead of the arbitrary, outdated H-2B visa caps in place today," said AHLA president and CEO Rosanna Maietta, who joined the industry group last week, in a statement. "We look forward to working with members of Congress to achieve just that."

Meanwhile, U.S. District Court Judge Sean Jordan on Friday struck down a Department of Labor rule, enacted in July, that increased the compensation threshold under which workers must be paid overtime when they work more than 40 hours in a week from $35,568 to $43,888 in July 2024, then to $58,656 on Jan. 1, 2025, with automatic increases set every three subsequent years. Jordan ruled the Labor Department exceeded its authority in making the new thresholds, which will revert to $35,568.

AHLA said it did not oppose the first increase, which it called "an appropriate adjustment to account for inflation" but did oppose the second increase and the planned automatic adjustments. Those, it said in a statement, "would have dramatically increased costs and made it much more difficult for small business hoteliers to operate their properties."

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