WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance

WLA’s Board Supports Lawsuit Challenging Franchise Language in Seattle Wage Ordinance

(June 16, 2014)  The Board of Directors of the Washington Lodging Association today announced its opposition to the franchise language in the City of Seattle’s recently adopted wage ordinance and its support for the lawsuit filed last week in U.S. District Court by five Seattle franchisees and the International Franchise Association.

Among the five franchisees who filed the lawsuit seeking to remove discriminatory language from the ordinance are WLA members Michael Park, General Manager and owner of a Comfort Inn in Seattle and president of the Korean American Hotel Owners Association; and Ronald Oh, General Manager and an owner of a Holiday Day Inn Express in Seattle.

WLA’s support for the lawsuit comes on the heels of an announcement last week by the lodging industry’s national association – the American Hotel & Lodging Association – that it also supports the Seattle franchisee lawsuit.

“The Washington Lodging Association finds it absurd that the family-owned hotels making up the vast majority of our industry would be considered large employers under Seattle’s new ordinance simply because they choose to affiliate with national chains,” said Jan Simon, President and CEO of the Washington Lodging Association. “In Washington State, nearly 80 percent of lodging establishments are affiliated with a franchise or brand. The city’s minimum wage ordinance is ill-conceived and would be devastating for the city’s lodging industry.

“Most hotel owners in Seattle are small business owners who have put their livelihoods on the line, and WLA is committed to protecting their ability to operate their businesses successfully,” Simon said. “The WLA Board of Directors supports the legal action taken in U.S. District Court by Seattle franchisees and the International Franchise Association to protect the rights of franchise business owners.”

The Washington Lodging Association is the state’s only non-profit trade and professional association dedicated to the interests of Washington’s lodging industry.  It has served owners, operators and employees of large and small properties all across the state since 1920, and counts more than 500 lodging establishments with more than 40,000 guestrooms, and more than 125 allied businesses who serve the lodging industry, in membership.

Learn more about the IFA lawsuit here.

Read WLA press release concerning Seattle taxpayers being forced to fund expensive outside counsel for the City’s attempt to defend discrimination of franchisees in the recently adopted wage ordinance.