This Week in Hospitality & Retail — Washington (#7, 2026)
DOL proposes rule changes to worker classification; IRS requests comment on tip reporting for food service; FDA updates tobacco retailer training burden estimates; Bureau of Reclamation seeks recreation survey renewal; White House reports visa and benefits reforms
This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning hotels, restaurants, casinos, gaming operations, event and sports venues, cruise lines, theme parks, ski resorts, outdoor spaces, RV and caravan parks, and all hospitality, travel and tourism professionals. Once a week, we break down the most important updates in this space in under five minutes.
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Dates: 2026-02-22 to 2026-02-28
📋 In This Week's Newsletter
• 🇺🇸 Federal Government News
• 📜 Legislative Updates
• 📚 What We're Reading This Week
Federal Government News
Department of Labor Proposes Revised Rule on Employee and Independent Contractor Classification
The Department of Labor issued a proposal on February 27, 2026, to rescind the 2024 Rule concerning worker classification under the Fair Labor Standards Act (FLSA) and replace it with a modified version of its 2021 Rule. The 2021 approach highlights two principal factors—the degree of control over work and the opportunity for profit or loss—as primary determinants, with skill required, permanence of the relationship, and integration into production as supplementary factors. Illustrative examples are included to clarify applications. The proposal is expected to reduce compliance costs and litigation and may increase the number of independent contractors. Related regulatory changes are also proposed for MSPA and FMLA to align definitions. The Department estimates one-time regulatory familiarization costs of $488.2 million, with expected annual cost savings of $682.7 million.
Sources: www.federalregister.gov

IRS Seeks Public Comment on Employer-Designed Tip Reporting Program for Food and Beverage Industry
The Internal Revenue Service announced a request for comments regarding the information collection requirements for the Employer-Designed Tip Reporting Program (EmTRAC), which applies to businesses in the food and beverage industry employing staff who receive cash and charged tips. This ongoing program aims to assist employers in complying with Section 6053(a) of the Internal Revenue Code, which mandates the monthly reporting of all tips by employees. The agency estimates 20 responses annually, with an average response time of 44 hours per respondent. The current review is an extension; no changes have been proposed. Written comments are due by April 27, 2026.
Sources: www.federalregister.gov
FDA Revises Burden Estimate for Tobacco Retailer Training Programs
On February 25, 2026, the Food and Drug Administration submitted revised estimates to the Office of Management and Budget for the annual recordkeeping requirements related to tobacco retailer training programs. The guidance outlines the recommended elements for retailer training, such as age verification, refusal guidelines, and maintenance of written policies, and encourages regular employee training and compliance checks. New data from the Census Bureau inform updated numbers of establishments and burden hours, resulting in a decrease from 2,183,780 to 1,043,296 estimated annual hours for compliance. These programs are voluntary and not subject to FDA approval at this time. Written comments are invited through March 27, 2026.
Sources: www.federalregister.gov
Bureau of Reclamation Requests Renewal of Recreation Survey Information Collection
The Bureau of Reclamation seeks public comment on the renewal of its information collection for Recreation Survey Questions, which gather visitor data for more than 240 designated recreation areas managed across 17 Western states. The surveys are used to detect visitor trends and preferences and inform recreation program development. The agency expects 696 respondents annually, with an estimated total burden of 140 hours. Updates to demographic questions reflect recent federal directives and statistical policy changes. The comment deadline is March 27, 2026.
Sources: www.federalregister.gov
White House Reports Series of Border Security and Immigration Policy Reforms
The White House provided an overview of actions taken to secure U.S. borders, including reductions in illegal migration, expanded ICE capacity, and reforms to visa issuance and eligibility for benefits. Reports detail nearly three million illegal aliens leaving the U.S. in 2025, cessation of catch-and-release, and reassessment of immigrant visa processing for high-risk countries. Additional measures include benefit eligibility checks, visa revocations, and suspensions of refugee resettlement programs. The administration cited a 56% decline in fentanyl trafficking at the southern border for 2025, linked to new legislative and enforcement efforts.
Sources: www.whitehouse.gov
Legislative Updates
America's National Churchill Museum National Historic Landmark Act
Bill 1945, currently in the House, aims to designate America's National Churchill Museum as a National Historic Landmark. The legislation was placed on the Union Calendar, Calendar No. 442, for further consideration.
Sources: www.congress.gov

What We're Reading This Week
- Restaurants emerge as bright spot for US job growth as consumers seek treats: Restaurants have contributed significantly to recent U.S. job growth as consumer demand rises.
- Americans are suddenly flocking to this Montana community. Here's why.: Big Sky, Montana, has seen a surge in travel interest among Americans due to new attractions.
- Travel: The New York Times covers current trends and developments in global travel, with updates on destinations and consumer preferences.
- Five‑star hotels lead price increases in Milan during Olympics: Milan's five-star hotels are raising rates as Olympic events drive accommodation demand.
- Florida’s still reinventing spring break: Florida continues to modify its approach to spring break events amid evolving travel patterns.