How the Dignity Act offers labor relief

NATIONAL REPORT – The Dignity Act of 2025 may offer something rare – relief from labor-related challenges.

If this bill becomes law hotel operators will finally have some leverage in the fight to realize a stable employment base. While it is still making its way through Congress, early preparation may provide those with a proactive approach a true competitive advantage.

The labor gap

From a business standpoint, there is an absolute mismatch between hotel occupancy rates and hotel staffing levels. Even as those occupancy rates are rebounding since the pandemic, the number of workers has remained stubbornly low, well below pre-pandemic norms.

In 2025, the American Hotel & Lodging Association (AHLA) said that 65% of hotels continue struggling to fill open positions. The shortage of workers itself is compounded by high turnover, chronic absenteeism and rising wage costs.

Some hotel groups rely more on seasonal or temporary visa programs like the H-2B or J-1. The problem is that these are limited; they’re also oversubscribed and unpredictable. Many have yet to explore other immigration-linked workforce solutions, especially those that are integral to the Dignity Act.

Legal workforce already here

If passed and signed into law, the most immediately impactful provision of the Dignity Act is the Dignity Program. This offers legal status and work authorization to undocumented immigrants already living in the U.S. That is assuming that they register with the government, pass a background check, and meet strict conditions as required by the bill.

Here’s how it works:

• Eligible individuals must have been physically present in the U.S. since December 31, 2020.

• They must pay $7,000 in restitution over seven years, check in regularly with DHS, stay employed or enrolled in school for at least four years, and remain in good legal standing.

• Participants cannot access federal benefits, making the program politically and fiscally conservative.

This is important because tens of thousands of undocumented individuals already work in the hospitality industry, mostly through informal roles or labor contractors. The Dignity Act allows them to transition into full legal employment, stabilizing staffing without overseas recruitment, expensive sponsorship, or visa lotteries.

Hotel operators shouldn’t wait for the bill to pass. The more prepared they are on the day that happens, the better they will be positioned to benefit from the bill. Hotel operators should begin evaluating now which existing staffing challenges could be solved if undocumented workers were allowed to transition to legal status under the Dignity Program.

Mandatory E-Verify

The Dignity Act would require all U.S. employers to use E-Verify, DHS’s electronic work authorization system. Within 18 months, businesses with 20-499 employees, including most independent and mid-sized hotels, must comply.

For hotel operators, this shift will be inevitable if the bill passes and preparation is key. Start now by working with legal and HR teams to modernize hiring and avoid any compliance risks. Prepare for E-Verify implementation, especially if your current hiring includes informal networks or handwritten I-9 forms.

Workforce upskilling grants

Yet another important provision of the Dignity Program requires participants to make a financial contribution that supports the American Worker Fund. This fund is a grant program for training U.S. workers for in-demand jobs through states, nonprofits, and employers.

This could be a game-changer for hotels in need of a stable pipeline for housekeeping apprenticeships; culinary and kitchen management tracks; and front desk and hospitality coordinator roles.

How it works:

• Each Dignity Program participant contributes to a fund that retrains or upskills at least one U.S. worker.

• Grants can cover tools, uniforms, transportation, and childcare—addressing common barriers to hotel employment.

• Programs can be run through community colleges, workforce boards, or employer-led partnerships.

Hotel owners can get ahead of the curve now by collaborating with state hotel associations, training providers, or workforce boards to begin building eligible programs now. That way they’ll be grant-ready if the law is enacted.

Faster visa processing

While the Dignity Act wouldn’t expand visa caps, it would fund major improvements to government systems that process employment-related immigration applications.

It appropriates $225 million to the Department of Labor’s Office of Foreign Labor Certification (OFLC) and $2.56 billion to USCIS to reduce processing delays across immigration benefits.

For hotel operators that have avoided the EB-3 or H-2B visas due to long timelines, this funding could shorten the path to approval, making these tools viable again for longer-term planning.

It’s critical to stay in touch with legal or agency partners to understand how these improvements could impact labor strategies in 2026 and beyond.

What to do now

Of course, there’s always uncertainty when it comes to unapproved legislation. Regardless, this proposal includes the practical tools that hotel operators can use, that is, if they prepare in advance.

• Workforce mapping: Assess which current workers might benefit from the Dignity Program if it becomes law.

• Compliance readiness: Begin preparing for mandatory E-Verify now, especially if your hotel has between 20 and 499 employees.

• Partner engagement: Reach out to training providers, local colleges, and workforce boards to explore potential grant partnerships under the American Worker Fund.

• Policy tracking: Stay informed. The Dignity Act has bipartisan sponsors and is drawing serious attention from business and immigration stakeholders alike.

Navigating these historic labor shortages has been a drag on the hospitality business for years, especially those years since the pandemic. The Dignity Act of 2025 is more than a policy proposal, it’s a potential toolkit for workforce stabilization that could finally help these businesses overcome the mounting challenges that come along with a deep shortage of workers.

With access to a ready-to-work population, new training grants, and fast immigration processing, this legislation could be transformative for hospitality hiring. The businesses that act now won’t just stay compliant–they’ll gain a major edge.

Contributed by John Dorer, CEO, eb3.work, New York City

The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today by Northstar or Northstar Travel Group and its affiliated companies