The Voice of the Remodeling IndustrySM
As The Voice of the Remodeling Industry NARI is looking out for our professional interests. Our Government Affairs committee helps our members navigate laws and regulations that might impact their business.
The Committee exists to facilitate members' involvement in advocacy issues and to inform members about newly developing laws and regulations.
Changed Overtime Rule for Salaried Employees
Update: On June 28, 2024, a federal judge in Texas granted a preliminary injunction, halting the rule's implementation and enforcement against the state of Texas as an employer. Private sector employers and other states still remain subject to the new rule. On August 1, 2024, an amicus brief supporting Texas’s arguments was submitted by the attorney general of the state of Arkansas, which was joined by the attorneys general from:
Alabama,
Georgia,
Idaho,
Indiana,
Iowa,
Louisiana,
Mississippi,
Montana,
Nebraska,
Ohio,
Oklahoma,
South Carolina, and
West Virginia.
Background: The U.S. Department of Labor announced on Tuesday, April 23, 2024, the release of a final rule raising the minimum annual salary threshold for overtime pay eligibility. This primarily applies to executive, administrative, and professional employees, commonly referred to as the “White Collar Overtime Exemptions.” Currently, salaried workers making less than $35,568 annually qualify for overtime pay when they work more than 40 hours in a week. Starting July 1, 2024, the threshold will increase from $35,568 to $43,888 per year. It will then increase again to $58,656 on January 1, 2025.
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Read SBLC Alert
Corporate Transparency Act Now in Effect
Many small and large remodeling businesses will be impacted by the requirements of the Corporate Transparency Act (CTA). Learn what you will need to do to comply, as there are significant civil and criminal penalties for not doing so. Learn more in this update from the Small Business Legislative Council.
FTC Announces Rule Banning Non-competes
Update: On August 20, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas ruled that the Federal Trade Commission (FTC) lacks legal authority to implement its “non-compete” rule. A tax firm, Ryan LLC, sued to block the rule in April. The U.S. Chamber of Commerce later joined the case as a plaintiff, as did the Business Roundtable, and two other business groups. Judge Brown concluded that the FTC exceeded its statutory authority in promulgating the rule and that the rule itself was arbitrary and capricious. Therefore, the rule is considered unlawful and, for the moment, is now set aside (i.e., not enforceable). Read the Court’s Memorandum Opinion and Order.
Background: On Tuesday, April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to approve its new rule on non-competes. The new rule essentially bans non-competes for all workers, finding them “an unfair method of competition – and therefore a violation of Section 5 of the FTC Act.” Read more.
Update on Joint Employer Rule
Opponents of the new joint employer standard from the National Labor Relations Board recently scored a small victory on January 12, 2024, with congressional action taken to attempt to rescind the rule. The U.S. House of Representatives voted 206-177 on a Congressional Review Act resolution, which allows legislators to reverse an agency’s action. The NLRB released its rule on the joint employer standard in late October and it took effect December 26, 2023. The resolution now awaits a Senate vote. If it passes, it will go to President Joe Biden, but he has pledged to veto it. Read more.
Pregnant Workers Fairness Act
This new employment law went into effect June 27, 2023. In addition to the Pump for Nursing Mothers Act, these two laws may impact our members' businesses.
NARI is pleased to provide our members with this summary of the impact of these laws (NOTE: NARI member login is required).
DOL Independent Contractor Plan
NARI recently signed on to a letter from the United States Chamber of Commerce (USCOC) opposing a proposed new Department of Labor (DOL) rule regarding classification of independent contractors. According to USCOC, “The proposed rule “would negatively impact employers and independent contractors in a number of ways.”
With continued labor shortages and future economic uncertainty, the use of independent contractors is essential for many businesses in our industry to help fill skilled trade gaps and manage businesses and time schedules appropriately. Creating more cumbersome rules creates unnecessary hardships for businesses and does not promote business growth but instead limits a business’s ability to manage time schedules and costs efficiently and responsibly. Read the letter that NARI signed.
Inflation Reduction Act
In early 2023, NARI's Government Affairs Committee produced a two-page guide for NARI members about the Inflation Reduction Act, explaining its potential impact on remodelers. Click here to download it. (NARI member login required)
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