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.
Corporate Transparency Act Deadline to File
Almost all businesses in the United States must file the Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network, (FinCEN), before January 1, 2025. Under the Corporate Transparency Act passed in 2021, the BOI is designed to increase transparency in business ownership and help combat financial crimes, such as tax fraud, money laundering and terrorism financing. Failure to file could result in a fine of $500 a day.
This requirement mostly affects small businesses. If the company employs more than 20 people and has reported more than $5 million in gross receipts and sales to the IRS, is publicly traded or a non-profit, it does not have to file the form.
Visit fincen.gov/boi to file your report. Learn more in this update from the Small Business Legislative Council.
Changed Overtime Rule for Salaried Employees
Update Nov. 15, 2024 - A federal judge in Texas ruled that the Department of Labor’s 2024 overtime rule is invalid. The Department of Labor (DOL) released the rule earlier this year that attempted to implement a new overtime regulation and salary threshold increase. The rule would have required employers to pay overtime premiums to salaried workers who earn less than $1,128 per week, or about $58,600 per year, when they work more than 40 hours in a week, beginning January 1, 2025, and it had already temporarily raised the threshold to approximately $44,000 per year on July 1.
U.S. District Judge Sean Jordan determined that the DOL exceeded its authority by using salary alone to determine overtime eligibility, which bypassed the required “duties test” under the Fair Labor Standards Act (FLSA). The judge also ruled that the DOL’s plan to automatically increase the salary threshold every three years violated the legal process. As a result, the court has restored the previous 2019 salary threshold of $35,568. In light of this decision, businesses should return to the previous salary threshold of $35,568 annually, effective immediately.
If the DOL chooses to propose a new rulemaking to adjust the salary threshold in the future, the process will likely involve further public input and legal review. The Small Business Legislative Council will continue to monitor the situation and we will post any updates to this ruling that may impact overtime eligibility.
Read more
Background: Read SBLC Alert
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.
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).
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)
Contact us at info@nari.org with any questions.