NAHB Communications Federal Judge Blocks Overtime Rule In a major victory for NAHB, a federal judge in Texas on Nov. 22 granted a preliminary injunction to delay implementation of the Department of Labor’s new overtime rule. The rule, which was scheduled to take effect Dec. 1, would double the minimum salary limit from $23,660 to $47,476. NAHB joined other business groups in filing a legal challenge to the overtime rule on Sept. 20 in the U.S. District Court for the Eastern District of Texas. In addition, 21 states have also filed suit challenging the rule and the two lawsuits have been consolidated. While the injunction is only temporary, the ruling by Judge Amos Mazzant sent a strong signal that he could likely side with NAHB and our business coalition. Had the rule gone into effect on Dec. 1, it would have had significant ramifications for many employers, including home building firms and not-for-profits, such as HBAs. According to NAHB analysis, nearly 100,000 construction supervisors would be eligible for overtime under the new rules. As NAHB keeps working toward permanent relief, we will continue to provide our members with the tools they need to comply with the new overtime requirements in the event that the court rules against NAHB, our business coalition and the 21 state attorneys general. For more information, contact Suzanne Beall at 800-368-5242 x8407. NAHB’s Legal Victory Blocks “Persuader” Rule NAHB scored an important legal victory on Nov. 16 when the U.S. District Court for the Northern District of Texas granted the association and other groups a permanent stay on the Department of Labor’s final “persuader” rule. The rule would unfairly discourage employers from receiving confidential legal advice concerning union organizing because it required employers to disclose the names of lawyers and consultants to the Department of Labor (DOL). In short, unions were seeking to prevent employers from talking to their lawyers in response to union organizing. The court ruling essentially puts an end to the union effort. With the permanent judgment now in place, the persuader rule will not go into effect unless DOL appeals and a higher court overrules the lower court decision. For more information, please contact Amy Chai at 800-368-5242 x8232 or Suzanne Beall at x8407. 10
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