The National Labor Relations Board abandoned a proposed rule that would have required small businesses to display posters advertising employees’ right to form a union.

The National Lumber and Building Material Dealers Association (NLBMDA) applauded the decision that the trade group said would have required nearly 6 million employers to post an 11-by-17 inch notice regarding employee rights to unionize.

"The NLRB clearly overstepped its authority with the Poster Rule," says Michael O'Brien, president and CEO of NLBMDA. "NLBMDA is pleased that the NLRB will not continue its misguided pursuit of the rule and this is good news for lumber and building material dealers."

The labor relations board lost two court cases brought by business-related trade groups over the poster rule in the spring of 2013. One decision before the U.S. Circuit Court of Appeals in Richmond, Va., ruled that the NLRB lacked authority under the National Labor Relations Act to force employers to display the poster.

Another decision by the D.C. Circuit Court overturned the regulation because it violated the free speech rights of employers. The regulation had been suspended pending the outcome of the legal wrangling. The NLRB decided not to appeal the decisions.