Why is OnGUI not working?

OnGui in not working if I have the Hover function updated in Update. The print shows that showLabel is changing from false to true as I hover over the object but the label will not come up. Here are the two scripts that are talking to each-other:

Interactee.js

var Interactable : boolean = true;

private var showLabel : boolean;

function Update(){
	print (showLabel);
	Hovers(false);
}

//Is the player interacting with the this object???
function Interact(Interacting : boolean){
	if (Interactable){
		if (Interacting){
			//Action();
		}
	}
}

function Hovers (Hovering : boolean){
	if(Hovering){
		showLabel = true;
	}else{
		showLabel = false;
	}
}

//The Action you want to happen...
/*function Action(){
	//Make the item a child of backpack...
	this.transform.parent = backpack.transform;
}*/

//While hovered show something...
function OnGUI(){
	if (showLabel){
		GUI.Label (Rect (Screen.width*0.5,Screen.height*0.65,100,50), "Hovering");
	}
}

Interactor.js

var distance = 10;
var Interacting : boolean = true;
var Hovering : boolean = true;

//When "Interact" button is pressed do function Interact... 
function Update(){
	Hover();
	if (Input.GetButtonDown("Interact")){
		Interact();
	}
}

//Raycast
function Interact(){
	var hit : RaycastHit;
	var ray : Ray = Camera.main.ScreenPointToRay(Vector3(Screen.width*0.5, Screen.height*0.5, 20));
	
	if (Physics.Raycast (ray, hit, distance)){
		hit.transform.SendMessage("Interact", Interacting, SendMessageOptions.DontRequireReceiver);
	}
}

//Raycast
function Hover(){
	var hit : RaycastHit;
	var ray : Ray = Camera.main.ScreenPointToRay(Vector3(Screen.width*0.5, Screen.height*0.5, 20));
	
	if (Physics.Raycast (ray, hit, distance)){
		hit.transform.SendMessage("Hovers", Hovering, SendMessageOptions.DontRequireReceiver);
	}
}

You’re setting showLabel to false in every frame on line 7 of Interactee.js.