Persuader Rule Halted

12.29.2016

In March 2016, we told you about the Department of Labor’s finalized “Persuader” regulation under the Labor-Management Reporting and Disclosure Act which required employers and legal consultants to report to the Department any type of arrangement that may persuade employees on whether or not to organize or collectively bargain. 

Earlier this year, this rule was halted by a federal district court in Texas.  This means that, for now, employers who use legal consultants or some type of third party to advise them are relieved from any such arrangement.  In granting an injunction against the implementation of the new rule, the judge decided that the plaintiffs seeking to halt the rule had identified several ways in which the new rule may be against the law, among which is that the Department of Labor simply does not have the authority to eliminate the “advice exception”.

The injunction is not permanent and is in effect until the case is resolved or could be affected by additional litigation.  Employers should keep their eye on this issue to ensure that they do not run afoul of any Department of Labor regulations.