Federal Court Puts Brakes on Labor Department "Persuader Rule"

On Monday, a federal judge granted a nationwide injunction sought by a group of business interests and states seeking to halt implementation of the U.S. Department of Labor’s (DOL) contentious "persuader rule". The persuader rule, as it’s known and which was finalized by DOL in March, aims to limit employers’ ability to seek and retain legal counsel for purposes of consulting on employee union organizing drives. The rule also requires employers and legal counsel to disclose certain financial and other private information.

The order, handed down by Judge Sam R. Cummings from the U.S. District Court for the Northern District of Texas (National Federation of Independent Business et al. v. Perez et al.), noted that the persuader rule likely violates petitioners’ First Amendment rights and "exceeds the DOL’s authority". The rule will not be implemented on a nationwide basis "pending a final resolution of the merits of this case or until a further order of this Court, the United States Court of Appeals for the Fifth Circuit or the United States Supreme Court." Next steps for the persuader rule could include DOL vacating the rule, reexamining the rule and/or appealing order. DOL has yet to announce how it plans to proceed following the court order. Since the inception of the persuader rule in mid-2011, NRMCA has ardently opposed the rule both individually and as a member of the Coalition for a Democratic Workplace (CDW).

 

Click here for more information on the persuader rule. Click here to view the court’s injunction. For more information, contact Kevin Walgenbach at kwalgenbach@nrmca.org.