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10 Jul 2017 Department of Labor Aims to Rescind ‘Persuader Rule’; Comments Due Aug. 11

  Last month, the U.S. Department of Labor (DOL) submitted a notice of proposed rulemaking intended to rescind what is known as the “persuader rule.” We previously reported that the persuader rule, which was first published in 2016 during the Obama administration, was controversial and had been tied up in litigation for months; at the end of 2016, a federal court stopped it from being enacted. The rule would have required employers to publicly disclose…

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24 May 2017 It Could Be. It Might Be. IT IS! DOL’s Persuader Rule To Be GONE!

  Media outlets are reporting that the Department of Labor (DOL) officially is moving to drop its “persuader rule” that would have imposed significant reporting requirements on companies and consultants related to union-avoidance efforts.   On May 22, the DOL formally proposed to revoke the controversial rule. The rule has been tied up in litigation for months, and a challenge currently is pending in the Fifth Circuit Court of Appeals. The DOL’s move to rescind the…

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03 May 2017 Persuader Rule Still in Limbo

  Earlier this week, the Trump administration told a Minnesota district court judge that it needs additional time – until July 3 – to file the government’s position on the Persuader Rule. The administration said “[t]he United States Department of Labor still awaits the arrival of key political leadership prior to making final decisions as to the issues raised by this litigation . . . .”   Meanwhile, further south, a Texas district court judge’s decision…

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09 Dec 2016 Second Persuader Rule Case Halted; Court to Wait for New Administration

  With a nationwide injunction already in place by a federal court in Texas, a federal court in Minnesota has entered a stay of proceedings in a second suit that also seeks to block enforcement of the persuader rule.   U.S. District Judge Patrick J. Schiltz’s two-page order not only denied cross motions for summary judgment from the parties, but also stayed the proceeding. Judge Schiltz concluded that “The court agrees with plaintiffs that there is…

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16 Nov 2016 DOL’s Persuader Rule Unlawful; Permanently Enjoined

  A federal court judge in Texas has granted summary judgment in a case contesting the legality of the Department of Labor’s (DOL) new Persuader Rule. The effect of the summary judgment ruling is to declare the rule to be unlawful and unenforceable. The ruling was made in a suit brought by 10 states and several business associations.   In a brief order, U.S. District Judge Sam R. Cummings wrote “The court is of the…

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11 May 2016 DOL Defends Persuader Rule Claiming There Is No Threat to the Attorney-Client Privilege

On May 6, the Department of Labor (DOL) vigorously defended its revised and narrower interpretation of the “advice exception” in the Labor Management Reporting and Disclosure Act (LMRDA). In the final rule, the DOL announced on March 24 that it was changing its interpretation of the LMRDA’s “advice exception” and a number of law firms filed suit in the District Court of Minnesota (Labnet Inc. v. Perez, D. Minn. , No. 16-cv-844) seeking injunctive relief to…

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18 Apr 2016 GOP Moves to Block New Persuader Rule

Rep. Bradley Byrne (R-AL) has introduced a resolution (H.J. Res. 87) to block the implementation of the Department of Labor’s new “Persuader” Rule. The resolution is made pursuant to the Congressional Review Act and seeks to block the rule which is scheduled to go into effect on April 25.   Critics of the new rule argue that the regulation will make it harder for employers to communicate with employees and undermine the right of workers…

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23 Mar 2016 DOL Publishes Final Persuader Rule

  The U.S. Department of Labor (DOL) has published its long-awaited final rule regarding “persuaders” hired by employers during union organizing campaigns. The text of the full rule (clocking in at 446 pages) can be found here.   The rule essentially rewrites (although, the DOL uses the word “realigns”) the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). As stated by the DOL, “This Final Rule requires that employers and the consultants they hire file reports…

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