DOL Moves to Withdraw Persuader Rule

On June 12, 2017 DOL announced that it is rescinding the persuader rule, which requires employers and any outside labor attorney or consultant they hire to provide greater disclosure regarding anti-union activities. DOL is now seeking comments through August 10 on rescinding the rule. 

A coalition of states and business groups had filed suit challenging the persuader rule arguing that DOL had exceeded its authority under the Labor Management Reporting and Disclosure Act.

A federal district court in Texas issued a temporary injunction against the persuader rule on June 27, 2016, only four days before it was set to take effect. The federal district court issued a permanent injunction on November 16, 2016.

Originally scheduled to take effect on July 1, 2016, the persuader rule would have required employers to report to DOL each time they engage a consultant to directly or indirectly persuade workers concerning their rights to organize and bargain collectively, regardless of whether the consultant had direct contact with workers.

Historically, the advice of attorneys and consultants has been exempt from the reporting requirements as privileged and confidential attorney-client communications, if 1) the attorney or consultant limits his or her services to advice, which the client is free to accept or reject, and 2) the attorney or consultant avoids direct communications with bargaining unit employees. DOL is now seeking comments through August 10 on rescinding the persuader rule.