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E-Alert!!!
  
DOL Persuader Rule Changes on Hold!
  
Court Injunction Issued!
  
Call it the cavalry riding in to save the day (at least temporarily) for employers.

With July 1st just a few days away, the United States District Court for the North District of Texas has granted a preliminary injunction; effectively blocking the US Department of Labor (DOL) from enforcing the much maligned "Persuader Rule" changes that were otherwise set to take effect on July 1st.

To provide a quick recap, the United States Department of Labor had revamped and published a new "final rule" on the interpretation of the "Advice" Exemption to Section 203 ( c) of the Labor Management Reporting and Disclosure Act (LMRDA)..  The final rule would have had the effect of requiring employers to report to the DOL not only direct persuader activity but also indirect persuader activity as well - to report activities and arrangements that employers had with lawyers and labor relation consultants even if such lawyer or consultant was not direct engaging employees so long as the object of that activity was to persuade employees to not join a union.  The reporting would have to be signed by the employer's President and Treasurer (or officers of the corporation who hold such roles) under penalty of perjury.

In granting the injunction for the plaintiffs (including the National Federation of Independent Business and a host of other state bar associations and organizations), Judge Sam Cummings said the new DOL's new rule is "arbitrary and capricious" and in all likelihood was beyond the authority vested in the DOL under the LMRDA.

To view the injunction ruling - click here.

You can view the final rule as well as the revised forms and instructions that has been the source of this litigation by clicking here.

The injunction is not the end of this story - far from it as the DOL can appeal the ruling to the US Court of Appeals.  However, for the time being, the rules that were in place previously remain in effect; thus limiting reporting activity to matters involving direct persuader activity.

We will keep you abreast as further developments warrant.
  


   
  
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