The U.S. District Court for the Northern District of Texas enjoined the Department of Labor’s (DOL) “persuader” rule on Tuesday, June 27. The injunction – which is nationwide – prevents DOL from implementing the new persuader rule until a final resolution is attained.
While currently enjoined, court action may continue with an appeal by the DOL. With this in mind, the battle on this issue is far from over, but the enjoinment will stay in place until a decision is made through the appeal.
DOL’s new rule significantly revised and expanded the reporting and disclosure requirements imposed on employers and advisors (including consultants and lawyers) under the Labor-Management Reporting and Disclosure Act (LMRDA). If implemented, DOL’s new rule would require employers and consultants to report and disclose direct or indirect communications that have an object to persuade employees with regard to union organizing— including what was formerly considered exempt “advice” provided to management by consultants, including lawyers.