Labor & Employment

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Federal Court Blocks DOL's "Persuader" Rule

June 27, 2016

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A federal judge in Texas issued a nationwide injunction to halt the Department of Labor’s (DOL) implementation of its union “persuader” rule, at least temporarily.  The “persuader” rule requires employers and their advisors to disclose their relationship for any advice that “indirectly persuades” employees regarding union organizing or collective bargaining.  The judge granted the preliminary injunction after finding that the business groups that filed suit had shown a likelihood of success on the merits on constitutional grounds, as well as “a substantial threat of irreparable harm” if the rule went into effect.  The judge observed that “DOL’s New Rule contains reporting requirements that are inconsistent with and undermine the attorney-client relationship and the confidentiality of that relationship.”  The injunction will remain in place until the case is resolved by the courts. 

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