Court Blocks DOL's Final Persuader Rule

On March 23, the DOL issued its final persuader rule, officially titled the Interpretation of the 'Advice' Exemption in Section 203(c) of the Labor-Management Reporting and Disclosure Act (LMRDA), which drastically redefines "persuader" activity under Section 203 of the LMRDA. On June 27, the U.S. District Court for the Northern District of Texas issued a nationwide preliminary injunction that blocked the DOL from implementing the final persuader rule, which was scheduled to take effect  July 1. On Nov. 16, the court found the rule to be unlawful and permanently blocked it from going into effect

 

The final persuader rule sought to significantly narrow the "advice" exemption and broaden the reporting requirements for employers, attorneys, trade associations and other third-party advisors. Mere advice to an employer from an advisor would have been reportable if an object of the advice was to "indirectly persuade" employees about union organizing or collective bargaining. 

 

ABC National, ABC of Arkansas and a coalition of stakeholders also have filed a joint lawsuit challenging the final rule in the U.S. District Court for the Eastern District of Arkansas. ABC'S motion for summary judgment on the merits of this case is still pending. ABC will continue to update members on any developments regarding the legal challenge through Newsline