Labor union activity
Court permanently enjoins DOL persuader rule expansion
Contributors
Christian Scali
Jennifer Woo Burns
Earlier this year we notified you about the new expanded union persuader rule issued by the U.S. Department of Labor this past spring. As a reminder, union persuader consultants are individuals who employers hire to communicate with employees about union organizing activities, generally in the context of attempting to persuade employees to vote against electing union representation. Under the Labor-Management Reporting and Disclosure Act (LMRDA), persuaders and employers using persuader services are required to publicly report the terms and conditions of the agreement or arrangement entered into between the employer and the consultant, the consultant's compensation for such services and sources of such compensation, and the consultant's disbursements of any kind, in connection with such services. Effective this past summer, the DOL expanded the definition of persuader services, which triggered these reporting requirements for additional activities, including services provided by consultants and attorneys for employers regarding labor unions, even beyond direct communications with employees.
On Wednesday a Texas federal judge permanently blocked the DOL’s enforcement of these expansions to the persuader rule, finding that the rule is unlawful. This injunction will prevent enforcement of the expanded rule nation-wide, and with the more conservative administration that will be taking over in Washington shortly, the future of this expanded rule is in serious question as the DOL under the new administration will likely shift away from a pro-union stance.