On June 27, the US District Court for the Northern District of Texas issued a preliminary, nationwide injunction which prevents the Department of Labor’s Persuader rule from becoming effective. The final Persuader Rule was released by the Department of Labor in late March and requires full public disclosure on the use of labor relations consultants by employers. In short, the rule requires employers and their hired consultants to report when the consultants directly persuade workers or when the consultants in four “indirect” categories. The Persuader rule was first introduced in 2011, but has been on hold since 2014. The reporting requirements were slated to become effective July 1, 2016.
In the opinion, Judge Sam R. Cummings stated that the rule will “cause irreparable harms” by “reducing access to full, complete, unconflicted legal advice.”
Congress had already attempted to nullify this rule through the Congressional Review Act. HJ Resolution 87 would prevent the rule from taking effect. It was introduced by Representative Bradley Byrne (R-AL) on April 15. The bill was reported favorably out of the House Committee on Education and the Workforce but has yet to receive consideration by the full House of Representatives.
Stay tuned for the latest information.