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Congress Seeks to Block ‘Persuader’ Rule

  • April 18, 2016

Republicans in the House of Representatives have introduced a joint resolution (H.J. Res. 87) expressing congressional disapproval and seeking to block implementation of the United States Department of Labor’s controversial Final Rule relating to “persuader” activity under the Labor-Management Reporting and Disclosure Act (LMRDA). The Rule is set to become effective on April 25, 2016.

Under the new DOL rule, published on March 24, 2016 (81 Fed. Reg. 15,924), both the employer/client and its consultant/attorney would be required to report to the DOL all arrangements in which an “object” (directly or indirectly) of the services provided by the consultant/attorney is to persuade employees about the manner of exercising the employees’ “right to organize and bargain collectively through representatives of their own choosing” under federal labor law. (See our article, DOL’s Rule Redefining LMRDA ‘Advice Exception’ and Expanding Types of Activities Considered Persuasive, Reportable is Finalized – Effective Late April 2016.) The rule will be applicable to agreements, arrangements and payments made on or after July 1, 2016.

Representative Bradley Byrne (R-AL), a member of the House Committee on Education and the Workforce, introduced H.J. Res. 87, saying, “I am proud to introduce legislation to protect hardworking Americans and employers from a rule that would restrict privacy, upend the attorney-client relationship, and limit employee access to information during an organizing campaign.”

In addition, at least three lawsuits have been filed challenging the Final Rule.

Please contact a Jackson Lewis attorney with any questions.

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