Resolution Introduced in Congress to Block New “Persuader Rule”

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In response to the publication of the Department of Labor’s (DOL) new “Persuader” Rule scheduled to become effective on April 25, 2016, House Republicans have introduced a resolution (H.J. Res. 87) which seeks to block implementation of the rule. The resolution is offered through the Congressional Review Act.

As we’ve reported to our members previously, under the new DOL rule (published on March 16, 2016), both the employer/client and its consultant/attorney would be required to report to the DOL any communications between the employer and the consultant/attorney in which there is a discussion concerning the employees’ right to organize and bargain collectively through representatives of their choosing. Communications apply to any agreements, arrangements or payments made on or after July 1, 2016.

Opponents of the rule argue that the legislation will make it harder for employers to communicate with employees and will undermine the right of workers to make informed decisions to in union elections. Further, and importantly, critics argue that the rule violates the attorney-client privilege and will subject the attorneys/consultants to loss of licenses for ethical violations under state laws.

The “Persuader” Rule is already subject to challenge in lawsuits filed in Minnesota, Arkansas, and Texas. These suits allege that the new rule is unconstitutional and violates the Labor Management Reporting and Disclosure Act of 1959 (the Landrum-Griffin Act).

We will keep our members up to date on further developments in this hotly contested new legislation.

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Posted In: Government, Legal