Federal Court Strikes Down 'Persuader' Rule
In a victory for construction industry groups, a federal court has permanently blocked a U.S. Dept. of Labor rule requiring attorneys and other outside groups to disclose publicly that they provide advice to employers on how to comply with federal labor laws.
The Nov. 16 ruling by the U.S. District Court for the Northern District of Texas said the DOL’s “Persuader” rule, an interpretation of the “Advice” section of the Labor Management and Reporting Act, was “far too broad.”
The agency said the rule, finalized on March 24, would give workers more information about who might be working with their employers to disseminate information about the union election process. Union groups supported the rule.
However, employer organizations argued it would have undermined the ability of employers to seek legal advice about labor issues, and the Associated Builders and Contractors and other stakeholders on March 30 filed a legal challenge.
The court’s decision is “another repudiation of the U.S. Department of Labor’s drastic overreach,” said Kristen Swearingen, ABC vice president of legislative and political affairs, in a statement.
A spokesman for the Dept. of Labor said the agency had no comment.
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