Skip to main content
A Better Partnership


Jun 2016
June 29, 2016

U.S. Department of Labor's Persuader Rule on Hold

On June 27th, a federal judge in Texas issued a preliminary injunction, putting a nationwide temporary hold on the U.S. Department of Labor's (DOL) effort to expand the so-called “Persuader Rule” to cover indirect persuader activities. As a result of this decision, the DOL is prohibited from implementing the extension of the rule until the case is settled by the courts.

The Persuader Rule requires employers and their advisors (including lawyers) to file public reports with the DOL disclosing any services performed to “indirectly persuade” employees regarding union organizing or collective bargaining. An example of indirect persuasion could include advising an employer on how best to discuss unionization with its employees. Previously, these reports were mandated only if an advisor made direct contact with the employer’s employees. An example of direct persuasion could include a third-party advisor meeting face-to-face with the employer’s workforce. Three lawsuits were filed against the DOL, arguing that the revised Persuader Rule is inconsistent with existing law, violates the First and Fifth Amendments and interferes with the attorney-client privilege.

Last week, a federal court in Minnesota denied a similar request for an injunction. The Minnesota court, like the court in Texas, found that the challengers of the DOL’s revised rule had shown a strong likelihood of success on their claims, but the Minnesota court did not find that the challengers had shown any irreparable harm if the DOL’s revised rule went into effect while it was being challenged in the courts. The Texas court saw things differently and found that, “The chilling of speech protected by the First Amendment is in and of itself an irreparable injury.”  

Services for direct persuader activity continue to be reportable.

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.



+ -