U.S. DOL’s Persuader Rules Advances One Step Closer to Publication

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On December 8, 2015, the United States Department of Labor (“DOL”) submitted the so-called “Persuader Rule” to the Office of Management and Budget for review. The Persuader Rule applies to employers, attorneys, consultants and other persons who attempt to persuade employees to oppose a union’s organizing efforts.  While the exact provisions of the new rule are presently unknown, based upon the proposed rule, it is likely aimed at narrowing the “advice” exemption to the reporting requirements of the Labor-Management Reporting and Disclosure Act. Specifically, the new rule could potentially require employers to report the nature and cost of legal services expended in opposing a union’s organization efforts, something that has previously been exempt from disclosure. 

The DOL's recent submission indicates that after years of delay, the rule may be finalized in March 2016 and suggests that the DOL intends to take this reporting issue more seriously going forward. We will provide updates as to the substance of the final rule when it becomes available. In the meantime, all employers should be prepared for the potentially far-reaching consequences of this new reporting requirement.

Please contact us if you have any questions or concerns regarding how this may affect your overall labor strategies.