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ARTICLE · 24 JULY 2018

DOL Rescinds Its Persuader Rule

On July 17, 2018, the DOL rescinded its 2016 "persuader rule" — a controversial reinterpretation of the Labor-Management Reporting and Disclosure Act of 1959 that would have required employers and their consultants ...

United StatesEmployment and HR

On July 17, 2018, the DOL rescinded its 2016 "persuader rule" — a controversial reinterpretation of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA) that would have required employers and their consultants (including lawyers) to report their relationships and the fees paid related to persuading employees "to exercise or not to exercise... the right to organize and bargain collectively... ."

The 2016 rule effectively eviscerated the LMRDA's exemption for reporting advice, including legal advice, if the DOL concluded that an object of the advice — directly or indirectly — was persuading employees about whether or not to form or join a union.  Activities that would have triggered reporting included indirect consultant activity undertaken with a potential object to persuade employees, such as planning, directing, or coordinating activities undertaken by supervisors; providing material or communications for dissemination to employees; conducting positive

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