Implementation Of DOL's New Persuader Rule Permanently Blocked

A federal court in Texas has issued a decision permanently blocking the U.S. Department of Labor (DOL) from implementing the final version of its "persuader rule." See National Federation of Independent Businesses v. Perez (N.D. Tex. November 16, 2016). On June 27, 2016, the court issued a temporary injunction prohibiting the DOL from implementing the rule. In its June 27 decision, the court held that a temporary injunction was appropriate because the parties challenging the rule were likely to succeed on their claim that the rule exceeds the DOL's authority under the LMRDA since it conflicts with the plain language of that statute. Additionally, in the June 27 decision the court held that the parties challenging the rule were likely to succeed on their claims it violates the Administrative Procedures Act, is arbitrary and capricious and an abuse of the DOL's discretion, and that it violates employers' Constitutional rights to free speech and association. In today's