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ARTICLE · 21 NOVEMBER 2016

The "Persuader Rule" Permanently Enjoined

As we have previously reported, in March of 2016, the Department of Labor ("DOL") issued a reinterpretation of the Persuader Activities Rule (The "Revised Rule").

United StatesEmployment and HR

As we have previously reported, in March of 2016, the Department of Labor ("DOL") issued a reinterpretation of the Persuader Activities Rule (The "Revised Rule"). This Revised Rule required that:

  1. employers must annually report agreements that have the object of dissuading employees from supporting unions ("persuader activities agreements");
  2. consultants must report such persuader activities agreements within 30 days; and
  3. consultants who enter persuader activities agreements must report payments from employers for all "labor relations advice and services." (the "LM-21 Report").

This changed a long-standing rule for what qualified as "persuader activities." Previously, if the consultant had direct contact with the target employees, it was acting as a "persuader" and the employer and the consultant had to file reports. However, if the consultant had no direct contact with employees, it fell under an exemption that covered the "advice" exception.

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