DOL Rescinds Union-Backed ‘Persuader Rule’

The U.S. Department of Labor (DOL) recently announced its full repeal of the Obama administration’s “persuader” rule that it introduced two years ago. The rescission, which was formally published in the Federal Register on July 18, will take effect 30 days after publication. TRSA and other industry groups affiliated with the Citizens for a Democratic Workforce (CDW) strongly supported this move by the DOL.

The persuader rule changed federal disclosure rules to make it more difficult for employers to access legal counsel or other expert advice on labor and employee-relations issues. This regulation interfered directly with an employer’s ability to engage in positive, good-faith employee communications about the pros and cons of unionization.

In March 2016, CDW joined seven other plaintiffs in filing a petition in federal court in Arkansas challenging the regulation. A federal judge in Texas permanently enjoined the rule later that year. The Obama administration had appealed the decision to the 5th Circuit Court of Appeals, but the litigation was delayed numerous times under the administration of President Donald Trump. On June 12, 2017, the DOL issued a new Notice of Proposed Rulemaking (NPRM) proposing a rescission of the rule in its entirety. The CDW filed comments on the NPRM supporting the full withdrawal of the rule.

Democrats have introduced two bills this Congress that would codify the persuader rule – the Workforce Democracy Act and the Workers’ Freedom to Negotiate Act. CDW members (including TRSA) are actively lobbying against these proposals. You can follow the coalition’s campaign here. In addition, you can follow the CDW’s twitter handle @MyPrivateBallot.