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July 02, 2020

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District Court in Texas Issues Nation-wide Injunction on Persuader Activity Rule from DOL

On June 27, 2016, the United States District Court for the Northern District of Texas issued a nation-wide injunction prohibiting the enforcement or application of the recently enacted persuader activity interpretative rule from the United States Department of Labor (DOL). In an 86-page opinion, United States District Court Judge Sam Cummings granted the relief to the National Federation of Independent Business, along with other trade associations representing employers. The court found that it has jurisdiction to enter an injunction against the defendants on a nation-wide basis and that the plaintiffs and intervenor-plaintiffs in the litigation had shown that the nation-wide injunction is appropriate “because the scope of the irreparable injury is national, and because the DOL’s new rule is facially invalid, the injunction should be nation-wide in scope.”

The persuader activity rule was set to become active on July 1, 2016. The rule would have required employers, attorneys and consultants who agreed or arranged to conduct indirect persuader activity report that relationship to the DOL, disclose the fees and disbursements paid for those services and all labor relations advice. The rule dramatically expands the interpretive rule maintained by the Agency for more than 50 years.

© 2020 Dinsmore & Shohl LLP. All rights reserved.National Law Review, Volume VI, Number 180

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About this Author

Mark Cather, Labor Practice Group Chair, attorney, Dinsmore Shohl
Partner

Mark Carter is the Labor Practice Group Chair of the firm. He has a national practice focused on advising employers on all aspects of relationships with labor unions.

Mark has advised and represented employers throughout the United States in corporate campaigns, collective bargaining, arbitrations and federal litigation involving labor unions as well as serving employers in employment litigation. He has litigated in Alaska, New Jersey, Idaho, Michigan, Alabama and other states and has advised clients in Washington state, Puerto Rico, California...

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