August 10, 2020

Volume X, Number 223

August 07, 2020

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Minnesota Court Rules in Persuader Lawsuit, Finds “Strong Likelihood” of Success on the Merits, But Rule Remains Effective July 1

The U.S. District Court for the District of Minnesota today ruled in Labnet Inc. d/b/a Worklaw Network, et al v. United States Department of Labor, et al, that the plaintiffs have a strong likelihood of success on the merits of their lawsuit challenging the DOL’s new “persuader” rule, but refused to stay or enjoin the rule. Therefore, for now, the rule will go into effect on July 1. However, based on the judge’s comments, there is reason for optimism that the rule ultimately will be found invalid. There are two other lawsuits challenging the rule pending, in Arkansas and Texas, where rulings have not been issued.

The new  rule  requires  employers  as  well  as  consultants/attorneys  to  report  to  the  DOL  all arrangements  in  which  an  “object”  (directly  or  indirectly)  is  to  persuade  employees  in  the exercise  of  their  “rights  to  organize  and  bargain  collectively  through  representatives  of  their own  choosing”  under  federal  labor  law.    The rule significantly broadens labor services that are reportable, and greatly narrows the legal “advice” exception.

Jackson Lewis P.C. © 2020National Law Review, Volume VI, Number 174

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About this Author

Howard Bloom, Jackson Lewis, labor union attorney, unfair practice investigations lawyer, employment legal counsel, bargaining law
Principal

Howard M. Bloom is a Principal in the Boston, Massachusetts, office of Jackson Lewis P.C. He has practiced labor and employment law representing exclusively employers for more than 36 years.

Mr. Bloom counsels clients in a variety of industries on labor law issues. He trains and advises executives, managers and supervisors on union awareness and positive employee relations, and assists employers in connection with union card-signing efforts, traditional union representation and corporate campaigns, and union decertification...

617-367-0025
Philip B. Rosen Jackson Lewis  Preventive Practices Lawyer & Collective Bargaining Attorney
Principal

Philip B. Rosen is a Principal in the New York City, New York, office of Jackson Lewis P.C. He is a member of the firm's Board of Directors and co-leads the firm's Labor and Preventive Practices Group. He joined the firm in 1979 and served as Managing Partner of the New York City office from 1989 to 2009.

Mr. Rosen lectures extensively, conducts management training, and advises clients with respect to legislative and regulatory initiatives, corporate strategies, business ethics, social media, reorganizations and reductions-in-force, purchase/sale transactions, sexual harassment and other workplace conduct rules, compliance with the Americans With Disabilities Act, wrongful discharge and other workplace litigation, corporate campaigns and union organizing matters, collective bargaining, arbitration and National Labor Relations Board proceedings. He has been quoted by the press on many labor matters, including the National Labor Relations Board’s recent initiatives on protected concerted activity and the proposed Notice Posting requirements.

Mr. Rosen has extensive experience advising clients developing integrated corporate-wide labor relations strategies - whether the organization is union-free, partially unionized or entirely unionized. He has led teams conducting multi-facility labor-related legal assessments where clients are seeking to develop creative, strategic legal approaches which anticipate major issues and achieve a company’s labor relations goals. Mr. Rosen also has advised clients being confronted with corporate campaigns and requests for neutrality agreements. He has represented organizations seeking to maximize management rights through their development of pro-active employee relations approaches to remain union-free. He also has advised unionized organizations on lawful negotiating strategies – in situations ranging from “hard bargaining” to recapture management rights to more “cooperative” negotiations – in all cases, providing legal advice designed to assist clients in achieving their primary goals.

212-545-4000