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Out With A Whimper: DOL Moves To Rescind Persuader Rules

As we reported last month, the DOL was considering what to do with the enjoined persuader rules, new regulations that would have drastically changed the interpretation of the advice exemption to the LMRDA reporting requirements.  In sum, the new rules effectively narrowed the advice exemption to require reporting of a number of activities that had clearly fell within the exemption for some 50 years.

Earlier this week, the Department of Labor published a notice of its intent to rescind the persuader rule:  Rescission of Rule Interpreting Advice Exemption, 82 Federal Register 26877 (June 12, 2017)  The notice states the proposed rescission is “part of the Department’s continuing effort to fairly effectuate the reporting requirements of the LMRDA.”

The reason given behind the rescission is that it “it would ensure that any future changes to the Department’s interpretation would reflect additional consideration of possible alternative interpretations. . .and could address the concerns that have been raised by the reviewing courts.”  As to this latter consideration, the rule change was enjoined by a federal court last year and never went into effect.

Comments on the proposed rescission are due on or before August 11, 2017.  This action by the Department of Labor isn’t terribly surprising given the change in administration and the opposition to the rule change.

© 2022 Proskauer Rose LLP. National Law Review, Volume VII, Number 166
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About this Author

Mark Theodore, Employment Attorney, Proskauer Rose
Partner

Mark Theodore is a partner in the Labor & Employment Law Department. He has devoted his practice almost exclusively to representing management in all aspects of traditional labor law matters throughout the U.S. 

Some highlights of his career include:

  • Successfully negotiated the first contract for a shipping agency during constant threat by union to shut down Port of Los Angeles

  • Successfully defended a major theme park when the NLRB sought bargaining order after the union...

310-284-5640
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