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Texas Court Permanently Strikes Down Persuader Rule

Good news for employers. On November 16, 2016, a Texas federal judge permanently enjoined the Department of Labor's ("DOL") proposed Persuader Rule. The federal court's decision to permanently block the rule ensures that employers and consultants, at least for the foreseeable future, are relieved from complying with the DOL's proposed Rule. In his opinion, the federal judge stated that the Rule "should be held unlawful and set aside" in addition to remarking that the Rule has the effect of destroying the attorney-client privilege and undermining an employer's fundamental right to counsel.

The Rule would have required employers to annually report agreements that have the object of dissuading employees from supporting unions, commonly referred to as persuader activities agreements, and consultants to report both the persuader activities agreements and payments from employers for all "labor relations advice and services." The change would have signaled a dramatic change from the existing, and long-standing, persuader rules.  

While the DOL may appeal the federal court's decision, such a decision may not come until a new Secretary of Labor has been appointed under the new Trump administration.  

© 2020 Varnum LLP

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Dennis M. Devaney, labor and employment lawyer, Varnum
Partner

For more than 30 years, Dennis has represented clients in labor and employment disputes, on international trade issues, in litigation and on legislative and regulatory matters. His labor and employment practice focuses on traditional labor law, including representation of clients with respect to matters arising under the National Labor Relations Act. He also represents employers in defense of discrimination claims and with respect to collective bargaining agreement negotiation and administration. He acts as trial counsel in arbitration hearings for his clients throughout...

248-567-7825
Luis E. Avila, Labor Employment Attorney, Varnum Law, Immigration Issues Lawyer, Grand Rapids
Partner

Luis focuses his practice on labor, employment and immigration issues. Luis has a wide range of experience in traditional labor matters, including grievances, arbitrations, collective bargaining negotiations, union drives, and matters in front of the National Labor Relations Board (NLRB) and the Michigan Employment Relations Commission (MERC). Luis has counseled employers on a number of workplace matters, including effective employee handbooks and policies, disciplinary and dispute resolution procedures, discrimination, disability accommodation, wage-hour matters, family medical leave, and harassment and litigation prevention. Luis has experience representing employers under the various state and federal statutes that govern the employment relationship, including the Fair Labor Standards Act (FLSA), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), and the Family and Medical Leave Act (FMLA). Luis is fluent in Spanish and English. His immigration experience includes employment and family-based nonimmigrant and immigrant petitions, Form I-9 compliance, visa processing, waivers, DACA and citizenship matters.

616-336-6742
Tiffany Snow, Varnum Law Firm, Labor and Employment Attorney Detroit MI
Associate

Tiffany is a member of the firm's Labor and Employment Team. She has a depth of experience in employment matters, having served as a senior account manager at a regional staffing firm for many years prior to obtaining her law degree. Her legal education includes a litigation and estate planning focus.

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Western Michigan University Thomas M. Cooley Law School
Auburn Hills,...

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