September 22, 2020

Volume X, Number 266

September 22, 2020

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September 21, 2020

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Texas Judge Finds Dept. of Labor’s Persuader Rule Unpersuasive, Permanently Blocks Rule

On Nov. 16, 2016, U.S. District Judge Sam R. Cummings issued an order invalidating the U.S. Department of Labor’s (DOL) Persuader Rule. In short, the Persuader Rule would have required employers to inform the DOL whenever the employer hired consultants for the purpose of fighting union organizing drives. The Persuader Rule would have also required the employer’s advisers, including attorneys, to make similar disclosures.

Nope, BlockIn issuing this latest order, Judge Cummings made permanent the nationwide preliminary injunction he issued against the Persuader Rule in June 2016. In part, Judge Cummings ruled that the Persuader Rule exceeded the DOL’s authority, was arbitrary and capricious and would interfere with the attorney-client relationship, which is within the purview of each state to regulate.

Although this is a favorable development for employers, Judge Cummings’ preliminary injunction order is already on appeal to the Fifth Circuit Court of Appeals. Please stay tuned into this space for future developments regarding the DOL’s Persuader Rule.

Copyright © 2020 Godfrey & Kahn S.C.National Law Review, Volume VI, Number 327


About this Author

Rufino Gaytán, Labor & Employment Attorney, Godfrey Kahn Law Firm "

Rufino Gaytán is an associate member of the firm's Labor & Employment Practice Group in Milwaukee. Rufino assists private and public employers in addressing general human resource issues and counsels employers in every aspect of labor and employment law. In particular, Rufino provides assistance with discrimination claims, wage and hour issues and drafting and enforcing restrictive covenant agreements. Rufino also represents clients before the Equal Employment Opportunity Commission and the Wisconsin Equal Rights Division.