Wednesday, July 19, 2017

Department of Labor Intends to Rescind “Persuader Rule”

Lilly Hummel

The Department of Labor recently submitted a notice of proposed rulemaking intended to rescind what is known as the “persuader rule.” The rule would have required employers to publicly disclose certain relationships with labor relations consultants, including the identity of any outside attorneys or consultants that may affect employees’ rights to engage in protected activity, the terms of any such engagement, and the activities to be performed by the attorney or consultant. Companies had reported concern that the rule would test the limitations of the attorney-client privilege and the privacy of consultant relationships protected by the Labor-Management Reporting and Disclosure Act (LMRDA). Rescinding the rule would not affect the disclosure requirements currently in effect. In November 2016, a federal court stopped the rule from being implemented, so it has never been enforced. Comments on the proposed rescission are due August 11, 2017.

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