NAHB and Industry Allies Seek Changes to Persuader Rulemaking Process

Filed in Codes and Regulations, Labor, Safety and Health by on January 12, 2016 0 Comments

NAHB and dozens of industry allies representing millions of employers sent a joint letter to Secretary of Labor Thomas Perez last month urging the U.S. Department of Labor (DOL) to withdraw its persuader rule and consolidate it with a separate proposal.

Under the Labor-Management Reporting Disclosure Act of 1959 (LMRDA), the persuader rule requires employers to report to DOL each time they engage a consultant to directly or indirectly persuade workers concerning their rights to organize and bargain collectively, regardless of whether the consultant has direct contact with workers.

DOL is proposing to broaden its scope to impose new and more far-reaching reporting requirements on employers and their consultants. These changes are expected to be announced in March 2016.

The agency is also looking to make updates to Form LM-21, a major component of the persuader reporting process. Form LM-21 is the document an employer must file that discloses all receipts related to the labor advice given. The proposed rule revising Form LM-21 would not be issued until September 2016.

Because an employer’s reporting obligations would change before additional modifications are made to the Form LM-21 disbursement report, the joint industry letter said that “making changes to the persuader advice exemption without making concurrent changes to Form LM-21 renders the form obsolete and potentially undermines the persuader reporting process.”

NAHB and industry allies continue to urge DOL to re-examine its proposed persuader rule and engage in a sound rulemaking process to provide greater clarity for the regulated community.

For more information, contact Suzanne Beall at 800-368-5242, x8407.

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