DOL Officially Kills ‘Persuader Rule’

regulationsIn a victory for NAHB, the Department of Labor (DOL) today officially rescinded the Obama-era “persuader rule’ that would have unfairly required lawyers and consultants to report to the DOL when counseling employers concerning union organizing.

The DOL’s action today to issue a final rule comes one year after the agency issued a proposed rulemaking to withdraw it.

The regulation was issued in 2016. However, before it could be implemented, NAHB scored a major legal victory that November when the U.S. District Court for the Northern District of Texas granted NAHB, the Texas Association of Builders, the National Federation of Independent Business and other Texas business groups a permanent stay of the persuader rule.

Unions were seeking to prevent employers from talking to their lawyers in response to union organizing. The court ruling essentially put an end to the union effort.

The DOL announced the rescission in a news release. “For decades, the department enforced an easy-to-understand regulation: Personal interactions with employees done by employers’ consultants triggered reporting obligations, but advice between a client and attorney did not,” the Office of Policy’s Deputy Assistant Secretary Nathan Mehrens said in the release. “By rescinding this rule, the department stands up for the rights of Americans to ask a question of their attorney without mandated disclosure to the government.”

For more information, please contact Amy Chai at 800-368-5242 x8232 or Alexis Moch at x8407.

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