California Labor &
Employment Law Blog

Jun. 27 2016

Texas Judge Halts DOL’s Persuader Rule

Topics: Court Decisions, Union-Management Relations

Today, a federal judge in the Northern District of Texas issued a preliminary nationwide injunction blocking the Department of Labor's ("DOL") implementation and enforcement of its Persuader Rule, which was scheduled to begin applying to agreements for labor consulting and advice work on July 1, 2016.  (See our prior posts here and here for more information.)  The ruling came in a lawsuit filed by the National Federation of Independent Business ("NFIB"), challenging the legality of the Persuader Rule on several grounds.  The judge today found that the NFIB had demonstrated a substantial likelihood of prevailing in the lawsuit and that irreparable harm would result if the Rule was not enjoined pending resolution of the lawsuit.  

Today's ruling means that the Persuader Rule's new reporting obligations will not be triggered beginning July 1 for advice work and other indirect persuasive activity by labor consultants and attorneys retained by employers to assist them in responding to union organizing or collective bargaining issues. The ruling applies nationally, not just in Texas, and will be remain valid unless and until overturned by an appellate court or by further order of the same court that issued the ruling.  For now, this is a temporary reprieve from the rule, but not yet a permanent end.  Stay tuned for further developments. 

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For over 20 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor

Robin Largent represents employers, including major food and retail companies, in all types of employment litigation: wrongful termination, retaliation, breach of contract, wage and hour (California Labor Code) and unfair competition. She also regularly counsels and advises California employers on issues of compliance with California and federal employment laws.
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