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 25 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 has a regular presence in California state and federal courts and has been lead defense counsel and appellate counsel for large and small California employers in litigation (and arbitration) ranging from individual discrimination and harassment claims to complex wage and hour representative and class actions. She also leads the firm’s appellate practice, having substantial experience and success handling appeals, writ petitions, and amicus briefs in both state and federal court on issues such as class certification (particularly in the wage and hour arena), manageability and due process concerns associated with class action trials, exempt/non-exempt misclassification issues, meal and rest break compliance, trade secret/unfair competition matters, and the scope of federal court jurisdiction under the Class Action Fairness Act.
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