Thursday, April 28, 2016

Challenges to the DOL’s Persuader Rule

The Department of Labor finalized changes to its controversial “persuader” rule, requiring employers and their labor consultants, including attorneys, to report any arrangement to directly or indirectly persuade employees regarding unionization.  Many attorneys object that this requirement would violate attorney-client privilege, and the rule is already facing multiple challenges in courts across the country, including at least one in Minnesota. 

The previous rule only required these arrangements to be reported if the consultant directly communicated with employees, but under the new rule—which is set to take effect on April 25, 2016, and apply to any arrangements, agreements, and payments made on or after July 1, 2016—expands this requirement so that if consultants merely advise management on how to communicate with employees, this will need to be reported as wall.  The court challenge is attempting to block the rule before it goes into effect. 

Questions? Contact Minnesota attorneys at (952) 746-1700 or email jasherman@wesselssherman.com