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Updated: Texas Judge Blocks Implementation of Dept. of Labor's "Persuader Rule"


Back in April, I had noted that the Department of Labor issued a publication of the new "Persuader Rule".  That rule would require extensive disclosures from employers or consultants to report any arrangement to persuade employees in regard to the right to organize or collectively bargain.  Many in the labor field were taken aback by the far reaching impact this new rule would have.  

At the time, I pointed out that several cases had been filed to contest the Persuader Rule.  Earlier this week, a federal judge in the Northern District of Texas issued a nationwide injunction that blocks the implementation of the Persuader Rule...for the time being.  In the order, the Court wrote that the National Federation of Independent Business (among other plaintiffs) that had filed suit to challenge the rule were likely to succeed on their claims that the Department of Labor exceeded its authority and promulgated a rule that was arbitrary, vague, and violated federal law and the Constitution.  

The Court further held that the plaintiffs were likely to suffer irreparable harm if the Persuader Rule went into effect, as planned, and that a nationwide injunction was necessary because the plaintiffs (and intervenors) consisted of multiple states along with business groups with members in all fifty states.

Interesting to note that earlier this month, however, a federal court in Minnesota that heard a similar challenge declined to grant an injunction to block implementation of the Persuader Rule.  It appears these plaintiffs in the Texas case have had better luck on the issue...so far.  Of course, the dual outcome of the issue could result in the issue working its way through the courts of appeals and ultimately all the way up to the United States Supreme Court.



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