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Department of Labor Appeals 'Persuader Rule' Injunction


On August 25, the U.S. Department of Labor ("DOL") appealed the injunction granted by a federal judge in Texas that halted the implementation of the 'Persuader Rule'.  Readers might remember that the Persuader Rule would impose significant reporting requirements that would mandate employers or consultants to disclose any arrangement to persuade employees in regard to the formation of a union or collectively bargain.

After the Persuader Rule was announced, several lawsuits were filed to challenge its implementation.  Although not all cases were successful, opponents of the Persuader Rule found a receptive court in the Northern District of Texas that agreed the plaintiffs were likely to prevail in their suit that claimed the DOL exceeded its authority and promulgated a rule that was arbitrary, vague, and in violation of federal law and the Constitution.

Now just because one judge in Texas granted the injunction does not necessarily mean the Persuader Rule is dead.  On the other hand, there is no guarantee that the DOL will succeed on its appeal to the Fifth Circuit of the injunction.  Regardless of the outcome at this stage, I think this one is a long way from being resolved.



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