Texas News


Date ArticleType
11/16/2016 Press Release
Persuader Rule Permanently Blocked

Persuader Rule Permanently Blocked

AUSTIN, TX— U.S. District Judge Sam Cummings of the Northern District of Texas has permanently blocked the U.S. Department of Labor (DOL) from implementing its so-called “Persuader Rule” which would have severely limited an employer’s ability to obtain legal advice during a union organizing campaign.  The Texas Association of Business, along with the National Federation of Independent Business, Lubbock Chamber of Commerce and other nonprofits, requested the injunction on behalf of their member-employers, and were joined by the Attorneys General of 10 states, including Texas, as plaintiffs in the case.

“This stops what would have been a significant overreach of the DOL,” said TAB Vice President of Government Affairs Cathy DeWitt.  “We are very pleased with the ruling.”

The Persuader Rule would have required employers who get legal advice on union organizing campaigns to file onerous reports that would become public, including identifying their lawyers, how much was paid for legal advice concerning union activities and what type of advice was given.  Moreover, lawyers who advise employers regarding union organizing would have had to file similar public reports, but not only with respect to clients for whom they provide advice regarding union organization, but also for other clients for whom they provide general labor relations advice, even if that work is not related to union organizing.

It is possible the DOL will appeal the ruling.

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As the state chamber of commerce, the Texas Association of Business is the most influential and dominant voice for public policy issues affecting business in Texas.   Through proven results-oriented advocacy and member services, TAB develops a climate in Texas which enables more than 4,000 business members and their 600,000+ employees to operate efficiently and profitably, thus creating new jobs.  TAB is proud to be the official state partner of the National Association of Manufacturers.