Federal court halts 'persuader' reporting rule

A federal district court in Texas today ordered the Department of Labor to halt all implementation of the “persuader” reporting rule on a nationwide basis. “Because the scope of the irreparable injury is national, and because the DOL’s New Rule is facially invalid, the injunction should be nationwide in scope,” the court order states. The deadline for employers and labor consultants to comply with the final rule was July 1. If implemented, the rule would significantly expand the circumstances obligating employers and labor consultants to report activities specifically undertaken to encourage employees to vote for or against union representation or take a certain position with respect to collective bargaining proposals. The Texas district court’s decision comes less than a week after a federal court in Minnesota failed to halt implementation of the rule. The Texas order will remain in effect until the court reaches a final decision on the merits of the underlying challenge to the rule, bought by National Federation of Independent Business, Texas Association of Business, Lubbock Chamber of Commerce, National Association of Home, and Texas Association of Builders.