Labor Department Rescinds “Persuader Rule”
The U.S. Department of Labor has published a final rule rescinding the controversial “Persuader Rule” issued under Pres. Obama. This is a victory for AGC and others who opposed the regulation and urged the Trump administration to rescind it.
The Persuader Rule sought to expand the reporting obligations of labor relations consultants (broadly defined) who conduct activities to persuade employees about their rights to join a union or bargain collectively, as well as the reporting obligations of employers who receive assistance from such consultants. It required disclosure of sensitive financial information and other details of the business arrangement, even when the consultant neither communicates directly with employees nor drafts such communications.
The Persuader Rule was expected to have a substantial chilling effect on employers’ willingness and ability to seek needed advice from labor experts, but it never took effect due to a court injunction. The reporting standards in effect before the rule – requiring reporting only when consultants directly communicate with employees – have remained in effect and will continue going forward. The present rescission puts the final nail in the coffin for the Persuader Rule…at least until a future administration decides to exhume it.
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