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Total Articles: 4

Court Grants Permanent Injunction, Blocking Labor Department’s New Persuader Rule

The U.S. District Court for the Northern District of Texas, Lubbock Division, has converted its nationwide preliminary injunction, issued on June 27, 2016, against the U.S. Department of Labor’s “persuader” rule into a nationwide permanent injunction. National Federation of Independent Business, et al. v. Perez, et al., No. 5:16-CV-00066-C (N.D. Tex. Nov. 16, 2016). The court found the rule “unlawful.”

Court Permanently Blocks DOL's Persuader Rule

To the relief of many employers that rely on third parties to provide labor advice and services, a Texas federal court has permanently blocked a rule that would have required them to make certain disclosures about their consultants to the Department of Labor. In National Federation of Independent Business v. Perez, the U.S. District Court for the Northern District of Texas held that the DOL's "persuader" rule "should be held unlawful and set aside," and that the temporary injunction the court issued in June to prevent the DOL from enforcing the rule be made permanent. As a result of this permanent injunction, employers—at least for the foreseeable future—do not need to comply with the consultant disclosure requirements.

Federal Court Permanently Enjoins the Persuader Rule

On November 16, 2016, the U.S. District Court for the Northern District of Texas (Lubbock Division) converted its injunction preventing implementation of the U.S. Department of Labor’s revised persuader rule on a national basis from preliminary to permanent. According to Judge Sam R. Cummings’s order, the court converted the preliminary injunction to a permanent one for the same reasons “stated in the Court’s Preliminary Injunction Order entered June 27, 2016” in National Federation of Independent Business et al. v. Perez, et al. Judge Cummings found the DOL’s revised persuader rule to be “not merely fuzzy around the edges. Rather the New Rule is defective to its core.”

Employers Claim Crucial Victory In Persuader Battle

Today a federal court judge delivered what could be the final nail in the coffin for the controversial persuader rule, which sought to force attorneys and their clients to report in open records the details of their confidential attorney-client relationships, and which would have complicated employers’ efforts to seek legal counsel in opposing and dealing with unions. District Court Judge Sam R. Cummings, sitting in the Northern District of Texas, today granted a permanent injunction that will block the rule from going into effect on a nationwide basis.