Monday, April 4th, 2016

DOL Releases Final Persuader Rule

On March 23, the Department of Labor (DOL) released the final “persuader rule” which changes longstanding requirements on how employers can seek advice regarding union organizing activities and when employers and others have to disclose information to DOL. The previous rule required disclosure only from employers and others who had direct contact with employees regarding union organizing campaigns.

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The new rule will now require persuader disclosure by third-party lawyers and labor consultants educating employers on union organizing rights and collective bargaining, even if they have no direct contact with employees. Management attorneys argue that the new rule will threaten client confidentiality and hamper the ability of employers to seek advice to respond to unionization activities. The Obama Administration says that the rule will provide clarity to employees and the public without limiting what employers and consultants can say, and while informing workers of who is saying what. Exempt from disclosure is the advice from consultants and lawyers making “recommendations regarding a decision or course of conduct.” Trade associations are only exempted if they do not conduct seminars or provide materials to member companies.

The rule takes effect on April 25, 2016, and is applicable for arrangements and agreements made after July 1. The Coalition for a Democratic Workplace (CDW), of which SPI is a member, is reviewing the final rule and will challenge it in court if warranted. 

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