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Set to take effect July 1, court blocks enforcement of 'persuader' rule

July 1, 2016
A federal court on June 27 enjoined the U.S. Department of Labor from enforcing its so-called "persuader" rule, noting that it undermines employers’ rights to secure legal advice on union organizing. The "persuader" rule was set to take effect July 1. 
Among other things, the court held that the Labor Department failed to adequately explain changes from its prior position on persuader activity. 
In doing so, it cited the Supreme Court decision earlier in June in Encino Motorcars, LLC v. Navarro, which held that the Department had similarly failed to properly justify a change to its long-standing position that service writers are exempt from overtime. 
The "persuader" rule attempts to require employers and their outside lawyers and consultants to report on any efforts they make to persuade employees on their right to organize or bargain collectively. 
Questions on the rule or the injunction can be directed to National Automobile Dealers Association’s regulatory affairs division at regulatoryaffairs@nada.org or (703) 821-7040.
 

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