KZA Joins Lawsuit To Stop Enforcement Of New DOL Persuader Rule

On March 23, 2016, the U.S. Department of Labor (DOL) published the final version of its "persuader rule" which dangerously impedes upon the attorney-client relationship between an employer and its labor counsel. We first wrote about this issue in 2011, explaining that the Labor-Management Reporting and Disclosure Act ("LMRDA") has long required employers, labor relations consultants and attorneys to report to the DOL certain "persuader activity" - actions undertaken to persuade employees not to vote for a union. No report was required, however, if the activity constituted "advice" and the lawyer or consultant did not deal directly with the employees. The new rule effectively eliminates the advice safeguard by requiring disclosure of the attorney-client relationship and attorney work product if labor counsel helps develops new policies, conducts training for supervisors, provides its client with materials to disseminate to employees, or helps plan or coordinate the employer's activities.

The DOL's final rule is contrary to the law and significantly discourages an employer from seeking labor law advice during the critical time period between the filing of a union election petition and an election. Accordingly, KZA and other affiliated Worklaw® Network firms are seeking an injunction to keep the DOL from enforcing the new rule. Click here to read the press release about this lawsuit.

We will keep you posted on the developments in this matter.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.