On June 27, 2016 a Lubbock federal judge issued a preliminary injunction to block the United States Department of Labor (DOL) from enforcing changes to the DOL Persuader Rule.
Senior United States District Judge Sam R. Cummings issued the injunction Monday after a hearing last week for a lawsuit challenging the labor department rule.
On June 27, 2016 in National Federation of Independent Business et al. v. Perez, et al., the U.S. District Court of the Northern District of Texas (Lubbock Division) granted Plaintiffs’ Motion for a Preliminary Injunction, thereby enjoining the U.S. Department of Labor (DOL) from implementing and enforcing its revised persuader rule on a national basis. The Court found that Plaintiffs’ challenge to the new rule, which was set to become effective July 1, 2016, has a substantial likelihood of success on the merits and that Plaintiffs have shown that they would be irreparably harmed if the rule was not enjoined.
This lawsuit was filed on March 31, 2016 by Plaintiffs, the National Federation of Independent Business, the Lubbock Chamber of Commerce, the Texas Association of Business, the National Association of Home Builders, and the Texas Association of Builders. Ogletree Deakins represents the Plaintiffs in this case. The State of Texas along with nine other states intervened in support of Plaintiffs’ position.
DOL’s new rule significantly revised and expanded the reporting and disclosure requirements imposed on employers and advisors (including consultants and lawyers) under the Labor-Management Reporting and Disclosure Act (LMRDA). If implemented, DOL’s new rule would require employers and consultants to report and disclose direct or indirect communications that have an object to persuade employees with regard to union organizing – including what was formerly considered exempt “advice” provided to management by consultants, including lawyers.
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