Resolution Introduced in Congress to Revoke ‘Persuader’ Rule

In late April, Congressman Bradley Byrne (R-AL) introduced a resolution (H.J. Res. 87) under the Congressional Review Act to block the Department of Labor’s (DOL) new rule expanding the “advice exemption,” which triggers reporting requirements to the DOL to include businesses that hire outside counsel to advise senior executives on labor relations and other workplace issues. Previously, reporting requirements were only required if the consultant spoke directly to the company’s employees. The new rule, published in the Federal Register on March 24, will negatively impact small merit shop electrical contractor’s ability to obtain expertise on labor matters. The Coalition for a Democratic Workplace (CDW) recently released a video explaining how the new rule would negatively impact employers seeking guidance.

In addition, the Subcommittee on Health, Employment, Labor, and Pensions of the Committee on Education and the Workforce held a hearing, titled “The Persuader Rule: The Administration’s Latest Attack on Employer Free Speech and Worker Free Choice,” to highlight the negative effects this rule would have on small businesses seeking expertise on labor matters. Multiple lawsuits are expected on the rule, with one in particular pending in the Federal District Court in Arkansas filed by CDW. Recently, the National Federation of Independent Business, National Association of Home Builders, the Texas Association of Business, the Texas Association of Builders, and the Lubbock Chamber of Commerce filed a motion before the U.S. District Court for the Northern District of Texas to temporarily block the rule. IEC will continue to fight against this damaging rule in Congress and the courts with its partners in the CDW. For more information, visit the CDW’s issue summary on the new rule.