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Temporary Injunction Issued on Department of Labor ‘Persuader Rule’

A U.S. District Court judge in the Northern District of Texas has placed a temporary hold on a key Department of Labor rule regarding employers’ ability to influence union matters.

In late June, the judge handed down an 86-page order that granted a preliminary injunction against the DOL’s “persuader rule,” which business groups have aggressively opposed ever since it went into effect in March 2016. Several of these groups, including the National Association of Manufacturers, are currently suing the President Barack Obama administration over what they consider executive overreach.

A controversial measure

The persuader rule mandates that employers report any actions or policies that could impact an employee’s decisions related to collective bargaining rights or union representation. With this recent order, the the rule will not be enforceable nationwide until the courts settle the issue. In other words, it could be several months or more than a year until we know if the rule is here to stay.

The groups in opposition to the persuader rule argue that it prevents businesses and organizations from speaking on labor issues or even seeking legal counsel on the issue. Texas Attorney General Ken Paxton is also opposed to the rule, stating publicly that it places too much power in the Executive Branch and limits the freedom of businesses.

If you have any questions about how this ruling might impact your business or organization, or if you would like to learn more about how you should deal with union issues within your company, speak with a knowledgeable Dallas attorney at Whistleblower Law for Managers today.

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