Seyfarth Synopsis: DOL states that the Rule is only applicable to arrangements and agreements made on or after July 1, 2016, and to payments made pursuant to arrangements and agreements entered into on or after July 1, 2016.

As a follow-up to our recent blog post regarding the motion for preliminary injunction that was filed by the plaintiffs in the first lawsuit challenging the DOL’s Final Persuader Rule, Associated Builders and Contractors of Arkansas v. Perez (Case No. 4:16-cv-169, U.S. District Court for the Eastern District of Arkansas), we have learned that the DOL has stated in that case its position on the true effective date of the Rule.

After a status conference was held in that case, the DOL filed a status report in which it informed the court that while the effective date of the Rule is April 25, 2016, the Rule is only applicable to arrangements and agreements made on or after July 1, 2016, and to payments made pursuant to arrangements and agreements entered into on or after July 1, 2016. The DOL also stated that it will not apply the Rule to arrangements or agreements entered into prior to July 1, 2016, and that consequently, no employer, labor relations consultant, or other independent contractor will have to report or keep records on any activities engaged in prior to July 1 that are not presently subject to reporting, or file the new Forms LM-10 or LM-20 (revised pursuant to the Rule) for any purpose prior to July 1.