A federal judge in Texas has issued a nationwide injunction blocking the US Department of Labour from implementing its new rule requiring extensive disclosures from companies that employ labour consultants and attorneys to help them deal with union-organising drives.

In an 86-page order, the court ruled that five business groups which filed suit on March 31 2016 to challenge the rule are likely to succeed on their claims that the Department of Labour exceeded its authority and promulgated a rule that is arbitrary and vague, and violates federal law and the Constitution. The judge ruled that plaintiffs were likely to suffer irreparable harm if the rule went forward as planned and that a nationwide injunction was appropriate because the plaintiffs and intervenors in the case consisted of multiple states as well as business groups with members in all 50 states.

For further information on this topic please contact Katherine A Roberts at Sidley Austin LLP by telephone (+1 213 896 6000) or email (kate.roberts@sidley.com). The Sidley website can be accessed at www.sidley.com.

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