Media outlets are reporting that the Department of Labor (DOL) officially is moving to drop its “persuader rule” that would have imposed significant reporting requirements on companies and consultants related to union-avoidance efforts.
On May 22, the DOL formally proposed to revoke the controversial rule. The rule has been tied up in litigation for months, and a challenge currently is pending in the Fifth Circuit Court of Appeals. The DOL’s move to rescind the rule, however, likely will moot those proceedings or, at a minimum, offers an indication that the government may withdraw its opposition to the challenge. We will update the blog once the process is complete. This is great news for companies seeking to remain union-free.