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Court Issues Permanent Injunction on Persuader Rule

On November 16, 2016, the U.S. District Court for the Northern District of Texas issued a permanent injunction for the Department of Labor’s (DOL) “persuader” rule. The nationwide injunction prevents the DOL from implementing any and all aspects of the rule.

The DOL's rule made significant changes to reporting and disclosure requirements for employers, attorneys, and other experts under the Labor Management Reporting and Disclosure Act. The rule effectively made all interactions between employers and their labor counsel reportable, limiting employer access to counsel and therefore making it easier for employers to violate labor laws.

The Coalition for a Democratic Workplace (CDW), of which IEC is a founding member, filed an amicus brief in the case. The ruling can still be appealed by the DOL, but the permanent injunction provides the new incoming administration time to consider rolling back the rule for good. IEC will continue to work to stop this rule from taking effect.

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