District Court blocks federal ‘persuader’ rule

Listen to this article

An industry group is praising a U.S. District Court decision to block the Obama Administration’s so-called “persuader” rule.

The rule, originally planned to start applying to contracts this July, would have required company executives to disclose the identities of lawyers and other outside experts whom they might turn to for advice on resisting union-organization campaigns. The consultants would have had to disclose their identities and activities in public reports to the U.S. Department of Labor.

A district court for the Northern District of Texas found the requirement unlawful in a ruling on Wednesday. The regulation was challenged both in this court and another district court in Arkansas. The lawsuit in Arkansas was filed by a coalition of business groups, including the Associated Builders and Contractors, Inc., an organization that largely represents non-union shops.

ABC officials said the Texas court’s ruling was a victory for the free-speech rights of employers.

“Today’s decision is another repudiation of the U.S. Department of Labor’s drastic overreach under the Obama administration,” said Kristen Swearingen, ABC vice president of legislative and political affairs, in a news release.

She continued, “(ABC) is hopeful that under a Trump administration, the department will take input from the industries it regulates seriously in developing less burdensome rules that better facilitate the conditions for growth and prosperity.”

ABC has opposed the persuader rule since it was first proposed in 2011, according to the release.