Client Alerts & Insights
DOL Takes Action to Rescind the Persuader Rule
May 31, 2017
Authored By:
In March 2016, the Department of Labor (“DOL”) published a revised “Persuader Rule” requiring attorneys involved in union organizational campaigns to file broad public financial disclosures about their own and their law firm’s compensation related to these efforts. Traditionally, persuader activity had to be publically reported only if an attorney communicated directly with a client’s employees regarding union activity. The revision expanded these public reporting requirements to include any advice that “indirectly persuades” a client’s employees regarding union organizing and collective bargaining, even if the persuader had no direct contact with employees. The revisions were aimed at, among other things, discouraging law firms from being involved in organizational campaigns to avoid such disclosures. The revisions, however, also infringed on the attorney-client privilege.
The DOL’s revised Persuader Rule was barred by a permanent injunction on November 16, 2016, when a Texas court expressed concern that attorneys would be forced to violate the attorney-client privilege by disclosing clients’ identities, fee arrangements, and the nature of the advice and services provided. Under President Obama, the DOL appealed this decision but the Trump Administration had not addressed this issue until last week. The DOL now has submitted a proposed rule designed to rescind the Persuader Rule – signaling a clear position change from the previous administration. The new Secretary of Labor, Alexander Acosta, confirmed the change when he publicly announced this rule as a step to rescind the Persuader Rule in an op-ed published in the Wall Street Journal. While the rulemaking process eventually will require soliciting and weighing public comments, the outcome is expected to be the elimination of the Obama-Era Persuader Rule.
For more information on this topic please contact a member of our Labor & Employment Practice Group.
Eric Baisden at 216.363.4676 or ebaisden@beneschlaw.com
Pete Kirsanow at 216.363.4481 or pkirsanow@beneschlaw.com
Shannon Byrne at 216.363.4578 or sbyrne@beneschlaw.com
Latest News
Social Media Might Have to Rethink Platform Design and Features as Courts Reject Communications Decency Act, Section 230 Defense
On April 10, 2026, on appeal from a motion to dismiss, the Massachusetts Supreme Judicial Court held that section 230 of the Communications Decency Act did not bar Massachusetts’s claims that Meta engaged in unfair business practices by creating a platform that was addictive to teens and failing to warn the public about it.
SDNY Bankruptcy Court: Solvent Debtors Face Higher Hurdle to Avoid Default Interest Under 11 U.S.C. § 506(b)
Key Takeaways Following a recent decision from the U.S. Bankruptcy Court for the Southern District of New York, solvent debtors …
$2B Trade Secrets Verdict Overturned by the Virginia Supreme Court
Recently, the Virginia Supreme Court vacated a $2B jury award and ordered a new trial in a state trade secrets action. The justices held that the circuit court judge made four significant errors leading to Virginia’s largest jury award. Significantly, according to the justices, the circuit court judge put an improper burden of proof on defendants to show that its sales were unrelated to the misappropriation to avoid plaintiff being awarded defendant’s full sales revenue as opposed to the plaintiff having the burden to show defendant’s actions proximately caused plaintiff’s damages.
Ohio Senate Introduces Bipartisan Bill to Establish Paid Family and Medical Leave
On April 23, 2026, a new bipartisan bill was introduced in the Ohio Senate that would provide paid family and medical leave to Ohio workers. Sponsored by Democrat Beth Litson and Republican Louis W. Blessing III, Senate Bill 396 largely mirrors programs already established in several other states, including California and New York.