TAB Statement on “Persuader Rule”
Department of Labor persuader rule would make it difficult to consult lawyers or other experts when faced with union organizing
AUSTIN, TX— Small business owners could be deprived of the right to consult a lawyer during a union organizing election under the Department of Labor’s (DOL) newly announced “persuader” rule. The new rule changes standards that have held for decades and would place a small business at a severe disadvantage should a union attempt to organize its workers.
“It should not be the job of the Department of Labor to represent the interests of unions, yet, that is exactly what they are doing,” said Texas Association of Business CEO Bill Hammond. “This rule does nothing but hurt small businesses in Texas and around the nation and must be stopped.”
The persuader rule has previously governed only individuals who directly communicate with workers. A persuader is required to file wide-ranging disclosures with the DOL. Under the new rule, for the first time, merely providing legal advice about how to communicate with employees would cause a lawyer to fall under the persuader rule.
“We feel this broadens the rule to the point where it is unworkable for employers,” said Hammond. “It also raises questions about what is and is not covered by this new rule. Some could interpret the rule as covering business owners who hear a speech about labor organization during a conference. It adds a new level of burden to employers that simply isn’t needed.”
The rule also will require new, complex and unprecedented levels of disclosure for consultants, associations and other professionals who provide advice to employers about how to legally communicate with their employees.
“We expect there will be legal challenges to this new proposal, and the Texas Association of Business stands ready to support those challenges against this rule change that will hurt business and hurt the economy,” said Hammond
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