Executive Summary: Earlier this month, the Department of Labor created a very brief “grandfather” period for persuader agreements entered into BEFORE July 1, 2016.
If you are interested in joining CUE while this very limited this window period is open, it’s simple. Just go to the CUE website and fill out our contact form.
The Department of Labor (DOL) recently changed what it considers reportable “persuader” activity under the Labor-Management Relations Act. Any agreements entered on or after July 1, 2016 with attorneys or consultants to provide a number of common services (supervisor training, drafting of employee communications and certain policy materials, providing union avoidance-related planning help, to name just a few) must be reported to DOL, will trigger other, broader labor relations reporting for the attorneys or consultants, and will be publicly disclosed. Although CUE is exempt from many of these reporting requirements as a trade association, we believe it is prudent for CUE and for you to have this document on file.
In June 2016, the DOL clarified how it will handle agreements entered into before July 1, 2016. Andrew Auerbach, the Deputy Director in charge of reporting, stated the DOL’s position that:
“Services and payments made pursuant to a multi-year agreement, even if they occur after July 1, are not required to be reported on the new Form LM-20, so long as the agreement was signed prior to July 1.”
I know this reporting requirement may be confusing, especially if you haven’t been following it closely. Please don’t hesitate to contact Michael VanDervort at 1-210-545-3499 if you have any questions or concerns. Whether you join CUE right now or not, I strongly encourage you to contact your own labor counsel for guidance on this matter if you have not already discussed it with them.
It’s Friday, but I might be able to make your day a little brighter!
There is a big piece of breaking news related to the DOL persuader rule. It’s not all completely clear right now, but several sources including the US Chamber of Commerce are reporting, and the DOL seems to be confirming that any agreement related to so-called “persuader” services including legal, consulting and association services that are in place prior to July 1st will NOT BE subject to reporting under the new requirements.
>>>>>Join CUE here
The excerpt below is from a status report filed by DOL in the Arkansas challenge to the new LRMDA requirements, the , pertinent part which is excerpted below:
On March 24, 2016, the Department of Labor’s (“the Department”) Office
of Labor-Management Standards published a rule entitled “Interpretation
of the ‘Advice’ Exemption in Section 203(c) of the Labor-Management
Reporting and Disclosure Act,” 81 Fed. Reg. 15924 (“the Rule”). While
the effective date of the Rule is April 25, 2016, the rule is only applicable
to arrangements and agreements made on or after July 1, 2016, and to
payments made pursuant to arrangements and agreements entered into on
or after July 1, 2016. 81 Fed Reg. 15924. The Rule revises the reporting
requirements, and related recordkeeping requirements, for certain
agreements and arrangements entered into between employers and labor
relations consultants or other independent contractors, and payments made
pursuant to those agreements and arrangements. The Department will not
apply the Rule to arrangements or agreements entered into prior to July 1,
2016, or payments made pursuant to such arrangements or agreements.
Consequently, under the Rule no employer, labor relations consultant, or
other independent contractor will have to report or keep records on any
activities engaged in prior to July 1 that are not presently subject to
reporting, or file the new Forms LM-10 or LM-20 (revised pursuant to the
Rule) for any purpose prior to July 1.
NOTE: THIS IS NOT INTENDED AS LEGAL ADVICE. BE SURE TO SEEK LEGAL ADVICE ON THIS MATTER BEFORE TAKING ANY ACTION!!!
Bill Robinson of the Frost Brown Todd LLC will be testifying in opposition of the administration’s “Persuader Rule” today, April 27, at 10:00 a.m. EDT, before the U.S. House Subcommittee on Health, Employment, Labor and Pensions. Bill served as President of the American Bar Association when the DOL first proposed the new Rule, and signed the ABA’s letter in opposition. Bill will be addressing, among other things, the impact of the new Rule on the confidentiality of legal advice given to employers.
As reported in Politico Morning Shift, today’s witnesses include Joseph Baumgarten, a lawyer with Proskauer Rose LLP; Jonathan Newman, a lawyer with Sherman, Dunn, Cohen, Leifer & Yellig, P.C.; Wm. T. Robinson III, a lawyer with Frost Brown Todd LLC; and Sharon Sellers, who will testify for the Society for Human Resource Management.
A live stream of the Subcommittee’s Hearing is available at: