Employers Face Limited Window on Persuader Rule: July 1, 2016

Employers Have A Limited Window of Opportunity To Make Agreements Under Existing Rules

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. 

For more information on this rule,  you can go to the LRI website here or the DOL website here.

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.