Breaking>>> Persuader Rule Enjoined by Texas Court

From ABC and Lubbock:

The Lubbock Chamber of Commerce was celebrating “an enormous victory for the constitutional rights of job creators in Lubbock and across the nation” after a Lubbock federal judge issued a preliminary injunction to block the United States Department of Labor (DOL) from enforcing changes to the DOL Persuader Rule.

Senior United States District Judge Sam R. Cummings issued the injunction Monday after a hearing last week for a lawsuit challenging the labor department rule.

“We thank our legal counsel on this case, Lubbock attorney Fernando Bustos of Bustos Law Firm, PC, who is representing the Lubbock Chamber, NFIB, TAB, NAHB, and Texas Builders in the joint effort,” Beth Bridges, Lubbock chamber chairwoman, said in a statement from the chamber. “We are also grateful to the Ogletree Deakins and Kemp Smith law firms who have done such an effective job representing us and the job creators we serve.”

More here from Hal Coxson at Ogletree Deakins which handled the arguments in the Texas case:

On June 27, 2016, in National Federation of Independent Business et al. v. Perez, et al., the U.S. District Court of the Northern District of Texas (Lubbock Division) granted Plaintiffs’ Motion for a Preliminary Injunction, thereby enjoining the U.S. Department of Labor (DOL) from implementing and enforcing its revised persuader rule on a national basis. The Court found that Plaintiffs’ challenge to the new rule, which was set to become effective July 1, 2016, has a substantial likelihood of success on the merits and that Plaintiffs have shown that they would be irreparably harmed if the rule was not enjoined.

This lawsuit was filed on March 31, 2016, by Plaintiffs the National Federation of Independent Business, the Lubbock Chamber of Commerce, the Texas Association of Business, the National Association of Home Builders, and the Texas Association of Builders.  Ogletree Deakins represents the Plaintiffs in this case.  The State of Texas along with nine other states intervened in support of Plaintiffs’ position.

DOL’s new rule significantly revised and expanded the reporting and disclosure requirements imposed on employers and advisors (including consultants and lawyers) under the Labor-Management Reporting and Disclosure Act (LMRDA). If implemented, DOL’s new rule would require employers and consultants to report and disclose direct or indirect communications that have an object to persuade employees with regard to union organizing—including what was formerly considered exempt “advice” provided to management by consultants, including lawyers.

Plaintiffs contend that the DOL’s new rule violates the LMRDA, the First and Fifth Amendments to the U.S. Constitution, and the Regulatory Flexibility Act.

Since the DOL promulgated its new rule, three separate legal challenges have been filed in federal district courts in Little Rock, Arkansas, Minneapolis, Minnesota, and Lubbock, Texas. The U.S. District Court for the District of Minnesota issued a decision in Labnet, Inc. v. U.S. Department of Labor on June 22, 2016, holding that while plaintiffs there had a substantial likelihood of success on the merits of their claim, their motion for a preliminary injunction was denied because, according to the Court, Plaintiffs had failed to make a sufficient showing of irreparable harm.

You Keep Using That Word…

From the Director – I’ve got Orlando on my mind!

This post is a preview of the CUE newsletter coming your way on Friday.

It’s May, and everyone at CUE is getting ready to head for Orlando for our big Spring show, so we’ll be sending a double-size bonus newsletter for you on Friday since we won’t be printing another newsletter until May 27^th. 

I’m really excited about the agenda we have put together for this show. I reviewed a bunch of the presentations over the weekend and was blown away by the content our speakers have put together for you.

The conference content is focused on three distinct areas, all of which are timely and strategic. Our sessions will cover practical labor relations for employers in the new labor environment; improving communications with your workforce; and research proven advice on improving workforce engagement.

Word of the Week – Engagement

We have nearly 400 registered attendees, and this is shaping up to be the one of the largest CUE events ever. Register here.

Did You Miss Our Webinar?  

ICYMI – Did you miss our latest webinar, CUE and the Persuader Rule – the Good, the Bad, and the Ugly presented by Phil Wilson of Labor Relations Institute?

We’re sorry you weren’t able to attend, but you can listen to the webinar recording and get the slide deck at the links below.

Phil Wilson and Doug Seaton will be covering the latest updates on the Persuader Rule, including any possible court decisions on an injunction at the Orlando CUE Conference on May 16^th.

Watch the Recording | Download the Presentation (member login required)