The U.S. District Court for the District of Minnesota today ruled in Labnet Inc. d/b/a Worklaw Network, et al v. United States Department of Labor, et al, that the plaintiffs have a strong likelihood of success on the merits of their lawsuit challenging the DOL’s new “persuader” rule, but refused to stay or enjoin the rule. Therefore, for now, the rule will go into effect on July 1. However, based on the judge’s comments, there is reason for optimism that the rule ultimately will be found invalid. There are two other lawsuits challenging the rule pending, in Arkansas and Texas, where rulings have not been issued.

The new  rule  requires  employers  as  well  as  consultants/attorneys  to  report  to  the  DOL  all arrangements  in  which  an  “object”  (directly  or  indirectly)  is  to  persuade  employees  in  the exercise  of  their  “rights  to  organize  and  bargain  collectively  through  representatives  of  their own  choosing”  under  federal  labor  law.    The rule significantly broadens labor services that are reportable, and greatly narrows the legal “advice” exception.

 

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Philip B. Rosen Philip B. Rosen

Philip B. Rosen is a Principal in the New York City office of Jackson Lewis P.C. and a member of the Firm’s Management Committee. Mr. Rosen also leads the firm’s Labor Practice Group. He joined the Firm in 1979 and served as Managing…

Philip B. Rosen is a Principal in the New York City office of Jackson Lewis P.C. and a member of the Firm’s Management Committee. Mr. Rosen also leads the firm’s Labor Practice Group. He joined the Firm in 1979 and served as Managing Partner of the New York City office from 1989 to 2009.

Mr. Rosen lectures extensively, conducts management training, and advises clients with respect to legislative and regulatory initiatives, corporate strategies, business ethics, social media, reorganizations and reductions-in-force, purchase/sale transactions, sexual harassment and other workplace conduct rules, compliance with the Americans With Disabilities Act, wrongful discharge and other workplace litigation, corporate campaigns and union organizing matters, collective bargaining, arbitration and National Labor Relations Board proceedings. He has been quoted by the press on many labor matters, including the National Labor Relations Board’s recent initiatives on protected concerted activity and the proposed Notice Posting requirements.