On Wednesday, the U.S. Department of Labor finalized its much anticipated “persuader” rule. This rule requires employers and legal consultants to report any attempt or arrangement to persuade employees, either directly or indirectly, regarding the right to organize or bargain collectively. At this point, the final rule will take effect on July 1, 2016. We expect there will be challenges to the rule as the American Bar Association and other organizations have expressed concern about the impact of the rule on the attorney-client privilege.
The final rule does exempt certain activities and associations from reporting, such as survey firms and employee associations, but in most other respects, the reporting requirement comprehensively impacts all employers and legal consultants.
We will do a thorough review and then provide a more detailed analysis to update you on the final version of the rule and its impact. In the meantime, if you have any questions or would like to discuss how this may impact your business, please do not hesitate to contact us.