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Businesses and Lawyers Object to Labor Department's New 'Persuader' Rule

3.23.16

The article, “Businesses and Lawyers Object to Labor Department's New 'Persuader' Rule,” featured in the Wall Street Journal, discussed how the business community is gearing up for a fight with the Obama administration over a U.S. Labor Department regulation issued Wednesday that gives unions greater knowledge of discussions employers are having with legal counsel about resisting union-organizing campaigns.

Fisher Phillips, a national law firm representing employers, predicted in a legal alert posted online that the regulation would be challenged in court:

The U.S. Department of Labor's new "persuader" rule would force attorneys and their clients to report in public records their confidential attorney-client and financial relationships, providing an unfair boost to unions in their organizing efforts.

For this reason, we expect numerous business organizations will file lawsuits seeking court orders blocking implementation of the new regulation.

According to Fisher Phillips: "Under the new rule, pure legal advice would still be protected, provided there is no underlying object to persuade, but no longer would tactical consultations with your lawyer about maintaining union- free status be immune from persuader reporting requirements."

To read the full article, please visit WSJ.

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