U.S. Labour Department rescinds “persuader rule” on union campaigns

The rule had come under attack from corporate trade groups and in contrast was championed by unions.

On Thursday, in a major step, the U.S. Labour Department has rescinded a rule that require corporate employers and their lawyers to provide additional disclosures on how they respond to union campaigns.

Former U.S. President Barrack Obama, as part of major labour reforms, had incorporated this “persuader rule” which was championed by unions and attacked by corporate trade groups.

The rule never took off since a federal Texas judge blocked its implementation when business groups, including the National Federation of Independent Business, sued saying the rule was in violation of federal labour law.

Since then the Labour Department had appealed the decision in the 5th U.S. Circuit Court of Appeals, but after Donald Trump was elected President, the department decided to take multiple extensions for filing briefs.

That exercise came to its conclusion on Thursday, when the Labour Department announced the removal of the rule through its public notice. It will now accept public comments starting from June 12.

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Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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