Court win on union persuader rule

By NFIB

A U.S. District Court granted a request by the National Federation of Independent Business (NFIB) to temporarily block the Department of Labor’s (DOL) new union persuader rule until the rule’s constitutionality is settled.

“When facing union organization, small business owners are in need of legal advice,” said NFIB Small Business Legal Center Executive Director Karen Harned. “Labor law is extremely complex and without legal consultation, small business owners will not know what rights they have and what they can and cannot discuss with their employees.

“The rule’s constitutionality needs to be decided before small business owners are held liable for potentially ruinous penalties.”

NFIB joined the National Association of Home Builders, the Texas Association of Business, the Texas Association of Builders, and the Lubbock Chamber of Commerce in filing a motion before the U.S. District Court for the Northern District of Texas. The motion requested that the court prevent implementation or enforcement of the DOL’s new interpretation of the “persuader rule.” The new rule would require all union-related communication, as well as fees and arrangements, between an attorney and an employer to be publicly reported to DOL. A failure to report could result in criminal penalties for business owners.

The business groups maintain that the rule violates the First Amendment. Also, according to the plaintiffs, the rule violates the Due Process Clause of the Fourteenth Amendment and the Regulatory Flexibility Act (RFA).

“This is just another attempt by the Obama administration to tilt the scales in favor of unionization,” Harned continued. “We believe that DOL has overstepped its executive authority and hope that the courts will eventually strike down this new rule. We applaud the U.S. District Court for temporarily suspending any implementation of this rule before a trial has taken place.”

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