Persuader Rule Update: Texas Federal Judge Issues Injunction Barring Enforcement of Persuader Rule Nationwide

Today, a federal judge in Texas issued a preliminary injunction barring enforcement of the Department of Labor's so-called "Persuader Rule" nationwide. Judge Sam Cummings, of the U.S. District Court for the Northern District of Texas Lubbock Division, issued an 86-page order granting a preliminary injunction requested by business groups suing the Obama administration.

Under the order, the Labor Department is prohibited from implementing the rule, which forces employers to report any "actions, conduct or communications" undertaken to "affect an employee's decisions regarding his or her representation or collective bargaining rights," until the case is settled by the courts. Thus, it appears that the Department of Labor failed to persuade a Texas Judge that its recently issued "Persuader Rule" does not infringe upon the First Amendment rights of employers and their counsel: "The chilling of speech protected by the First Amendment is in and of itself an irreparable injury," Cummings wrote in the order.

The National Association of Manufacturers, which filed the lawsuit with other groups, argues the rule will prevent employers from speaking on labor issues or seeking legal counsel.

This battle is far from over. We anticipate that the Department of Labor will appeal this ruling. We will continue to monitor any developments on this issue.

For a previous discussion of the Persuader Rule and its implications for employers and their counsel, please see our previous blog post: https://wimlaw.wordpress.com/2016/04/01/the-department-of-labor-issues-controversial-new-persuader-rule-and-its-reach-ex