District judge puts a hold on ‘persuader rule’
This March, the Department of Labor issued the ‘persuader rule,’ making it a requirement that employers and hired consultants disclose reports about both indirect and direct persuader activities. Before the rule, companies were able to hire attorneys for consultancy without reporting it, as long as they did not directly interact with employees.
U.S. District Judge Sam Cummings has put a temporary hold on the rule with a preliminary injunction, meaning the DOL cannot use the rule until the case is settled in court. Cummings believes the rule is an unconstitutional violation of the First Amendment and defective on many grounds.
“The chilling of speech protected by the First Amendment is in and of itself an irreparable injury,” wrote Cummings.
Before Cummings’ hold on the rule, it was scheduled to take effect July 1.