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Labor Department sets repeal of ‘persuader rule’ in motion

Joe Mont | June 9, 2017

On June 12, the U.S. Department of Labor will publish a Notice of Proposed Rulemaking to rescind a rule that would have required employers and labor-management consultants to report consultants’ indirect contact with workers during union organizing campaigns.

The rule, approved in March, applied to Section 203 of the Labor Management Reporting and Disclosure Act. It requires that labor organizations, consultants, and employers file reports and disclose expenditures on labor-management activities. The law is intended to prevent abuse, corruption, and improper practices by all parties.

What the Labor Department termed “a longstanding loophole,” however, allows employers to hire consultants to create materials, strategies and policies for organizing campaigns—and even to script managers’ communications with employees—without disclosing those arrangements, as long as the consultant does not directly...

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