Small Businesses Dodge Another Burdensome Labor Regulation

Date: November 25, 2016

Judge’s Ruling To Permanently Block “Persuader Rule” Means Less Headaches For Employers

Recently, small businesses won a victory against the Obama Administration’s burdensome labor regulations with an order permanently blocking the union “persuader rule.” The Hill reported that Federal court Judge Sam Cummings granted a motion for summary judgment turning “the temporary stay he ordered in June into a permanent injunction.” In a two-page order, the judge said the rule “should be held unlawful and set aside.” Examining just why this was an important ruling for small businesses, Bloomberg BNA reported that the rule “would have increased disclosure requirements for employers that use advisers, such as law firms, to help them fight unionization drives.” Employers were opposed to this rule because it represented an effort by the Labor Department “to favor labor unions in organizing campaigns,” according to NFIB attorney Jeffrey Londa. The group was among those suing to stop the regulation’s enforcement. NFIB Small Business Legal Center Executive Director Karen Harned, responding to the ruling, said, “Small business owners today are relieved that they will still have the right to seek legal advice when facing a union election. Labor law is extremely complicated, and small business owners rely on the advice of experts to help them navigate through unfamiliar territory.”

What Happens Next

The Wall Street Journal noted that the Labor Department declined to comment on the ruling, meaning it is unclear if, or when, the Obama Administration might attempt to appeal the ruling. However, Bloomberg BNA pointed out that according to Londa, “the permanent injunction moots the appeal already pending in the Fifth Circuit,” meaning that “if the government chooses to appeal Cummings’ new order, it would have to file a new appeal.” Ultimately, it appears unlikely that the Labor Department will be able to resurrect this burdensome mandate.

What This Means For Small Businesses

Ultimately, this ruling prevents small businesses from being subjected to yet another burdensome labor mandate under the Obama Administration.

Additional Reading

Construction Equipment also covered the ruling blocking the “persuader rule.”

Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.

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