As you may recall from a previous notice, the Department of Labor (“DOL”) issued the new Persuader Final Rule on March 24, 2016, which required increased reporting of an employer’s expenses connected to labor relations consultant services. The new rule required increased reporting for “direct” and “indirect” consultant services, which, according to many employers and business groups, unfairly infringed on free speech and on a business’s attorney-client privilege.

On June 27, 2016, a Federal judge in Texas issued a nationwide preliminary injunction preventing the Department of Labor from implementing the rule on July 1, 2016. The judge stated that a nationwide injunction was appropriate pending the outcome of a lawsuit filed by the National Association of Manufacturers and other business groups claiming that the new Persuader Final Rule infringed on free speech and the attorney-client privilege in seeking advice from counsel on labor relations.

Dealerships are not required to comply with the increased reporting requirements that were set to be implemented July 1, 2016 unless and until a final order is entered by the district court in Texas or by an appellate court.

If you have any questions about the DOL’s Final Persuader Rule, the current reporting rules, or if you would like additional information, please do not hesitate to contact a member of the Dealer Practice Group at 248-645-9300 or by email.