On June 15, the Fifth Circuit granted the government’s request to stay the appeal while the Department of Labor (“DOL”) decides whether to rescind the “persuader rule” issued under the Obama Administration. The group of business associations that filed the lawsuit challenging the rule also opposed the stay. They argued it was necessary to decide the case on the merits to avoid future lawsuits if DOL decides not to rescind the rule, or future administrations once again try to expand the scope of reportable activities under the Labor-Management Reporting and Disclosure Act.
The Fifth Circuit sided with the government and held the case in abeyance pending DOL’s rulemaking process or until December 12, 2017. The public will have 60 days from the date the DOL published its Notice of Proposed Rulemaking to comment on whether the government should rescind the rule. Stay tuned for further updates.