NSBA Files Comments on DOL “Persuader” Regulations

September 27, 2011

As previously reported, the Department of Labor (DOL) earlier this summer issued a proposed rule that would dramatically narrow the “advice” exemption to the employer reporting obligations under the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). The underlying reporting obligations are often referred to as the “persuader” rule or the persuader reporting obligations.

NSBA filed comments on the proposed rule last week which argue that the proposed rule:

  • Is contrary to Congressional intent (for five different reasons);
  • Upends a half century of settled law, creates uncertainty and replaces a relatively clear bright line rule with one riddled with ambiguity;
  • Imposes substantially higher costs than the DOL claims;
  • Will harm employers’ right to secure advice;
  • Violates attorney-client privilege; and
  • Lacks an adequate evidentiary basis.

NSBA urged DOL to withdraw the proposed rule entirely. Please click here to view the complete comments submitted by NSBA.