The U.S. Department of Labor has rescinded the 2016 Persuader Rule, which exceeded the authority of the Labor-Management Reporting and Disclosure Act (LMRDA).
The Persuader Rule impinged on attorney-client privilege by requiring confidential information to be part of disclosures and was strongly condemned by many stakeholders, including the American Bar Association.
A federal court has ruled that the Persuader Rule was incompatible with the law and client confidentiality.
“For decades, the Department enforced an easy-to-understand regulation: Personal interactions with employees done by employers’ consultants triggered reporting obligations, but advice between a client and attorney did not,” the Office of Policy’s Deputy Assistant Secretary Nathan Mehrens remarked.
“By rescinding this Rule, the Department stands up for the rights of Americans to ask a question of their attorney without mandated disclosure to the government.”