Persuader Rule

The DOL believes that this rule does not inflict a heavy burden on employers or consultants because the rule only requires employers or consultants to file a disclosure form, and the financial impact making disclosures are expected to be just over $7 million each year, which is significantly less than the $100 million threshold at which rules are considered to have a significant economic impact. The relevant forms, the LM-20 consultant report and LM-10 employer report, are only two and four pages, respectively, and very simple. The DOL estimates that it will receive 4,194 Form LM-20 reports from consultants and 2,777 Form LM-10 employer reports. Based on its research and data, the DOL estimates that it will take employers ninety-eight minutes to complete the LM-20 form at a cost of $151.14 per form and that it will take 147 minutes to complete the LM-10 form at a cost of $226.70 per form.
In the early stages of drafting there were many concerns about how the rule would affect small businesses. The small business believe that the persuader regulations impose a burden on those small business that do not have in-house legal and labor relations staff, these businesses may have difficulty responding to a union organizing campaign and lawfully communicating with their employees. This difficulty …show more content…
There have been three separate legal challengers in the forms of motions for declaratory and injunctive relief. These suits were brought before federal district courts in Arkansas, Minnesota, and Texas. Those challenges are based on the LMRDA's "advice exemption," which is eviscerated by the new rule, as well as the effect of the rule on the attorney-client privilege. According to these challenges, the rule also violates the First and Fifth Amendments to the U.S.