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As we reported last month, the DOL was considering what to do with the enjoined persuader rules, new regulations that would have drastically changed the interpretation of the advice exemption to the LMRDA reporting requirements. In sum, the new rules effectively narrowed the advice exemption to require reporting of a number of activities that had clearly fell within the exemption for some 50 years.
Earlier this week, the Department of Labor published a notice of its intent to rescind the persuader rule: Rescission of Rule Interpreting Advice Exemption, 82 Federal Register 26877 (June 12, 2017) The notice states the proposed rescission is “part of the Department’s continuing effort to fairly effectuate the reporting requirements of the LMRDA.”
The reason given behind the rescission is that it “it would ensure that any future changes to the Department’s interpretation would reflect additional consideration of possible alternative interpretations. . .and could address the concerns that have been raised by the reviewing courts.” As to this latter consideration, the rule change was enjoined by a federal court last year and never went into effect.
Comments on the proposed rescission are due on or before August 11, 2017. This action by the Department of Labor isn’t terribly surprising given the change in administration and the opposition to the rule change.
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