Federal Court Blocks Enforcement of Labor Advice Disclosure Rule

November 16 U. S. District Judge Sam R. Cummings of the Northern District of Texas in Lubbock issued a permanent injunction blocking the U. S. Department of Labor from enforcing its new rule promulgated March 24, which would have required lawyers and other consultants providing advice to employers regarding opposition to union representation of their employees to publicly disclose their involvement. Judge Cummings ruled that the regulation was an unconstitutional infringement of the employers’ first amendment right to hire and consult with lawyers about labor law matters.

The American Bar Association and the National Federation of Independent Businesses had opposed enforcement of the rule. The ABA specifically objected that the Labor Department rule was interfering with attorney-client privilege. Judge Cummings rulings were issued in the case of National Federation of Independent Businesses v. Perez,  5:16–CV-066-C.