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Secretary of Labor Thomas E. Perez
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News Release

OLMS News Release: [06/20/2011]
Contact Name: Michael Trupo or Jason Surbey
Phone Number: (202) 693-6588 or x4668
Release Number: 11-0924-NAT

US Labor Department announces proposed rule concerning reporting on use of labor relations consultants

WASHINGTON — The U.S. Department of Labor today announced a proposed rule to revise the interpretation of "advice" as it pertains to the employer and labor relations consultant persuader reporting requirements of Section 203 of the Labor-Management Reporting and Disclosure Act. The proposal adopts the plain meaning of the term "advice" as "an oral or written recommendation regarding a decision or course of conduct."

Section 203 of the LMRDA requires the disclosure of agreements or arrangements between employers and labor relations consultants when a consultant undertakes or agrees to undertake activities that seek to directly or indirectly persuade workers concerning whether or not to exercise, or the manner of exercising, their rights to organize and bargain collectively. Neither an employer nor a consultant is required to file a report with the Department of Labor covering the services of a consultant if the consultant is merely giving or agreeing to give advice to the employer.

Under the proposal, an agreement would be reportable in any case where the consultant engages in persuader activities that go beyond the plain meaning of "advice." Reportable persuader activities would include those in which a consultant engages in any actions, conduct or communications on behalf of an employer that would directly or indirectly persuade workers concerning their rights to organize and bargain collectively, regardless of whether or not the consultant has direct contact with workers. An agreement also would be reportable in any case in which a consultant engages in specific persuader actions, conduct or communications regardless of whether advice is given, such as when a consultant plans or orchestrates a campaign or program to avoid or counter a union organizing or collective bargaining effort.

The LMRDA does not regulate the actual persuader activities or statements, and the proposed rule only focuses on whether the activities would have to be publicly disclosed. The current interpretation of "advice" has resulted in significant underreporting of employer and consultant persuader agreements. Better disclosure is critical to helping workers make informed decisions about their right to organize and bargain collectively.

The proposed rule will be published June 21 in the Federal Register and is available at http://s.dol.gov/G9. The public can submit comments online at http://www.regulations.gov. The deadline for comments is Aug. 22.