Calling the Department of Labors new interpretation of its Persuader Rule defective to its core, the District Court for the Northern District of Texas issued a nationwide injunction in late June against the final rule. The ruling came just days before July 1, the date on which the new rules most problematic reporting requirements would have become fully effective.
The District Court determined the rule:
* Exceeds DOLs authority under the LMRDA
* Is arbitrary, capricious, and an abuse of discretion
* Unreasonably conflicts with state rules governing the practice of law
* Violates the attorney-client privilege.
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