Two Trade Groups Come Out Against Labor Department New Rules Regarding “Persuaders”

On Wednesday, the U.S. Department of Labor announced some new regulations involving labor consultants and the National Retail Federation and the National Association of Manufacturers; two big trade associations, have come out against the recently announced regulations.

The changes in the regulation now require employers to submit appropriate reports to the labor department when they hire consultants in order to help them fend off drives organized by unions. This needs to be done even of the consultants, often known as "persuaders" act only as advisers and are not involved in addressing the employees directly.

Earlier, the requirement of the reports came only when consultants addressed the employees. The new regulations will come to effect for contracts that are signed after July 1.

The reports are supposed to lay out a detail list of including the name of the consultant name and the address along with the amount paid. It should also mention details like, if the consultant spoke to employees directly or rendered any advises or coached the supervisors and managers about what to say to the employees. It should also mention if the consultant helps in design a website for the employees.

In a statement, Jay Timmons, the chief executive of the National Association of Manufacturers said, "This unwarranted action by the Department of Labor will further restrict employers' ability to educate and inform employees on essential issues in the workplace."