MCLA Launches Lawsuit to Fight Dangerous Persuader Rule

Manufacturers’ Ability to Communicate with Workforce Stunted

Washington, D.C., March 30, 2016 – National Association of Manufacturers Senior Vice President and General Counsel Linda Kelly issued the following statement after the Manufacturers’ Center for Legal Action (MCLA) announced its challenge to the Department of Labor’s persuader rule in the U.S. District Court for the Eastern District of Arkansas, joining national, state and local business groups. The new regulation dictates how employers can talk to their employees by instituting new reporting requirements:

“The Department of Labor has violated manufacturers’ First Amendment rights and the Fifth Amendment’s due process clause by greatly restricting manufacturers’ ability to educate and inform their workforce.

This complicated, vague rule fails to give manufacturers fair notice on what actions are considered forbidden and what forms of communication and outreach are considered reportable. Criminal liability will now be thrust on manufacturers based on a rule that is confusing and open ended. Rather than risk criminal penalty from a lack of reporting, employers will simply stop communicating with their employees on important issues. This is a lose-lose situation. Businesses will suffer as employers and employees alike will find the workplace more confusing to navigate. Anyone who thinks that’s good for workers is sorely mistaken.”

The MCLA serves as the leading voice of manufacturers in the courts, representing the more than 12 million men and women who make things in the United States. The MCLA strategically engages in litigation as a direct party, intervenes in litigation important to our manufacturers and weighs in as amicus curiae on important cases.To learn more about the MCLA, visit our website.

-NAM-

The National Association of Manufacturers (NAM) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12 million men and women, contributes $2.17 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.