Rutledge Releases Statement on Persuader Rule Reversal
July 17, 2018
Says, ‘This decision by the Department of Labor is a win for small businesses and other job creators in Arkansas’
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge today released the following statement regarding the announcement that the U.S. Department of Labor has rescinded its 2016 Persuader Advice Exemption Rule.
"I led the charge of states against the proposed 2016 Persuader Rule because employers must have access to privileged legal advice, “said Attorney General Rutledge “This decision by the Department of Labor is a win for small businesses and other job creators in Arkansas and across the country. By overturning this burdensome proposal demonstrates the department's return to its mission and how it operated for half a century."
The Persuader Rule forced the disclosure of confidential information, communication and relationships between small businesses and their outside counsel in labor relations matters.
Attorney General Rutledge was vocal in her concern and opposition to this rule. Rutledge led a group of attorneys general in filing amicus briefs on this issue in two federal courts cases, including a case in Arkansas federal district court. Those briefs urged the judge to enjoin the rule. The attorneys general believed the rule would place undue burdens on small businesses, which would be singled out under the new rule. Arkansas also joined 12 other states in sending a letter to the U.S. Office of Management and Budget in 2016 and joined a 10-state coalition suing to invalidate the rule in federal court in Texas.