Federal Court Permanently Enjoins the Persuader Rule

On November 16, 2016, the U.S. District Court for the Northern District of Texas (Lubbock Division) converted its injunction preventing implementation of the U.S. Department of Labor’s revised persuader rule on a national basis from preliminary to permanent. According to Judge Sam R. Cummings’s order, the court converted the preliminary injunction to a permanent one for the same reasons “stated in the Court’s Preliminary Injunction Order entered June 27, 2016” in National Federation of Independent Business et al. v. Perez, et al. Judge Cummings found the DOL’s revised persuader rule to be “not merely fuzzy around the edges.

Lubbock Judge Grants Motion to Halt Persuader Rule

On June 27, 2016, in National Federation of Independent Business et al. v. Perez, et al., the U.S. District Court for the Northern District of Texas (Lubbock Division) granted Plaintiffs’ Motion for a Preliminary Injunction, thereby enjoining the U.S. Department of Labor (DOL) from implementing and enforcing its revised persuader rule on a national basis. The Court found that Plaintiffs’ challenge to the new rule, which was set to become effective July 1, 2016, has a substantial likelihood of success on the merits and that Plaintiffs have shown that they would be irreparably harmed if the rule was not enjoined.