June 9, 2017 / 12:23 AM / a year ago

U.S. Labor Department to rescind rule on union campaign corporate disclosures

WASHINGTON (Reuters) - The U.S. Labor Department took a major step on Thursday toward rescinding a controversial rule that requires corporate employers and their lawyers to provide more disclosure surrounding how they respond to union campaigns.

The so-called “persuader rule” was one of a handful of major labor rules adopted during former President Barack Obama’s tenure.

It was championed by unions, but was heavily attacked by corporate trade groups.

The rule never took effect. Last year, a federal judge in Texas blocked its implementation after business groups including the National Federation of Independent Business sued because they said the rule was a violation of federal labor law.

The Labor Department had been appealing that decision in the 5th U.S. Circuit Court of Appeals, but after President Donald Trump was elected, the department began asking for multiple extensions to file briefs.

On Thursday, the Labor Department announced it was publishing a notice of proposed rulemaking to rescind the rule. It will be accepting public comments starting June 12.

The NewsGuild-Communications Workers of America represents some of Thomson Reuters Corp’s news staff, and the Labor Department’s actions could have an impact on the company.

Reporting by Sarah N. Lynch; additional reporting by Lisa Lambert; editing by Grant McCool

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