As you have probably read, the Department of Labor has agreed to exempt from reporting any services and financial matters between labor consultants engaged in indirect “persuader” activities and their employer clients. The reporting requirements are onerous and intrusive on both the consultant and the employer.
Recently, the Department of Labor agreed to exempt from reporting any services and financial matters related to an agreement if that agreement is in place before July 1, 2016. (Click Here for a status report.)
The exemption applies to any services rendered under the agreement and related payments beyond the July 1 reporting implementation date. Thus, this agreement does not have to be consummated by services rendered before July 1, but can instead lie dormant for a period of time.
The DOL confirms this exemption in the body of an email:
“This email is in response to a question on the persuader rule, which you posed to litigation counsel last Friday. Litigation counsel referred to the Office of Labor-Management Standards (OLMS) for response. You asked if an employer and a consultant enter into an agreement before July 1 to provide persuader services on or after July 1, is there a reporting obligation with respect to the arrangement, services and fees? The inquiry assumes the services would not have been considered persuader services prior to the new rule. In response, OLMS confirms that there is no such obligation.
Thank you,
Andrew Davis
Andrew R. Davis
Chief, Division of Interpretations and Standards
Office of Labor-Management Standards
U.S. Department of Labor
200 Constitution Avenue, N.W.
Suite N-5609
(202) 693-0123”
This is a very important opportunity for every employer.
For our standard agreement for those who have not already protected their privacy, click here. Feel free to execute and return to me before June 30, 2016.
Best regards,
William R. Adams, Ph.D.
President & CEO
Adams, Nash, Haskell & Sheridan
1-800-237-3942
wadams@anh.wpengine.com