Alabama Opposes Labor Rule That’s Harming Small Businesses

Attorney General Luther Strange announced Alabama has joined nine other states in filing an amicus brief in Arkansas federal district court urging the court to grant a preliminary injunction of the U.S. Department of Labor’s new Persuader Advice Exemption Rule, which forces disclosure of confidential communications between small businesses and their outside counsel in labor relations matters.

“Small businesses make up over 90 percent of all businesses both in Alabama and across America,” Attorney General Strange said.  “These local job providers can least afford further unwarranted federal mandates that will erode their ability to compete.  The new federal labor rule would reverse long-standing protections for confidential attorney-client communications and would place undue burdens on small business.”

Alabama, Arizona, Arkansas, Michigan, Nevada, Oklahoma, South Carolina, Texas, Utah and West Virginia are requesting that the federal court grant the plaintiffs’ motion in ABC v. Perez for a preliminary injunction of the department’s new rule until the conclusion of the litigation: “Given the department’s own longstanding rule exempting attorney advice from disclosure, and the likelihood that the department’s new, radical adventure into areas of attorney-client confidence is in conflict with the governing Act, a preliminary injunction to preserve the status quo pending litigation is well justified, and is the best way to protect the public.”

In February, Attorney General Strange led a group of 13 attorneys general in writing the U.S. Office of Management and Budget in opposition to the Obama administration’s proposed “Persuader” labor rule.  The rule was adopted on March 23, 2016.