The U.S. Department of Labor (DOL) announced a final rule July 27 requiring federal contractors that use persuaders—consultants or attorneys who inform employees about all the possible effects of unionization as part of union avoidance—to publicly identify themselves as doing so by checking a new box on the LM-10 form. Employers must file the form to disclose certain specified financial dealings, including the use of persuaders.
The rule, which was published in the Federal Register on July 28, could lead to fewer contractors using persuaders if they believe doing so will impact their ability to get a government contract, said Jonathan Keselenko, an attorney with Foley Hoag in Boston. The revision takes effect Aug. 28.
"The final revision explains that the transparency created by the revision would better inform workers in making determinations regarding the exercise of their rights to organize and bargain collectively," the DOL said in a news release. The department makes all reports submitted to it publicly available.
"[W]ith the knowledge that the source of the information received is an anti-union campaign managed by an outsider, workers will be better able to assess the merits of the arguments directed at them and make an informed choice about how to exercise their rights," the DOL added in the rule's supplementary information.
Contractors will likely be concerned that the rule will effectively hinder free speech. "Given the contractor's dependency on the federal...
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