DOL's Final Persuader Rule Permanently Blocked by Texas Court

Earlier this year, Reinhart reported on a nationwide injunction issued by the United States District Court for the Northern District of Texas, which temporarily blocked the Department of Labor's ("DOL") Final Persuader Rule ("Final Rule") discussed in "The Final Persuader Rule: What Employers Need to Know."

On November 16, 2016, the same court made its preliminary injunction permanent, placing future enforcement of the Final Rule in severe jeopardy.  Although the Fifth Circuit Court of Appeals may hear the Obama administration's appeal from the court's preliminary injunction order in the next few months, the Trump administration will likely have an opportunity to withdraw the appeal, or eliminate the Final Rule altogether, after Inauguration Day.

Reinhart is monitoring this matter closely and will publish future e-Alerts should anything develop.  Please feel free to contact Chris Banaszak or Rob Driscoll for further guidance or analysis.