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DOL/ESA RIN: 1215-AB79 Publication ID: Fall 2009 
Title: ●Interpretation of the "Advice" Exemption of Section 203(c) of the Labor-Management Reporting and Disclosure Act 
Abstract: The Department intends to publish notice and comment rulemaking seeking consideration of a revised interpretation of Section 203(c) of the Labor-Management Reporting and Disclosure Act (LMRDA). That statutory provision creates an “advice” exemption from reporting requirements that apply to employers and other persons in connection with persuading employees about the right to organize and bargain collectively. A proposed revised interpretation would narrow the scope of the advice exemption. 
Agency: Department of Labor(DOL)  Priority: Other Significant 
RIN Status: First time published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 29 CFR 405; 29 CFR 406 
Legal Authority: 29 USC 433; 29 USC 438 
Legal Deadline:  None

Statement of Need: The Department of Labor is proposing a regulatory initiative to better implement the public disclosure objectives of the Labor-Management Reporting and Disclosure Act (LMRDA) regarding employer-consultant agreements to persuade employees concerning their rights to organize and bargain collectively. Under LMRDA section 203 an employer must report any agreement or arrangement with a third party consultant to persuade employees as to their collective bargaining rights or to obtain certain information concerning the activities of employees or a labor organization in connection with a labor dispute involving the employer. The consultant, also, is required to report concerning such an agreement or arrangement with an employer. Statutory exceptions to these reporting requirements are set forth in LMRDA section 203(c), which provides, in part, that employers and consultants are not required to file a report by reason of the consultant’s giving or agreeing to give “advice” to the employer. The Department believes that its current policy concerning the scope of the “advice exception” is over-broad and that a narrower construction would better allow for the employer and consultant reporting intended by the LMRDA. Regulatory action is needed to provide workers with information critical to their effective participation in the workplace.

Summary of the Legal Basis: This proposed rulemaking is authorized under U.S.C. §§ 433 and 438 and applies to regulations at 29 CFR Part 405 and 29 CFR Part 406.

Alternatives: Alternatives will be developed and considered in the course of notice and comment rulemaking.

Anticipated Costs and Benefits: Anticipated costs and benefits of this proposed regulatory initiative have not been assessed and will be determined at a later date, as appropriate.

Risks: This action does not affect public health, safety, or the environment.

Timetable:
Action Date FR Cite
NPRM  11/00/2010   
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Information URL: www.olms.dol.gov   Public Comment URL: www.regulations.gov  
RIN Data Printed in the FR: Yes 
Agency Contact:
Andrew R. Davis
Chief, Division of Interpretations and Standards, Office of Labor-Management Standards
FP Building, Room N-5609, 200 Constitution Avenue NW.,
Washington, DC 20210
Phone:202 693-1254
Fax:202 693-1340
Email: davis.andrew@dol.gov

 
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