The legislation, introduced by U.S. Rep. Joe Wilson of South Carolina Friday, would provide for a two-year delay of the U.S. Department of Labor’s fiduciary rule’s effective date. The rule mandates financial professionals who service individual retirement accounts, including IRAs and 401(k) plans, to serve the “best interest” of the savers and disclose conflicts of interest.
Houston law firm Ogletree Deakins Nash Smoak & Steward PC, Lubbock firm Bustos Law Firm PC and El Paso firm Kemp Smith LLP are hoping to recover a maximum of $479,834.50 in fees, but said in their motion they also would accept $323,442.63 or $222,645, depending on the rate used by the Texas federal court.
Texas federal judge issues nationwide permanent injunction against U.S. Department of Labor’s ‘persuader rule’
The persuader rule, or Persuader Advice Exemption Rule, was meant to effectively eliminate the “advice exemption” under the Labor-Management Reporting Disclosure Act, or LMRDA. Basically, LMRDA requires employers to report each time they engage a consultant to persuade employees on how to use their collective bargaining rights.
CARSON CITY, Nev. (Legal Newsline) – Nevada Attorney General Adam Paul Laxalt announced this week the filing of a motion for preliminary injunction and request for expedited consideration on behalf of 21 coalition states in Nevada’s federal lawsuit against the U.S. Department of Labor’s new overtime rule.
Minneapolis-based Thrivent Financial for Lutherans argues the new rule, which, among other things, redefines the term fiduciaries, would subject it to penalties under federal law and would force it to agree contractually with its customers that they could participate in class actions against the organization.
In its brief, the Washington Legal Foundation contends the U.S. District Court for the District of Minnesota erred by holding at the preliminary injunction stage that the plaintiffs’ facial challenge to the Persuader Advice Exemption Rule can succeed only by showing that the rule would be invalid in all of its applications.
WLF to Arkansas federal court: U.S. Department of Labor’s ‘persuader rule’ is too ‘aggressive,’ should be struck down
The Washington Legal Foundation, a D.C.-based public interest law firm, recently filed an amicus brief in Associated Builders and Contractors of Arkansas v. Perez. The foundation, citing a recent Texas federal court ruling, argues the new Persuader Advice Exemption Rule violates First Amendment protections.
U.S. DOJ defends Labor Department’s fiduciary rule in court filing, says injunction would be ‘detrimental’
Last month, the National Association for Fixed Annuities, or NAFA, filed a lawsuit in the U.S. District Court for the District of Columbia. The DOJ, on behalf of the DOL and Perez, filed its own proposed order with the D.C. federal court last week, arguing the rule is necessary to “safeguard the retirement savings of millions of American consumers.”
The new Persuader Advice Exemption Rule requires that employers and the consultants they hire file reports not only for direct persuader activities -- i.e. consultants talking to workers -- but also for indirect persuader activities -- consultants scripting what managers and supervisors say to workers.