Last month, the U.S. Department of Labor released a measure officially delaying the implementation of the rule and its related exemptions by 60 days. The applicability date is now June 9. Some argue a longer delay is necessary, while others contend the U.S. Securities and Exchange Commission should step in and craft a better rule.
CUYAHOGA FALLS, Ohio (Legal Newsline) — The U. S. Department of Labor (DOL) announced April 4 that Cathedral Buffet and its owner, televangelist Ernest Angley, have been ordered by a federal judge to pay $388,507 in back wages and damages to 235 “volunteers” who worked at the Cuyahoga Falls, Ohio, restaurant.
The U.S. Department of Labor said earlier this month it would move forward -- under the direction of President Donald Trump -- with its efforts to delay the April 10 applicability date of the new “conflicts of interest” rule. The department said under its proposal the applicability date of the rule and related exemptions would be extended to June 9.
A group of associations have filed an appeal in the U.S. Court of Appeals for the Fifth Circuit and a Kansas-based company has filed an appeal in the U.S. Court of Appeals for the Tenth Circuit over the controversial new rule. 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.
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.