Department of Labor Proposes Changes to Persuader Reporting Requirements

The Department of Labor has proposed changes to, and seeks public comment regarding its interpretation of, the persuader reporting requirements set forth in Section 203 of the Labor-Management Reporting and Disclosure Act (LMRDA). Section 203 currently requires employers to disclose arrangements with any third-party to directly or indirectly persuade their employees as to their collective bargaining rights,or to obtain information about the activities of a labor organization involved in a labor dispute with the employer.

There has always been an exception to this reporting requirement for any "advice" given to the employer. In the past, this exception has excluded arrangements where the third-party does not have any direct contact with employees, such as drafting or reviewing documents, letters, or speeches presented to employees during an organizing drive or in anticipation of an NLRB election. These activities were deemed "advice," therefore, there was no need to disclose.

Should the Department of Labor's proposal become effective, the term "advice" will be limited to "oral or written recommendations regarding a decision or course of conduct," outside of representing the employer in a court, administrative, or arbitration proceeding. The term "persuader activity" would include training or directing supervisors and other management representatives to engage in persuader activity; establishing antiunion committees composed of employees; planning employee meetings; deciding which employees to target for persuader activity or discipline; creating employer policies and practices designed to prevent organizing; and determining the timing and sequencing of persuader tactics and strategies. In these instances, the Department of Labor believes the third-party has gone beyond mere recommendation and has engaged in actions, conduct, or communications with the object to persuade employees, either directly or indirectly, about the employees' protected, concerted activity. As such, the duty to report will be triggered.

The full text of the proposed interpretation can be found in the Federal Register. Electronic comments may be submitted here. Comments must be received by August 22, 2011.

Each case a business or individual may face is unique and may require legal advice. If you would like additional information regarding the content of this article, please contact a member of our Labor and Employment Department.

Department of Homeland Security Embarks on a Major Compliance Effort

The Department of Homeland Security (DHS) is embarking on a major compliance effort to audit I-9 and related records of thousands of employers.Employers throughout Arizona and other southwestern states are receiving notices that they must produce I-9 and related information, such as unemployment insurance tax returns, payroll registers and 1099 forms for contract laborers. Employers are required to provide the requested information within three days of receiving the notice.

The DHS is entitled under the law to request that you relinquish your original Form I-9s along with copies of the other requested records. If you receive such a notice, the first thing you should do is seek legal counsel. Next, contact the local DHS office in your area to verify the identity of the auditor making the request to ensure that he or she is, in fact, a DHS employee. Once this is done, you should be prepared to comply with the auditor's request for information. By law, you are required to maintain, and the auditor will ask to see, a Form I-9 for all current employees, as well as those who have left employment within the prior 12 months. It is advised that you retain copies of all records you provide to the auditor along with a signed, itemized receipt. In addition to the I-9 records, the DHS will request copies of your company's key ownership information, business licenses and organizational documents.Remember, when the auditor arrives at your place of business, be sure to carefully review credentials to confirm he or she is the authorized auditor before you produce any information.

Below is the contact information for the Arizona Department of Homeland Security:
1700 W. Washington St.
Phoenix, AZ 85007
602-542-7030
http://www.azdohs.gov/

Each case a business or individual may face is unique and may require legal advice. If you would like additional information regarding the content of this article, please contact a member of our Labor and Employment Department.

Jennings Strouss Client Recognized in Top 10 Civil Verdicts for 2010

Arizona Attorney magazine included Mesa Bank v. Thomas Alexander, Sandra Stevens, Bobbie Jo Johnson, American Mortgage Funding, Inc, Capital Title Agency, and American Mortgage Specialists, Inc. as one of the Top 10 Civil Verdicts of 2010. Jennings, Strouss & Salmon represented, and obtained the second highest verdict for a plaintiff in 2010 for, Mesa Bank (now Sunrise Bank of Arizona) against six defendants for a total of approximately $71.6 million in compensatory and punitive damages in connection with a fraudulent scheme to obtain real estate loans.

Jennings Strouss Client Recognized in Top 10 Civil Verdicts for 2010

Arizona Attorney magazine included Albert Pellegrini v. L.A. Fitness sports Club, L.L.C. and Brunswick Corporation as one of "Arizona's significant Defense verdicts in 2010." Jennings, Strouss & Salmon represented, and obtained a favorable decision for, Brunswick Corporation.