Texas Wins Final Judgment in “Persuader (Overtime) Rule” Case

AUSTIN – Attorney General Ken Paxton today announced that Texas, along with Arkansas and eight other states, won a final judgment in National Federation of Independent Business, et al. v. Perez.

The case concerns the U.S. Department of Labor’s (DOL) “persuader advice exemption rule,” which would have required attorneys to reveal to the DOL certain confidential information protected by attorney-client privilege.

The new rule would have also made it more difficult and expensive for small business owners to obtain legal advice. The court declared the rule unlawful and permanently enjoined the DOL from enforcing it.

Attorney General Paxton, along with Arkansas Attorney General Leslie Rutledge, led the 10-state coalition fight to stop the rules from taking effect.

“The Department of Labor took this administration’s scorn for the rule of law to new heights when it implemented its so-called persuader rule,” Attorney General Paxton said. “Our adversarial legal system hinges on the right of Americans to access good counsel; that right, however, only thrives when Americans are able to seek legal advice without the fear of harassment and intimidation. The federal government may elect to appeal the final judgment, but I am confident the administration’s arguments will break under the weight of its own error.”

Joining Texas and Arkansas in the case are Alabama, Indiana, Michigan, Oklahoma, South Carolina, Utah, West Virginia, and Wisconsin.

Other plaintiffs in the case include the National Federation of Independent Business, Texas Association of Business, Lubbock Chamber of Commerce, National Association of Home Builders, and Texas Association of Builders.

To view the final judgment, click here: https://www.texasattorneygeneral.gov/files/epress/145_Final_Judgment.pdf?cachebuster:42