Interpretation of the ``Advice'' Exemption in Section 203(c) of the
Labor-Management Reporting and Disclosure Act; Notice [Notices] [04/11/2001]
Interpretation of the ``Advice'' Exemption in Section 203(c) of the
Labor-Management Reporting and Disclosure Act; Notice [04/11/2001]
Volume 66, Number 70, Page 18863-18864
[[Page 18863]]
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Part III
Department of Labor
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Office of Labor Management Standards
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Interpretation of the ``Advice'' Exemption in Section 203(c) of the
Labor-Management Reporting and Disclosure Act; Notice
[[Page 18864]]
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DEPARTMENT OF LABOR
Office of Labor-Management Standards
Interpretation of the ``Advice'' Exemption in Section 203(c) of
the Labor-Management Reporting and Disclosure Act
AGENCY: Office of Labor-Management Standards, Employment Standards
Administration, Labor.
ACTION: Notice of rescission of revised statutory interpretation.
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SUMMARY: The Department is rescinding the revision of an interpretation
of the ``advice'' exemption in section 203(c) of the Labor-Management
Reporting and Disclosure Act of 1959, as amended (LMRDA) published in
the Federal Register on January 11, 2001. This action is being taken
because, after review of the revised interpretation, the Department has
concluded that the prior longstanding interpretation is the more
appropriate one. Accordingly, as a matter of enforcement policy, the
Department will not apply the revised interpretation.
EFFECTIVE DATE: The Notice published on January 11, 2001 at 66 FR 2782
is rescinded as of April 11, 2001.
FOR FURTHER INFORMATION CONTACT: Kay H. Oshel, Chief, Division of
Interpretations and Standards, Office of Labor-Management Standards,
Employment Standards Administration, U.S. Department of Labor, 200
Constitution Avenue, NW., Room N-5605, Washington, DC 20210. (202) 693-
1233 (this is not a toll-free number).
SUPPLEMENTARY INFORMATION: The Secretary of Labor administers the
Labor-Management Reporting and Disclosure Act of 1959, as amended
(LMRDA), Public Law 86-257, 73 Stat. 519-546, codified at 29 U.S.C.
401-531. Sections 203(a) and (b) of the LMRDA, 29 U.S.C. Sec. 433(a)
and (b), require employers and other persons to file certain reports
with the Department of Labor in connection with persuading employees
about the right to organize and bargain collectively. LMRDA section
203(c) creates an exemption from these reporting requirements if the
consultant's activity is limited to ``giving or agreeing to give
advice'' to an employer.
Since 1962, the Department has construed ``advice'' to include not
only a consultant's review of persuasive material prepared by the
employer and comments thereon, but also the consultant's preparation of
material for the employer, so long as the employer is free to accept or
reject the material. On January 11, 2001, the Department published a
notice in the Federal Register (66 FR 2782) revising its interpretation
of section 203(c) of the LMRDA. Under the revised interpretation,
section 203(c) would exempt employers and labor relations consultants
from the reporting otherwise required by sections 203(a) and (b) if the
consultant reviews and revises persuasive material prepared by the
employer but not if the consultant prepares or provides the material.
On February 9, the Department published a notice in the Federal
Register (66 FR 9724) delaying the implementation date of the revised
interpretation for 60 days, from February 10, 2001 to April 11, 2001,
in order to enable Department officials to review and consider the
matter. That notice was issued in accordance with the memorandum of
January 20, 2001 from the Assistant to the President and Chief of
Staff, entitled ``Regulatory Review Plan,'' published in the Federal
Register on January 24, 2001 (66 FR 7702).
The notice of January 11, 2001, set forth two reasons for revising
the longstanding interpretation of LMRDA section 203(c): (1) ``the
textual basis for the prior interpretation is dubious'' in that it ``is
in tension with the ordinary meaning of the term `advice' ''; and (2)
the prior interpretation ``has harmed the effectiveness of the LMRDA in
requiring disclosure of persuader activities.''
Upon review and reconsideration of the revised interpretation, the
Department has determined that the revision is not warranted or
justified. The evidence and argument presented in the notice of January
11, 2001 is insufficient to support the conclusion that the
interpretation of the term ``advice'' taken since 1962 is inconsistent
with the ordinary understanding of that term or that it is inconsistent
with the intent of the LMRDA reporting requirements. See also
International Union, UAW v. Dole, 869 F.2d 616, 618-620 (D.C. Cir.
1989) (interpretation taken since 1962 is a permissible interpretation
of the statute). Moreover, the revision of the Department's
longstanding interpretation was made without the benefit of input from
all the parties most directly affected by the change in the reporting
requirements.
Consequently, the revised interpretation of LMRDA section 203(c)
issued on January 11, 2001 is rescinded and the former interpretation
is reinstated.
Signed at Washington, DC this 6th day of April, 2001.
Joe N. Kennedy,
Acting Assistant Secretary of Labor for Employment Standards.
[FR Doc. 01-9036 Filed 4-10-01; 8:45 am]
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