THE PERSUADER RULE: THE ADMINISTRATION’S LATEST ATTACK ON EMPLOYER FREE SPEECH AND WORKER FREE CHOICE HEARING BEFORE THE SUBCOMMITTEE ON HEALTH, EMPLOYMENT, LABOR, AND PENSIONS COMMITTEE ON EDUCATION AND THE WORKFORCE U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION HEARING HELD IN WASHINGTON, DC, APRIL 27, 2016 Serial No. 114–47 Printed for the use of the Committee on Education and the Workforce ( Available via the World Wide Web: www.gpo.gov/fdsys/browse/committee.action?chamber=house&committee=education or Committee address: http://edworkforce.house.gov U.S. GOVERNMENT PUBLISHING OFFICE 99–869 PDF WASHINGTON : 2016 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Mar 15 2010 09:25 Jan 06, 2017 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\E&W JACKETS\99869.TXT CANDRA CEWDOCROOM with DISTILLER COMMITTEE ON EDUCATION AND THE WORKFORCE JOHN KLINE, Minnesota, Chairman Joe Wilson, South Carolina Robert C. ‘‘Bobby’’ Scott, Virginia Virginia Foxx, North Carolina Ranking Member Duncan Hunter, California Rube´n Hinojosa, Texas David P. Roe, Tennessee Susan A. Davis, California Glenn Thompson, Pennsylvania Rau´ l M. Grijalva, Arizona Tim Walberg, Michigan Joe Courtney, Connecticut Matt Salmon, Arizona Marcia L. Fudge, Ohio Brett Guthrie, Kentucky Jared Polis, Colorado Todd Rokita, Indiana Gregorio Kilili Camacho Sablan, Lou Barletta, Pennsylvania Northern Mariana Islands Joseph J. Heck, Nevada Frederica S. Wilson, Florida Luke Messer, Indiana Suzanne Bonamici, Oregon Bradley Byrne, Alabama Mark Pocan, Wisconsin David Brat, Virginia Mark Takano, California Buddy Carter, Georgia Hakeem S. Jeffries, New York Michael D. Bishop, Michigan Katherine M. Clark, Massachusetts Glenn Grothman, Wisconsin Alma S. Adams, North Carolina Steve Russell, Oklahoma Mark DeSaulnier, California Carlos Curbelo, Florida Elise Stefanik, New York Rick Allen, Georgia Juliane Sullivan, Staff Director Denise Forte, Minority Staff Director SUBCOMMITTEE ON HEALTH, EMPLOYMENT, LABOR, AND PENSIONS DAVID P. ROE, Tennessee, Chairman Joe Wilson, South Carolina Jared Polis, Colorado, Virginia Foxx, North Carolina Ranking Member Tim Walberg, Michigan Joe Courtney, Connecticut Matt Salmon, Arizona Mark Pocan, Wisconsin Brett Guthrie, Kentucky Rube´n Hinojosa, Texas Lou Barletta, Pennsylvania Gregorio Kilili Camacho Sablan, Joseph J. Heck, Nevada Northern Mariana Islands Luke Messer, Indiana Frederica S. Wilson, Florida Bradley Byrne, Alabama Suzanne Bonamici, Oregon Buddy Carter, Georgia Mark Takano, California Glenn Grothman, Wisconsin Hakeem S. Jeffries, New York Rick Allen, Georgia (II) VerDate Mar 15 2010 09:25 Jan 06, 2017 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\E&W JACKETS\99869.TXT CANDRA CEWDOCROOM with DISTILLER CONTENTS Page Hearing held on April 27, 2016 .............................................................................. 1 Statement of Members: Polis, Hon. Jared, Ranking Member, Subcommittee on Health, Employ- ment, Labor, and Pensions ........................................................................... 4 Prepared statement of ............................................................................... 5 Roe, Hon. David P., Chairman, Subcommittee on Health, Employment, Labor, and Pensions ..................................................................................... 1 Prepared statement of ............................................................................... 3 Statement of Witnesses: Baumgarten, Mr. Joseph, Partner, Proskauer Rose, LLP, New York, NY .. 39 Prepared statement of ............................................................................... 42 Sellers, Ms. Sharon, President, SLS Consulting, LLC, Santee, SC ............. 56 Prepared statement of ............................................................................... 58 Newman, Mr. Jonathan, Partner, Sherman, Dunn, Cohen, Leifer & Yellig, P.C., Washington, DC ....................................................................... 66 Prepared statement of ............................................................................... 68 Robinson III, Mr. Wm. T., Member, Frost Brown Todd LLC, Florence, KY .................................................................................................................. 91 Prepared statement of ............................................................................... 93 Additional Submissions: Byrne, Hon. Bradley, a Representative in Congress from the State of Alabama: Letter dated April 25, 2016, from National Association of Home Builders (NAHB) .................................................................................... 132 Letter dated April 26, 2016, from National Federation of Independent Business (NFIB) ..................................................................................... 130 Letter dated April 26, 2016, from Retail Industry Leaders Association (RILA) ..................................................................................................... 131 Letter dated April 26, 2016, from Chamber of Commerce of the United States of America ...................................................................... 152 Jeffries, Hon. Hakeem S., a Representative in Congress from the State of New York: Poverty Rankings by State (2009) ........................................................... 125 State Right to Work Timeline .................................................................. 127 Unionization By State - Direct Union Membership ............................... 154 Unionization By State - People Represented by Unions ........................ 156 Mr. Newman: Appendix .................................................................................................... 159 Mr. Polis: Letter from ABA Model Rules of Professional Conduct ......................... 143 Letter from Attorneys ............................................................................... 145 Dr. Roe: Prepared statement of Ms. Paulette Brown, President, American Bar Association .............................................................................................. 7 Letter dated April 22, 2015, from Ms. Leslie Rultledge, Arkansas Attorney General, State of Arkansas ................................................... 20 Letter dated April 26, 2015, from Ms. Kristen Swearingen, Vice President of Legislative and Political Affairs, American Builders and Contractors, Inc. (ABC) .................................................................. 38 (III) VerDate Mar 15 2010 09:25 Jan 06, 2017 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 C:\E&W JACKETS\99869.TXT CANDRA CEWDOCROOM with DISTILLER VerDate Mar 15 2010 09:25 Jan 06, 2017 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 C:\E&W JACKETS\99869.TXT CANDRA CEWDOCROOM with DISTILLER THE PERSUADER RULE: THE ADMINISTRATION’S LATEST ATTACK ON EMPLOYER FREE SPEECH AND WORKER FREE CHOICE Wednesday, April 27, 2016 U.S. House of Representatives Committee on Education and the Workforce Subcommittee on Health, Employment, Labor, and Pensions Washington, D.C. The Subcommittee met, pursuant to call, at 10:00 a.m., in room 2175, Rayburn House Office Building. Hon. David P. Roe [chairman of the subcommittee] presiding. Present: Representatives Roe, Foxx, Walberg, Guthrie, Byrne, Carter, Grothman, Allen, Polis, Pocan, Wilson, Bonamici, Takano, Jeffries, and Scott. Staff Present: Bethany Aronhalt, Press Secretary; Andrew Banducci, Workforce Policy Counsel; Janelle Belland, Coalitions and Members Services Coordinator; Ed Gilroy, Director of Work- force Policy; Jessica Goodman, Legislative Assistant; Callie Har- man, Legislative Assistant; Christie Herman, Professional Staff Member; Tyler Hernandez, Deputy Communications Director; Nancy Locke, Chief Clerk; John Martin, Professional Staff Member; Geoffrey MacLeay, Professional Staff Member; Dominique McKay, Deputy Press Secretary; Brian Newell, Communications Director; Krisann Pearce, General Counsel; Alissa Strawcutter, Deputy Clerk; Olivia Voslow, Staff Assistant; Joseph Wheeler, Professional Staff Member; Tylease Alli, Minority Clerk/Intern and Fellow Coor- dinator; Pierce Blue, Minority Labor Detailee; Christine Godinez, Minority Staff Assistant; Carolyn Hughes, Minority Senior Labor Policy Advisor; Brian Kennedy, Minority General Counsel; Richard Miller, Minority Senior Labor Policy Advisor; and Marni von Wilpert, Minority Labor Detailee. Chairman ROE. A quorum being present, the Subcommittee on Health, Employment, Labor, and Pensions will come to order. Good morning, and I want to thank our witnesses for joining us today. We are here today to examine a new rule finalized by the De- partment of Labor and its impact on American workers and em- ployees. I would like to start by saying now we are in the seventh year of the economic recovery, the slowest recovery in our Nation’s his- (1) VerDate Mar 15 2010 09:25 Jan 06, 2017 Jkt 000000 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 C:\E&W JACKETS\99869.TXT CANDRA CEWDOCROOM with DISTILLER 2 tory. Although we have made progress over the years, we have a long way to go for the economy to reach its full potential. Millions of Americans are still stuck in part-time jobs and what they really want and need is full-time work. Too many working families are struggling with stagnant wages, and the workforce participation rate is at its