Persuader PRA and Reg Felx

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Overview

Number of Reports_Filers
Total Burden for All Reports
Burden and Cost Per Filer
Reg. Flex Analysis
Revised_final persuader stats

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Sheet 1: Number of Reports_Filers

Number of LM-20 Reports
Total:	Number of NLRB cases	Number of NMB Cases	Average Percentage of Employers utilizing consultants to manage counter-organizing campaigns	Number of Trade Associations Offering Seminars	Number of Law/Consultant Firm Independently-Facilitated Seminars	Total Number of Seminar Reports	Increase over previous ICR	Increase Over NPRM
4194.44	Davis, Andrew - OLMS: See Tab 5. 2658	Aziz, Dyana - OLMS: See NMB annual reports for FY 10-14, Table 1, Cases Received and Closed (used "new cases"). For FY 14 see https://storage.googleapis.com/dakota-dev-content/NMB-2014-Annual-Report.pdf. Figure is average of FY 10-14. 40	Davis, Andrew - OLMS: Average of five most recent academic studies estimating employer use of consultants to orchestrate counter-organizing campaigns: 71%, 75%, 75%, 82%, and 87%. See fn. 13, page 31 of preamble. 0.78	Davis, Andrew - OLMS: Source: U.S. Census Bureau, Statistics of U.S. Businesses: 2012: Number of Firms, Number of Establishments, Employment, and Annual Payroll by Enterprise Employment Size for the United States, All Industries: 2012, released on 1/23/15, NAICS 813910 - Business Asssociations, located at http://www.census.gov/econ/susb/. Saved as a spreadsheet on the Y Drive. Note: we looked at those business associations with 20 or more employees that operated year round. 1045	anddavis: This assumes that the law/consultant firms conducting the trade association seminars will also conduct an equal number (in the aggregate) of independently facilitated seminars. 1045	2090	Davis, Andrew - OLMS: We estimated 387 LM-20 reports in the most recent ICR (for the three-year renewal in 2013, as well as for the 2015 LM-3/4 ICR, which used identical numbers). 3807.44	anddavis: We estimated 2,601 reports in the NPRM. See 76 FR 36198. 1593.44
	Number of non-seminar reports	Ratio of Reports/Filer
	2104.44	Davis, Andrew - OLMS: See tab 5. 5.875
Total of LM-20 Filers		Reports Per Filer
Sub-total for number of law/consultant firms:		Sub-total for number of reports per filer
358.202553191489		11.7096876128566
Total Form LM-10 Reports/Filers Total:	anddavis: This equals the number of LM-20 non-seminar reports, i.e. those filed by law/consultant firms per individual employer agreements. Number of Persuader Agreement Reports	Davis, Andrew - OLMS: See tab 5. Number of 203(a)(1)-(3) Reports	Davis, Andrew - OLMS: We estimated 957 LM-10 reports in the most recent ICR (for the three-year renewal in 2013, as well as for the 2015 LM-3/4 ICR, which used identical numbers). Increase Over Previous ICR	Increase Over NPRM
2777.04	2104.44	672.6	1820.04	-636.96
Non-Filing Entities	Law Firms	Business Associations	Consultant Firms
Total:	Davis, Andrew - OLMS: Derives from Martindale law firm search engine at: http://www.martindale.com/Results.aspx, on 5/18/15. Note: only a subset of the 165,435 law firms listed in Census, NAICS "Office of Lawyers" 541110 category. See: Statistics of U.S. Businesses: 2012: NAICS 541110 - Offices of Lawyers, United States, accessed at: www.census.gov/econ/susb/. 17387	Davis, Andrew - OLMS: See Statistics of U.S. Businesses: 2012: NAICS 813910 - Business Associations, United States, number of firms, accessed at: http://www.census.gov/econ/susb/. Saved as a spreadsheet on Y Drive. 15808	Davis, Andrew - OLMS: See Statistics of U.S. Businesses: 2012: NAICS 541612 - Human Resources Consulting Services, United States, number of firms, accessed at: http://www.census.gov/econ/susb/. Saved as a spreadsheet on Y Drive. 6461
Davis, Andrew - OLMS: First, concerning law firms, while there are 165,435 firms within NAICS Code 541110, not all such firms will need to review the reporting requirements; rather, only those involved in labor and employment law. Indeed, only 17,387 firms in the United States fall into such category. See Martindale law firm search engine at http://www.martindale.com/Results.aspx. Search conducted on 5/18/15 for all United States law firms that focus on labor and employment law. Second, as stated, there are 6,461 consultant firms within NAICS Code 541612. See, supra, Statistics of U.S. Businesses: 2012: NAICS 541612, accessed at: http://www.census.gov/econ/susb/. Saved as a spreadsheet on Y Drive. Third, there are 15,808 business association firms in the United States. See, number of “business associations” firms from the U.S. Census Bureau’s NAICS 813910, which includes trade associations and chambers of commerce. These three figures were summed, and then we subtracted out the number of filing entities. 39297.7974468085

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Sheet 2: Total Burden for All Reports

Reporting and Recordkeeping Burden Hours for Persader Reporting
Form				Number of Reports Filed		Recordkeeping Burden for all reports (in minutes)		Total Recordkeeping Hours for all reports		Total Reporting burden for all reports (in minutes)		Total Reporting Hours for all reports		Total Burden for all reports (in minutes)		Total Burden Hours			Total Recordkeeping Burden Hour Increase Over Previous ICR	Total Reporting Hour Increase Over Previous ICR	Total Burden Hour Increase Over Previous ICR		Total Recordkeeping Burden Increase Over NPRM (in minutes)	Total Recordkeeping Increase Over NPRM (in hours)	Total Reporting Increase Over NPRM (in minutes)	Total Reporting Increase Over NPRM (in hours)	Total Burden Increase Over NPRM (in minutes)	Total Burden Increase Over NPRM (in hours)
Form LM-20 (Revised Forms Submitted)
			anddavis: Note: this number has been rounded. 4194.44		quilloin: the Department estimates that the burden of maintaining and gathering records is 15 minutes 62916.6		1048.61		quilloin: The Department estimates 83 minutes associated with reviewing the instructions and reporting the data. 348138.52		5802.30866666667		411055.12		6850.91866666667			Davis, Andrew - OLMS: All ICR estimates for the LM-10 and LM-20 derive from the recent ICR (for the three-year renewal in 2013, as well as for the 2015 LM-3/4 ICR, which used identical numbers). 951.81	5268.20866666667	6220.01866666667		anddavis: NPRM recordkeeping minute estimate: 39,015 (note: the NPRM at one point, incorrectly, stated that the burden was 30,855 minutes, 76 FR 36201). 23901.6	anddavis: Total recordkeeping burden in NPRM in hours: 650.25. 398.36	anddavis: The total reporting burden in minutes from the NPRM is: 117,045 . 231093.52	anddavis: NPRM Total reporting burden estimate (in hours): 1,950.75 hours. 3851.55866666667	254995.12	4249.91866666667
Form LM-10 (Revised Form Filers/Forms Submitted)			anddavis: Note: this number has been rounded. 2777.04		quilloin: the Department estimates that the burden of maintaining and gathering records is 25 minutes 69426		1157.1		quilloin: The Department estimates 122 minutes associated with reviewing the instructions and reporting the data. 338798.88		5646.648		408224.88		6803.748			755.2	3703.948	4459.148		-15924	-265.9	14468.88	240.648	-1455.12	-24.2520000000004
Total of Form LM-20 Filers
anddavis: The 369 figure has been rounded from the unrounded number listed on the "Number of Reports_Filers" tab. Sub-total for number of law firms/consultants:			anddavis: This is the number of reports filed per the approximately 369 law/consultant firms. 11.7096876128566		175.645314192849		2.92742190321416		971.9040718671		16.198401197785		1147.54938605995		19.1258231009992
		358.202553191489
NOTE: Also, there is currently an error in footnote 103 of page 190 of the preamble: the estimates there are based on trade associations filing, instead of the law/consultant firms filing all the reports, including the seminar reports.

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Sheet 3: Burden and Cost Per Filer

Reporting and Recordkeeping Burden Hours and Costs for Persader Reporting
Form				Number of Reports		Reporting Minutes Per Respondent			Recordkeeping Minutes Per Respondent		Total Burden Minutes Per Respondent		Average Cost Per Respondent*		Total Cost		Increase Over Recent ICR Submission	Total Increase Over Recent ICR Submission		Increase Over NPRM	Total Increase Over NPRM
Form LM-20
Cost Per Form			4194.44		quilloin: The Department estimates 83 minutes associated with reviewing the instructions and reporting the data. 83.00			quilloin: the Department estimates that the burden of maintaining and gathering records is 15 minutes 15.00		98.00		$151.14		$633,932.16		$3.36	$576,743.16		anddavis: $87.59 in NPRM. $63.55	anddavis: $227,821.59 in NPRM. $406,110.57
Cost Per Filer			11.7096876128566											$1,769.76
Form LM-10			2777.04		122			25.00		147.00		$226.70		$629,567.34		$4.59	$417,003.34		anddavis: $175.18 in NPRM. $51.52	anddavis: $598,064.52 in NPRM. $31,502.82
												Total Cost of Rule for Filers:		$1,263,499.50			$993,746.50			$437,613.39
Annual Cost per Non-Filing Entity:	Davis, Andrew - OLMS: Estimated annual one hour of review time multiplied by the hourly cost of an attorney. $92.53																$269,753.00			$825,886.11
Total Annual Cost for Non-Filing Entities:	$3,636,320.73
												Total Cost of Rule:		$4,899,820.23
*Form LM-20 average hourly salary for lawyers, $64.17, is derived from the Occupational Employment and Wages Survey for May 2014, Table 1 on page 12, from the Bureau of Labor Statistics (BLS) at http://www.bls.gov/news.release/pdf/ocwage.pdf. The Department increased these figures by approximately 44.2.0% to account for total compensation to reach the average hourly compensation for attorneys for the purposes of this analysis: $92.53. See Employer Costs for Employee Compensation Summary (03-11-15), from the BLS, at http://www.bls.gov/news.release/ecec.nr0.htm. The Department increased the average hourly wage rate for employees ($21.72 in 2012) by the percentage total of the average hourly compensation figure ($9.60 in 2012) over the average hourly wage.

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Sheet 4: Reg. Flex Analysis

Summary of Form Persuader Regulatory Flexibility Analysis
For Consultants that Meet the SBA Small Entities Standard									Total Cost per Response		Total Cost Per LM-20 Respondent
Davis, Andrew - OLMS: The source for all the NAICS data is the U.S. Census Bureau, Statistics of U.S. Businesses: 2012: Number of Firms, Number of Establishments, Employment, and Annual Payroll by Enterprise Employment Size for the United States, All Industries: 2012, released on 1/23/15, located at http://www.census.gov/econ/susb/. Saved as a spreadsheet on the Y Drive. Year Cost of Form LM-20 Report
	Payroll Cost For Avg Consultant Firm						$1,444,486		$151.14		$1,769.76
	Percent of Average Annual Payroll								0.01046%		0.1225182%
	Payroll Cost For Consulting Firm with 0-4 Employees						$92,126.18		$151.14		$1,769.76
	Percent of Average Annual Payroll								0.16%		1.9210163%
	Non-Filers*
	For Non-Filing Firms with Avg. Consultant Firm								$92.53
	Percent of Average Annual Payroll								0.0064%
	For Non-Filing Firms with Avg. Consultant Firm with 0-4 Emplyees								$92.53
									0.10%
	Year Cost of Form LM-10
	Paryoll Cost for All Employers						$945,530		$226.70
	Percent of Average Annual Payroll								0.0240%		0.000239764423975
	Paryoll Cost for All Employers with 1-4 Employees						$67,126.88		$226.70
	Percent of Average Annual Payroll								0.34%
	For Non-Filing Employers (10 minutes per year)								Davis, Andrew - OLMS: One-sixth of the hourly cost for an attorney ($92.53), since such employer will only take 10 minutes per year (10/60) 15.4220718232044
	Percent of Annual Payroll								0.00326%
	Percent of Payroll for Employers with 1-4 Employees								15.4220718232044
									0.02297%
	Number of Small Entities			Filing Entities	Non-Filing Entities*
	Form LM-20			Davis, Andrew - OLMS: There are 6,461 firms within the “Human Resources Consulting Services” NAICS category, with 6,386 of them (approximately 99% of the total) with less than $15 million in payroll. See, U.S. Census Bureau’s North American Industry Classification System Codes (NAICS) for “Human Resources Consulting Services,” which includes “Labor Relations Consulting Services." See Statistics of U.S. Businesses: 2012: NAICS 541612 - Human resources & executive search consulting services, United States, accessed at: http://www.census.gov/econ/susb/. For the $15 million standard, the Department used the Small Business Administration’s (“SBA”) “small business” standard in average annual receipts for “Human Resources Consulting Services,” NAICS code 541612. See U.S. Small Business Administration’s Table of Small Business Size Standards Matched to the North American Industry Classification System Codes at 32, accessed at: http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf. These size standards are effective as of July 14, 2014. The Department has employed the 99% figure to determine the estimated percentage of labor relations consultants that would qualify as small entities pursuant to the rule, although, for purposes of the RFA section, it assumes all the entities are small entities. 354.620527659574	39297.7974468085
	Form LM-10			Davis, Andrew - OLMS: The SBA considers 99.7% of all employers to constitute small businesses. See https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf. 2768.70888
	Total			3123.32940765957
	* The total cost for these non-filing entities is:			3636320.72831052

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Sheet 5: Revised_final persuader stats

Data (source is hyperlinked)	Totals	2009	2010	2011	2012	2013	2014
Employer Costs for Employee Compensation Summary
Average benefit cost							Aziz, Dyana - OLMS: Numbers were found on http://data.bls.gov/cgi-bin/print.pl/news.release/archives/ecec_03112015.htm Davis, Andrew - OLMS: 9.6
Average hourly wage							Davis, Andrew - OLMS: Numbers were found on http://data.bls.gov/cgi-bin/print.pl/news.release/archives/ecec_03112015.htm 21.72
Fringe benefit percentage (page 189 of final rule)							44.2%
Hourly costs for attorneys							Davis, Andrew - OLMS: Derived from the Occupational Employment and Wages Survey for May 2014, Table 1 on page 12, from the Bureau of Labor Statistics (BLS) at http://www.bls.gov/news.release/pdf/ocwage.pdf. $64.17
Loaded hourly cost (hourly wage plus fringes)							$92.53
Davis, Andrew - OLMS: http://www.dol.gov/olms/regs/compliance/enforcement_data.htm LM-10 reports registered (from OLMS annual report on OLMS web site)			1,000	956	920	934	970
Persuader LM-10 Reports FY 10-14 (from DRDA/Patrick Hyde: see Y Drive)			251	246	236	309	375
Average LM-10 Reports Registered from FY10-14	956
Average Persuader LM-10 Reports from FY10-14	283.4
Average Non-Persuader LM-Reports from FY10-14	672.6
Davis, Andrew - OLMS: http://www.dol.gov/olms/regs/compliance/enforcement_data.htm LM-20 reports registered (from OLMS annual report on OLMS web site	2,726		446	452	617	571	640
LM-20 filers (from OLMS e.LORS data)	464		74	88	99	93	110
Davis, Andrew - OLMS: http://www.dol.gov/olms/regs/compliance/enforcement_data.htm Average Number of LM-20s Registered for FY 10-14:	5.875
545
Davis, Andrew - OLMS: From e.LORS (see Y Drive). Average Number of LM-20 Filers for FY 10-14:
93
Average Number of LM-20 Reports/Filer for FY 10-14:
5.875
Davis, Andrew - OLMS: Number of NLRB petitions filed in certification and decertification (RC, RD, and RM) cases. See 2010 and 2012 NLRB Summary of Operations (which include Fys 09 and 11), as well as Number of Petitions Filed in FY13: http://www.nlrb.gov/news-outreach/graphs-data/petitions-and-elections/number-petitions-filed-fy13. Does not include unit deauthorization, unit amendment and unit clarification (UD, AC and UC) cases. Davis, Andrew - OLMS: http://www.nlrb.gov/reports-guidance/reports/summary-operations NLRB Representation and Decert Elections (2009-13)		2,696	2,969	2,634	2,484	2,507
2009 - 2013 Annual Average NLRB	2,658
Davis, Andrew - OLMS: See 2014 NMB Annual Report, Table 1 (CASES RECEIVED AND CLOSED), and look at the "new" cases line.http://storage.googleapis.com/dakota-dev-content/2014annual-report/index.html Davis, Andrew - OLMS: National Mediation Board representation cases filed			46	40	41	34	39
2010 - 2014 Annual average NMB	40
Average Employer Utilization Rate of Consultants:	71	75	75	82	87
Davis, Andrew - OLMS: Average of five most recent academic studies estimating employer use of consultants to orchestrate counter-organizing campaigns: 71%, 75%, 75%, 82%, and 87%. See fn. 13, page 31 of preamble. 0.78