Office of Labor-Management Standards (OLMS)

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Form LM-2 - Frequently Asked Questions

Electronic Filing Questions

Additions are made regularly to the Frequently Asked Questions, so please check these pages often for updates. If you have a question that is not addressed here, you may email your question to olms-public@dol.gov.

• How must the Form LM-2 be filed?
• What is a temporary hardship exemption?
• What is the required due date for Forms LM-2, LM-3, and LM-4?
• What if it is absolutely impossible for my union to file the revised Form LM-2 electronically?
• If an LM-3 filer gets a windfall receipt, such as a settlement of a claim, that puts it over $250,000 total annual receipts for one year, is this a basis for a hardship exemption?
• When filing for a hardship exemption, what is considered undue burden and expense?
• What is the procedure for requesting a hardship exemption?
• Does the Department of Labor have a hardship exemption application form?
• Where should the application be filed?
• Can the OLMS field offices approve a hardship exemption?
• What if I have questions about the application process?
• What must the labor organization do if the application is denied?
• What must the labor organization do if the application is granted?
• How will information about the process and software be communicated to the unions?
• How will the DOL prevent unauthorized users from submitting data for our union?
• New! How long does it take to get the electronic signature?
• Does the electronic signature have to be obtained in advance of filing the LM-2 form?
• What if a local is in trusteeship? How does a trustee in Washington, D.C. get access to sign the LM-2 with his electronic signature?
• How will the DOL ensure the security of my data when it is being transmitted and on the storage end?
• How will the DOL ensure the integrity of my data? In other words, how will I know that my data was received exactly as it was sent?
• Can the union file a "test" report before the deadline to ensure that electronic filing works?
• How do you know the form transmitted properly? How quickly will you get a confirmation?
• If we need to make changes to our filing after it has been sent, how will we do that?
• Can you alter the data on the form after import?
• Why are e-signatures allowed/required when signature facsimile stamps are not permitted?

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Q. How must the Form LM-2 be filed?

A. The Form LM-2 must be submitted electronically. A Form LM-2 filer will be able to file a report in paper format only if it asserts a temporary hardship exemption or applies for and is granted a continuing hardship exemption of one year or less. Form LM-3 and LM-4 filers are encouraged to prepare and submit their reports electronically but it is not required.

Q. What is a temporary hardship exemption?

A. If a labor organization experiences unanticipated difficulties that prevent the timely preparation and submission of an electronic filing, the reporting labor organization may assert a temporary hardship exemption and file Form LM-2 in paper format by the required due date. The paper form will be provided by OLMS. The labor organization must submit an electronic format copy of the filed paper format report within ten business days after the required due date.

Q. What is the required due date for Forms LM-2, LM-3, and LM-4?

A. The report must be filed within 90 days after the end of the labor organization's fiscal year (12-month reporting period).

Q. What if it is absolutely impossible for my union to file the Form LM-2 electronically?

A. You may apply for a continuing hardship exemption of one year or less.

Q. If an LM-3 filer gets a windfall receipt, such as a settlement of a claim, that puts it over $250,000 total annual receipts for one year, is this a basis for a hardship exemption?

A. If the labor organization did not have a computer, for example, it could file for a hardship exemption. The exemption only excuses the labor organization from filing electronically, however. It would still have to file Form LM-2.

Q. When filing for a hardship exemption, what is considered undue burden and expense?

A. As stated in the instructions for Form LM-2 and new Form T-1, the condition for a temporary hardship exemption is whether the labor organization "experiences technical difficulties that prevent the timely preparation and submission of an electronic filing . . ." and the condition for a continuing hardship exemption is whether the form cannot be filed electronically "without undue burden or expense." The union submitting an application for a continuing hardship exemption should document the burden or expense that would be necessary for it to file electronically (for example, detail any hardship imposed by the need to purchase a computer or obtain an Internet connection). Hardship exemptions will be evaluated on a case-by-case basis.

Q. What is the procedure for requesting a hardship exemption?

A. A labor organization may apply in writing for a continuing hardship exemption if Form LM-2 cannot be filed electronically without undue burden or expense. The written application must be received at least thirty days prior to the required due date of the report.

Q. Does the Department of Labor have a hardship exemption application form?

A. No. The written application must include, but not be limited to, the following: (1) the justification for the requested time period of the exemption, (2) the burden and expense that the union would incur if it was required to make an electronic submission, and (3) the reasons for not submitting the report electronically.

Q. Where should the application be filed?

A. Send the application to the U.S. Department of Labor, Employment Standards Administration, Office of Labor-Management Standards, 200 Constitution Avenue, NW, Room N-5609, Washington, DC 20210-0001

Q. Can the OLMS field offices approve a hardship exemption?

A. No.

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Q. What if I have questions about the application process?

A. Direct questions regarding the application process to the OLMS Division of Interpretations and Standards, which can be reached at the above address, by e-mail at olms-public@dol.gov, by phone at 202-693-0123, or by fax at 202-693-1340.

Q. What must the labor organization do if the application is denied?

A. If the continuing hardship exemption is denied, Form LM-2 must be filed electronically by the required due date.

Q. What must the labor organization do if the application is granted?

A. If the continuing hardship exemption is granted, Form LM-2 must be filed by the required due date on a paper form. The paper form will be provided by OLMS.

Q. How will information about the process and software be communicated to the unions?

A. Information will be available on the OLMS Web site at www.olms.dol.gov and through the OLMS e-mail messaging service, which you can subscribe to on the Web site.

Q. How will the DOL prevent unauthorized users from submitting data for our union?

A. A digital certificate is used to sign a transaction creating what is known as a digital signature. Filers must apply for a digital certificate from an approved Certifying Authority. The Certifying Authority verifies identity prior to issuing the digital certificate. The user loads the digital certificate on his/her computer and uses a "private key" to create a digital signature. The private key that is used belongs solely to the certificate holder; no one else can have or hold this key. The certificate holder (union officer) is responsible for keeping his/her key confidential. Most people store their private key using the password protection of their Web browser.

Q. How long does it take to get the electronic signature?

A. You can purchase an ACES (Access Certificates for Electronic Services) digital certificate through IdenTrust at: http://www.identrust.com/dol/index.html Once the IdenTrust Certificate Authority has received your online application it may take up to 5-7 working days to obtain the ACES digital certificate.

Q. Does the electronic signature have to be obtained in advance of filing the LM-2 form?

A. Yes.

Q. What if a local is in trusteeship? How does a trustee in Washington, D.C. get access to sign the LM-2 with his electronic signature?

A. The form can be e-mailed or sent via removable media for signature.

Q. How will the DOL ensure the security of my data when it is being transmitted and on the storage end?

A. The data will be transmitted electronically over a secure channel, encrypted and will use an SSL certificate.

Q. How will the DOL ensure the integrity of my data? In other words, how will I know that my data was received exactly as it was sent?

A. When the report is signed using a digital signature, key report data is stored in the signature, which is encrypted and locked so that it cannot be altered. Once the report is received at OLMS, the key report data is compared to the copy stored in the signature to verify that the data has not been altered.

Q. Can the union file a "test" report before the deadline to ensure that electronic filing works?

A. OLMS will conduct extensive testing of the software, which will include submission of test reports. There will also be a feature built into the form that allows the user to test their import files before actually importing them into the form. Validation routines will be run prior to submission to inform the user of any errors. There will be technical help available for the software in the form of a help desk.

Q. How do you know the form transmitted properly? How quickly will you get a confirmation?

A. The software will run a number of validation checks when information is entered and when the form is submitted, similar to those in use with the current software. Also, the reporting labor organization will be sent confirmation that the report was received.

Q. If we need to make changes to our filing after it has been sent, how will we do that?

A. An amended report should be submitted electronically and Item 3(a) should be selected to indicate that it is an amended submission.

Q. Can you alter the data on the form after import?

A. Yes, data can be edited after importing it into the form.

Q. Why are e-signatures allowed/required when signature facsimile stamps are not permitted?

A. An electronic signature has the legal status of an original signature. A signature facsimile stamp is not an original signature.

Last Updated: 07/11/08