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ESA News Release: [08/25/2005]
Contact Name: Pamela Groover or Dolline Hatchett
Phone Number: (202) 693-4676 or x4651
Release Number: 05-1618-NAT

Department of Labor Requests Information from the Public On Fiduciary Responsibility Guidelines

WASHINGTON—The Office of Labor-Management Standards (OLMS) will publish a Request for Information in Monday's Federal Register to solicit public comments on whether the Labor Department should issue guidelines on section 501(a) of the Labor-Management Reporting and Disclosure Act (LMRDA). Section 501 imposes a fiduciary obligation on officers, agents, shop stewards and other representatives of labor organizations.

To date, the department has not, as a matter of policy, addressed what constitutes a breach of fiduciary duty under section 501 because legal remedies for such breaches must be initiated by individual union members rather than by the department.

“In this era of increased financial integrity, it is important that there be accountability and transparency so that union members have the most accurate and helpful information available to them,” said Victoria A. Lipnic, assistant secretary for employment standards.

The department will also seek comments on the nature and scope of fiduciary obligations under Section 501, which states in general terms that officers, agents, shop stewards, and other representatives of a labor organization occupy “positions of trust” within their labor organizations and must act in the best interests of the union. While the LMRDA does not describe in complete detail the nature and scope of the fiduciary duties of union officials, the legislative history indicates that a broad interpretation of duty should be applied.

Comments must be received on or before Oct. 28 and should be identified by RIN 1215-AB52. Comments can be e-mailed to OLMS-REG-1215-AB52@dol.gov; faxed to (202) 693-1340, or mailed to Kay H. Oshel, Director of the Office of Policy, Reports and Disclosure, Office of Labor-Management Standards, U.S. Department of Labor, 200 Constitution Ave., N.W., Room N-5605, Washington, D.C. 20210 .

For information on commenting, please contact: Kay H. Oshel at the above address; olms-public@dol.gov or (202) 693-1233 (not a toll-free number). Individuals with hearing impairments may call 1-800-877-8339 (TTY/TDD).