|November 5, 2008|
Office of Labor-Management Standards (OLMS)
Revised Form LM-30 - Labor Organization Officer and Employee Report
Frequently Asked Questions
Note: The information in these Frequently Asked Questions (FAQs) applies to the revised Form LM-30 which must be filed by a labor organization officer or employee for reports covering any of his or her fiscal years that began on or after August 16, 2007. The current Form LM-30 may be filed for reports covering any fiscal year beginning before that date. For information concerning the reporting requirements for the current Form LM-30 send a message to firstname.lastname@example.org, call the DOL Help Line at 1-866-487-2365, or contact the nearest OLMS field office, which can be located at http://www.dol.gov/esa/contacts/olms/lmskeyp.htm.
Q1. Who must file Form LM-30?
A. As described in more detail in the Form LM-30 instructions and throughout these FAQs, Labor Organization Officer and Employee Report Form LM-30 must be filed by any person who meets the following conditions during the fiscal year:
(2) The official or the official's spouse or minor child, directly or indirectly, held any legal or equitable interest in, received any payments or benefits with monetary value from, or engaged in any transactions or arrangements (including loans) with:
a) employers whose employees the official's labor organization represents or actively seeks to represent, or
b) certain other categories of employers as described in FAQ 45 through FAQ 56 below, or
c) businesses that make sales to, or otherwise have dealings with, the official's labor organization, with a trust in which the labor organization is interested, or with an employer whose employees the labor organization represents or is actively seeking to represent as discussed below in FAQ 32.
Q2. Does a labor organization officer or employee have to report payments received by, interests held by, or transactions and arrangements involving, the official's spouse or minor child?
A2. Yes, a labor organization officer or employee must report payments received by, interests held by, and transactions and arrangements involving, the official's spouse or minor child. "Minor child" means a son, daughter, stepson, or stepdaughter less than 21 years of age. Payments received by, interests held by, and transactions and arrangements involving, a minor child must be reported until the child turns 21. If the child reaches the age of 21 during the fiscal year, matters must be reported for that portion of the fiscal year before the child's 21st birthday. If a labor organization officer or employee is divorced during the fiscal year, interests and transactions for the spouse must be reported for that portion of the fiscal year prior to the divorce.
Q3. Must a labor organization officer or employee report payments that otherwise are required to be reported on a Form LM-30 but which are subsequently repaid by the recipient within the same fiscal year?
A3. No. Labor organization officers and employees need not report gifts that are rejected and returned and payments that are repaid. The same rule applies to hospitality items, such as meals, beverages, vacations, etc. The items are not reportable if reimbursement, as described below, is made. The recipient must reimburse the employer, business, or labor relations consultant for the gift, payment, or hospitality in the same fiscal year in which it was received. If the payment is made near the end of the fiscal year, reimbursement may be made in the next fiscal year, so long is it is done promptly. Where timely reimbursement is not made, the payment must be reported, although the filer may note that reimbursement was made.
Cash payments not promptly reimbursed must include interest on the payments, or the forgone interest will be reportable as a gift. Similarly, a gift of a car or a boat, for example, must be returned with compensation for its use at the fair market rate; any diminution in value or the forgone compensation must be reported as a gift.
In particular cases concerning serious conflicts of interest or attempts by labor organization officials to circumvent or evade the filing requirements, the Department may, by specific request, require reports of payments and gifts, etc., despite return or reimbursement. For example, a series of numerous, high-value payments made by an employer to a labor organization official must be reported on the Form LM-30 (by the labor organization officer or employee) even where each payment is promptly reimbursed, to avoid the nondisclosure of the substantial value that is conferred on an individual who has even short-term use of very large amounts of money.
B. Who is an Officer or Employee of a Labor Organization?
Q4. How is "labor organization officer" defined for purposes of Form LM-30?
A4. A labor organization officer is (1) a person identified as an officer by the constitution and bylaws of the labor organization; (2) any person authorized to perform the functions of president, vice president, secretary, or treasurer; (3) any person who in fact has executive or policy-making authority or responsibility; and (4) a member of a group identified as an executive board or a body which is vested with functions normally performed by an executive board.
Q5. Does the Department consider a trustee appointed by a national or international labor organization to administer a local labor organization in trusteeship to be an officer or an employee of the local?
A5. Generally being a trustee of a labor organization in trusteeship does not make one an officer of the labor organization. However, depending on the circumstances, such a trustee may be an employee of the local and therefore subject to the Form LM-30 reporting requirements. Further, again depending on the circumstances, the trustee may be an officer and/or employee of another labor organization and on that basis also would be subject to the Form LM-30 reporting requirements.
Q6. How is a "labor organization employee" defined for purposes of Form LM-30?
A6. Labor organization employee means any individual (other than an individual performing exclusively clerical or custodial services) employed by a labor organization within the meaning of any law of the United States relating to the employment of employees.
Q7. What are clerical and custodial services?
A7. If individuals employed by a labor organization are performing exclusively clerical or custodial services, they do not have to file Form LM-30. Clerical services are those involving typing, filing, bookkeeping, data entry, note-taking, or similar duties lacking decision-making authority. Custodial services are those associated with janitorial or routine maintenance tasks.
Q8. Our local's secretary maintains the membership list, types, files, and answers phones, but also collects cash dues, prints checks when authorized and approved by certain officers, and enters data into the local's computerized financial system. Because she handles money, she is bonded. Is she an "employee" for purposes of filing a Form LM-30?
A8. The secretary in question is a clerical employee for purposes of Section 202 of the LMRDA and is therefore not required to file a Form LM-30. Maintaining the membership list, typing, filing, data entry, and answering phones are within the applicable definitions of "clerical." While the remaining two duties of printing checks and collecting dues involve handling labor organization funds, as presented, they are clerical in nature and they do not evidence decision-making authority or discretion with labor organization finances, as the secretary may only issue checks when authorized by appropriate labor organization officials. The collection of dues is similarly the ordinary work of a clerk.
In determining whether the secretary is performing exclusively clerical duties for the purpose of filing a Form LM-30, it is irrelevant whether the secretary is bonded. It is longstanding OLMS policy that clerical employees collecting dues must be bonded with respect to that portion of the dues paid in cash.
Q9. Is an individual hired by a labor organization as an independent contractor a labor organization employee?
A9. No. Form LM-30 only applies to labor organization employees; it does not apply to independent contractors. If needed, the Department will provide guidance to assist individuals unsure of their status as employees or independent contractors.
Q10. When determining whether an individual is an employee or an independent contractor does the Department use the same rules that the IRS uses to make this determination?
A10. The Department uses similar rules to those of the IRS, the National Labor Relations Board, and the courts for distinguishing between employees and independent contractors. The Department will look at the facts in each case to determine the proper classification.
Q11. I am a part-time steward. I punch out to perform labor organization business. I am reimbursed by the local for my lost pay. Am I considered an employee of the labor organization and, if so, am I required to report these payments?
A11. While performing work on the local's behalf, a steward who is paid lost time serves as an employee of the local. Because the local labor organization is making the payments, there is no Form LM-30 reporting obligation for the lost-time pay. If a steward is paid by the employer for this time, however, the steward may have to report the payments. See FAQ 40 through 43 for information on reporting obligations for stewards who receive no-docking or union leave payments.
Q12. Are federal sector labor organization officers and employees covered by the Form LM-30 reporting provisions?
A12. No, officers and employees of labor organizations representing solely federal employees are not covered by Form LM-30 reporting requirements.
C. Reportable payments, interests, holdings, etc.
Q13. How does the Department define "benefit with monetary value?"
A13. "Benefit with monetary value" means anything of value, tangible or intangible. It includes any interest in personal or real property, gift, insurance, retirement, pension, license, copyright, forbearance, bequest or other form of inheritance, office, options, agreement for employment or property, or property of any kind.
Q14. What is a "bona fide investment"?
A14. A "bona fide investment" means personal assets of an individual held to generate profit that were not acquired by improper means or as a gift from any of the following: (1) an employer, (2) a business that deals with the filer's labor organization or a trust in which the filer's labor organization is interested, (3) a business a substantial part of which consists of dealing with an employer whose employees the filer's labor organization represents or is actively seeking to represent, or (4) a labor relations consultant to an employer. (see FAQ 47 for a definition of a trust in which a labor organization is interested/section 3(l) trust; see also FAQ 26 for information regarding reporting exceptions for bona fide investments).
Q15. What is the Department's definition of "directly or indirectly?"
A15. Directly or indirectly refers to any course, avenue, or method. Directly encompasses holdings and transactions in which the labor organization officer or employee, spouse, or minor child receives a payment or other benefit without the intervention or involvement of another party. Indirectly includes any payment or benefit which is intended for the labor organization officer or employee, spouse, or minor child or on whose behalf a transaction or arrangement is undertaken, even though the interest is held by a third party, or was received through a third party.
Q16. I am employed by XYZ Widgets and also serve as the president of the local labor organization representing XYZ Widgets employees. During a recent conversation with the XYZ Widgets human resources manager, I mentioned that I am placing my 15 year-old daughter in a private school. Shortly thereafter, XYZ Widget Company sent me a check for $1,000 with a note saying "Good luck with the new school!" Must I report the check?
A16. Yes. A labor organization officer who directly receives a gift, which is not a payment received as a bona fide employee, from an employer whose employees the officer's labor organization represents or is actively seeking to represent, must report the payment.
Q17. Same facts as above. What if I do not receive the check, but instead, my daughter receives a scholarship from the school made possible by a donation by the XYZ Widget Company earmarked for her?
A17. The scholarship must be reported as it is an indirect benefit with monetary value. Labor organization officers and employees must disclose any benefits received by them (or their spouse or minor child) from a third party where the third party is acting on behalf, or at the behest, of an employer or business that would have to report the benefit if they provided it directly to them (or their spouse or minor child).
Q18. What if my employer makes regular contributions to a local college for scholarships for all employees' children who attend the school and my 18 year-old child receives one of these scholarships? If I am a labor organization official, must I still report my child's scholarship?
A18. The scholarship would not be reportable if it was a benefit received as a bona fide employee. If the scholarship was available only to the children of labor organization officers, it would not be received as a bona fide employee, but would rather be an indirect benefit with monetary value.
Q19. What is the scope of "income"?
A19. Income means all income from whatever source derived, including, but not limited to, compensation for services, fees, commissions, wages, salaries, interest, rents, royalties, copyrights, licenses, dividends, annuities, honorarium, income and interest from insurance and endowment contracts, capital gains, discharge of indebtedness, share of partnership income, bequests or other forms of inheritance, and gifts, prizes or awards.
Q20. What is a "legal or equitable interest?"
A20. "Legal or equitable interest" means any property or benefit, tangible or intangible, which has an actual or potential monetary value for the filer, spouse, or minor child without regard to whether the filer, spouse, or minor child holds possession or title to the interest. For example, if a labor organization officer and spouse jointly own an accounting business that provides tax services to a number of clients, including the officer's labor organization or an employer whose employees the labor organization represents or is actively seeking to represent, the officer holds a legal interest in the company providing the services. Similarly, if a labor organization officer forms a tax preparation business with two partners and puts his or her share of the business in their spouse's name and the business prepares tax returns and LM reports for the officer's labor organization, the officer holds an equitable interest in a business that deals with his or her labor organization.
Q21. I am the treasurer of Local 227, and I am a candidate in the race for county treasurer. I have received campaign contributions from my employer, an employer with which Local 227 has a collective bargaining agreement. The contributions were made payable to me but earmarked for use in my campaign. Am I required to report these contributions?
A21. Yes. Political contributions to a labor organization officer or employee are payments of the type required to be reported on Form LM-30 if they are received from an employer or business that meets any of the conditions set forth in Item 6 or Item 7 of Form LM-30.
Q22. Must I report political contributions from an employer whose employees my labor organization represents that are made to my campaign fund for county treasurer rather than directly to me?
A22. Yes. Such a contribution to a labor organization officer's or employee's campaign fund is an indirect payment to the official and must be reported if it is received from an employer or business that meets any of the conditions set forth in Item 6 or Item 7 of Form LM-30.
Q23. The employer whose employees my labor organization represents contributes to a PAC that was established by my political party to support candidates campaigning for local office. As a local candidate, I have received monies from this fund. Must I report monies received from my party's PAC?
A23. No. Where PACs established by political parties support multiple candidates and contributions to them cannot be earmarked for the support of a particular candidate, contributions received from such PAC funds are not required to be reported on Form LM-30.
D. Reporting Exceptions in General/Scope of Labor Organization
Q24. Is there a de minimis exception where I don't have to report payments under a certain amount?
A24. Yes. While the LMRDA does not include a de minimis level, the Department has historically not required reports of payments or gifts of insubstantial value. For purposes of Form LM-30, labor organization officers and employees do not have to report any payments or gifts totaling $250 or less from any one source. Payments or gifts valued at $20 or less do not need to be included in determining whether the $250 threshold has been met. For example, if a labor organization officer or employee receives from an employer two gifts worth $20 each and two restaurant meals worth $150 each, the official need only keep records of the restaurant meals, and report the receipt of this $300 value. However, a series of payments or gifts designed to circumvent the $20 threshold must be reported.
Q25. I am an officer of a labor organization and was appointed a trustee of a pension plan. I attended a reception sponsored by a service provider at a convention of representatives of union and non-union plans. The reception was open to all convention attendees. Must I report the value of the reception?
A25. Labor organization officers and employees do not have to include the benefits, such as food and entertainment, received while in attendance at one or two widely-attended receptions, meetings, or gatherings in a single fiscal year for which an employer or business has spent $125 or less per attendee per gathering. Also, the value of those gatherings does not have to be included in determining whether the $250 threshold has been met. However, if an officer or employee attends three or more such widely-attended gatherings provided by an employer or business, the value of all such events must be counted. Also, if the benefit received for a single gathering exceeds $125, the officer or employee must include the value of the gathering in determining whether the $250 threshold has been met.
A gathering is widely attended if a large number of persons are in attendance and the attendees include labor organization officers and employees and a substantial number of individuals with no relationship to a labor organization or a section 3(l) trust of the union (see FAQ 47 for a definition of a trust in which a labor organization is interested/section 3(l) trust). For a gathering to qualify as widely attended, those with a relationship to a labor organization must be treated the same as others when the employer or business advertises or distributes invitations for the event and must be treated alike at the event.
Q26. Are there any other general reporting exceptions?
A26. Yes, there are two other general reporting exceptions that relate to bona fide investments and apply to most but not all of the Form LM-30 reporting requirements. (See the definition of "bona fide investment" at FAQ 14). First, under certain circumstances, labor organization officers and employees are not required to report holdings of, transactions in, or income from, bona fide investments in (1) securities traded on a securities exchange registered as a national securities exchange under the Securities Exchange Act of 1934 (including the American Stock Exchange, Boston Stock Exchange, Chicago Board Options Exchange, Chicago Stock Exchange, International Securities Exchange, NASDAQ, National Stock Exchange, New York Stock Exchange, Pacific Exchange, and Philadelphia Stock Exchange); (2) shares in an investment company registered under the Investment Company Act of 1940, or (3) securities of a public utility holding company registered under the Public Utility Holding Company Act of 1935.
Second, holdings of, transactions in, or income from, bona fide investments in securities other than those described above that are of insubstantial value or amount and occur under terms unrelated to a person's status in a labor organization are not required to be reported. Holdings or transactions involving $1,000 or less and receipt of income of $100 or less in any one security are considered to be insubstantial.
Q27. For the purposes of Form LM-30 reporting, what is the scope of "labor organization" in reference to an officer or employee of a labor organization?
A27. Labor organization means the local, intermediate, or national or international labor organization that employed the official, or in which the official held office, during the reporting period, and, in the case of a national or international labor organization officer or an intermediate labor organization officer, any subordinate labor organization of the officer's labor organization. Item 6 of Form LM-30 identifies the relationships between employers and "your labor organization" or "your union" that trigger a reporting requirement. Item 7 of the Form LM-30 identifies the direct and indirect relationships between a business (such as a goods vendor or a service provider) and "your labor organization" that trigger a reporting requirement. The terms "your labor organization" and "your union" mean:
The local labor organization.
The national or international labor organization and all of its affiliated intermediate bodies and all of its affiliated local labor organizations
But note: A national or international union officer does not have to report payments from or interests in businesses that deal with employers represented by, or actively being organized by, any lower level of the officer's labor organization. Such officers are also not required to report payments and other financial benefits received by their spouse or minor child as bona fide employees of a business or employer involved with a lower level of the officer's labor organization.
The national or international labor organization.
The intermediate body and all of its affiliated local labor organizations.
But note: An officer of an intermediate body does not have to report payments from or interests in businesses that deal with employers represented by, or actively being organized by, any lower level of the officer's labor organization. Such officers are also not required to report payments and other financial benefits received by their spouses or minor children as bona fide employees of a business or employer involved with a lower level of the officer's labor organization.
The intermediate body.
E. Reportable Relationships with Employers
Q28. How is "employer" defined by the LMRDA?
A28. The LMRDA defines an "employer" as any employer or any group or association of employers engaged in an industry affecting commerce (1) which is, with respect to employees engaged in an industry affecting commerce, an employer within the meaning of any law of the United States relating to the employment of any employees or (2) which may deal with any labor organization concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work, and includes any person acting directly or indirectly as an employer or as an agent of an employer in relation to an employee but does not include the United States or any corporation wholly owned by the Government of the United States or any State or political subdivision thereof.
Q29. Must I report payments from every employer?
A29. No. Generally, a labor organization officer or employee must only report payments from the following employers or labor relations consultants to such employers:
Q30. What types of payments, interests, transactions and arrangements from an employer whose employees my labor organization represents or is actively seeking to represent must I report?
A30. A labor organization officer or employee must complete Form LM-30 if the official or the official's spouse or minor child, directly or indirectly:
See the instructions for revised Form LM-30 for examples of these payments, interests, transactions and arrangements.
Q31. Must I report wages I receive as an employee of the employer with which my labor organization has a collective bargaining agreement?
A31. No. Payments and benefits received as a bona fide employee of the employer for past or present services are not reportable. A payment received as a bona fide employee includes wages and employment fringe benefits, as well as compensation for work previously performed, such as payments or benefits received under a bona fide health, welfare, pension, vacation, training or other benefit plan, leave for jury duty, and all payments required by law.
Q32. What constitutes Actively Seeking to Represent?
A32. Actively seeking to represent means that a labor organization has taken steps during the labor organization officer's or employee's fiscal year to become the bargaining representative of the employees of an employer, including but not limited to:
Note: Where an officer's or employee's labor organization has taken any of the foregoing steps, the official is required to report a payment or interest received, or transaction conducted, during that reporting period.
Q33. Our labor organization is picketing a clothing retailer solely for the purpose of alerting the public that the retailer is selling goods that are made by children working in oppressive conditions in violation of accepted international standards. Does the Department consider this kind of picketing to mean that our labor organization is "actively seeking to represent" the clothing retailer?
A33. Based on the information presented, no. Leafleting or picketing that is wholly without the object of organizing the employees of a targeted employer, such as purely "informational" or "area standards" picketing, will not alone trigger a reporting obligation.
Q34. A labor organization has sent a "salt" (an individual who obtains employment with a non-unionized employer with the objective of organizing the workforce) to an employer. Are the wages paid by the employer to the "salt" reportable?
A34. No. The "salt" would not be required to report his or her bona fide wages.
Q35. I am a labor organization officer and run a cleaning business on the side. I just found out that my labor organization has "salted" one of the employers I have a cleaning contract with. This contract accounts for roughly half of my business. Now that my labor organization is seeking to represent this employer, I am probably required to report the contract; however, filing this information would disclose the organizing efforts. Am I still obligated to file a report?
A35. Yes. The Department recognizes that some organizing activities are initiated without notice to the public or an employer, but there would appear to be few, if any, situations, where the disclosure of a reported interest on the Form LM-30 would be the first open acknowledgment of the labor organization's active efforts to represent employees. Form LM-30 must be filed 90 days after the end of the fiscal year during which the payment occurred, so the employer would likely be aware of the organizing efforts before the report was due.
Q36. What situations constitute an arrangement?
A36. Arrangement means any agreement or understanding, tacit or express, or any plan or undertaking, commercial or personal, by which the filer, spouse, or minor child will obtain a benefit, directly or indirectly, with an actual or potential monetary value. The term "arrangement" is very broad and covers both personal and business transactions, including an unwritten understanding. For example, if during the reporting period an employer's representative offered a union officer a job with the employer, the officer must report the offer unless he or she rejected it. A standing job offer must be reported because it carries the potential of monetary value to the filer.
Q37. What exceptions exist for reporting payments, interests, transactions and arrangements with employers whose employees my labor organization represents or is actively seeking to represent?
A37. There are four exceptions for reporting payments, interests, transactions and arrangements with employers whose employees a labor organization officer's or employee's labor organization represents or is actively seeking to represent: (1) The bona fide investment in registered securities exception (see FAQ 26); (2) the $1,000 threshold for non-registered securities (see FAQ 26); (3) the de minimis threshold/widely-attended gathering exception (see FAQ 24 and 25); and (4) payments and other benefits received as a bona fide employee of such employer (see FAQ 31).
Q38. What is a bona fide employee?
A38. A bona fide employee is an individual who performs work for, and subject to the control of, the employer.
Q39. Does the bona fide employee exception apply to all payments, interests, transactions and arrangements with employers whose employees my labor organization represents or is actively seeking to represent?
A39. No. This exception does not apply to loans or to transactions involving interests in such employers. For example, if the employer has a program in which bona fide employees may sell their stock in the company, this exception would not apply.
Q40. How does the bona fide employee exception apply to payments received as a result of a "union leave" or "no-docking" arrangement with the employer?
A40. Compensation received under a "union-leave," or "no-docking" policy is not received as a bona fide employee of the employer making the payment. Under a union-leave policy, the employer continues the pay and benefits of an individual who works full time for a union. Under a no-docking policy, the employer permits individuals to devote portions of their workday or workweek to union business, such as processing grievances, with no loss of pay. Such payments are received as an employee of the labor organization and thus, such payment must be reported by the labor organization officer or employee unless they (1) totaled 250 or fewer hours during the filer's fiscal year and (2) were paid pursuant to a bona fide collective bargaining agreement. If a filer must report payments for union-leave or no-docking arrangements, the filer must enter the actual amount of compensation received for each hour of union work. If union-leave or no-docking payments are received from multiple employers, each such payment is to be considered separately to determine if the 250-hour threshold has been met (see FAQ 42).
Q41. What if I receive payments under a union leave or no-docking policy that is simply a longstanding practice and not in the collective bargaining agreement?
A41. If the union-leave or no-docking policy does not appear in the collective bargaining agreement, the 250-hour threshold does not apply. In that situation, employer payments for all time spent performing union business during company time must be reported.
Q42. Our labor organization has multiple bargaining units with a number of different employers. However, each unit does not have their own steward. Rather, one steward will perform services on behalf of several units. Our labor organization has negotiated no-docking provisions with all signatory employers. How would a steward report payments under either provision from multiple employers? Does the 250-hour threshold apply to each separate employer, or does time from each employer accumulate together?
A42. If union leave or no-docking payments are received from multiple employers, each such employer is to be considered separately to determine if the 250-hour threshold has been met. For example, if Steward Allen receives no-docking payments from employers B, C, and D, Allen should count the number of hours of union work funded by each separate employer to determine if the 250-hour threshold has been exceeded: all hours paid by B would be calculated independently, as would C and D. If Allen worked 300 hours for B, 400 hours for C, and 100 hours for D, Allen would file a Form LM-30 reporting the hours worked for B and for C, but not the hours worked for D.
Q43. The instructions to the revised Form LM-30 state that "[f]or purposes of Form LM-30, stewards receiving union-leave/no-docking payments from an employer . . . are considered employees of the labor organization." (note to D4 of instructions). Would a steward who receives union-leave/no-docking payments have to report a loan from an employer whose employees are represented by the steward's union, even if the union-leave/no-docking payments are not reportable because of the 250 hour threshold?
A43. No. Union stewards receiving union-leave/no-docking payments from an employer while performing duties under the direction and control of the union are considered employees of the labor organization under the Form LM-30 final rule. However, because there has been some confusion over the application of the 250 hour threshold for reporting, the following guidance is provided. A union steward who receives 250 or fewer hours of union-leave or no-docking payments from the employer pursuant to a bona fide collective bargaining agreement will not be required to file a Form LM-30. A union steward who receives 250 or fewer hours of union-leave or no-docking payments from the employer that are not paid pursuant to a bona fide collective bargaining agreement will be required to only report those union leave/no docking payments on Form LM-30. A union steward who receives more than 250 hours of union-leave or no-docking payments from the employer will be required to report the union-leave or no-docking payments as well as any other payments required to be reported on Form LM-30. This guidance is applicable only to union stewards who would be considered to be employees of the union due solely to union work performed under a union-leave or no-docking policy. Stewards who would be considered union employees for other reasons, such as direct salaries or lost-time payments from the union, are not covered by this guidance.
Q44. I am an officer of an international labor organization and a member of the board of directors of an employer whose employees my labor organization represents. Am I required to report the directors' fees and reimbursed expenses I receive?
A44. Yes, these payments must be reported.
Q45. Besides payments from employers whose employees the labor organization represents or is actively seeking to represent, what types of other employers must labor organization officers and employees report payments from?
A45. Labor organization officers and employees must report payments of money or other things of value (including reimbursed expenses) from the following types of employers and labor relations consultants to such employers:
See page 6 of the instructions for revised Form LM-30 for examples of payments from these types of employers.
Q46. Are there any exceptions to the reporting of payments from the types of employers listed above?
A46. Yes. A labor organization officer or employee does not have to report:
- money paid by employers to their employees as compensation for, or by reason of, service as an employee;
- in satisfaction of a court or administrative judgment, or in settlement of a dispute;
- with respect to the sale or purchase of an article or commodity at the prevailing market price in the regular course of business;
- with respect to money deducted from the wages of employees in payment of union dues;
- with respect to money paid to certain health and welfare trust funds or labor management committees.
Q47. How do I know if a trust is one in which my labor organization is interested?
A47. A trust in which a labor organization is interested means a trust or other fund or organization (1) which was created or established by the labor organization, or one or more of the trustees or one or more members of the governing body of which is selected or appointed by the labor organization, and (2) a primary purpose of which is to provide benefits for the members of such labor organization or their beneficiaries.
Q48. Under what circumstances do I need to report payments from a labor organization, other than my own, which is an employer?
A48. A labor organization officer or employee must report payments from a labor organization that:
Q49. Must a labor organization official report payments from a labor organization that is affiliated with the labor organization in which the officer or employee serves?
A49. As a general rule, no. Reports are not required for payments received from a labor organization that is affiliated with the official's labor organization, such as a local, intermediate, or national or international or other parent body. For example, an officer of XYZ Local 1 would not report a payment received from either an XYZ regional council, another XYZ local, or the XYZ international, even if all of these entities were employers. Similarly, an XYZ international officer would not report a payment from an XYZ local. An exception would be a payment to influence an internal union election. See FAQ 57.
Q50. I am an officer of International Labor Organization A. Our employees are represented by Local 1 of International Labor Organization B. Local 1 employs a business agent and a secretarial staff. I provided sporting event tickets valued at over $250 to the business agent of Local 1. Must the business agent report the tickets?
A50. Yes. A labor organization official must report payments from a labor organization if that labor organization is an employer whose employees the official's labor organization represents.
Q51. I am an officer of ABC Local 1, which represents workers in widget manufacturing. Officials of DEF Local 2, which also represents workers in widget manufacturing, frequently provide me with meals and entertainment, totaling in excess of $250 during the fiscal year. DEF Local 2, which employs a small clerical staff, has recently tried to organize employers whose employees we already represent. Must I report the meals and entertainment?
A51. Yes. A labor organization official must report payments from a labor organization other than his or her own if that labor organization is an employer and claims jurisdiction over work that is also claimed by the official's labor organization.
Q52. What if DEF Local 2 has not tried to organize or gain recognition by employers whose employees we already represent. Must I still report the meals and entertainment?
A52. Yes. A Union official must report payments from a labor organization other than his or her own if that labor organization is an employer and claims jurisdiction over work that is also claimed by the official's labor organization. It is not necessary that the other labor organization have taken steps to try to organize employees represented by the official's labor organization.
Q53. I am an officer of International Labor Organization A and will be voting on whether to merge with International Labor Organization B. Representatives of International Labor Organization B are allowing me use of a union-owned apartment near their headquarters over the next several weeks prior to the vote so that I can become familiar with their staff and location. Must I report the use of the apartment?
A53. Yes. A labor organization official must report payments from a labor organization that is an employer and is a party to or will be affected by any proceeding concerning a matter in which the official has voting authority or other ability to influence the outcome of the matter.
Q54. I am a labor organization president and a trustee of a Taft-Hartley pension fund in which my labor organization is interested. The pension fund utilizes a third-party administrator to run the fund and does not have any employees. Do I need to report the fee that I receive from the fund as compensation for my services?
A. No. A labor organization officer or employee who is a trustee of a trust that is not an employer (see FAQ 28) does not have to report the value of the fees or reimbursed expenses received for services as a trustee.
Q55. I am a labor organization president and a trustee of a Taft-Hartley pension fund in which my labor organization is interested. The pension fund is administered by a staff of employees. Do I need to report the fee that I receive from the fund as compensation for my services?
A55. Yes. A labor organization officer or employee must report payments, including reimbursed expenses, from a trust in which the official's labor organization is interested for the official's service as a trustee if the trust is an employer (see FAQ 28 for the definition of employer). In the unusual situation where a trustee is considered an employee of the trust, the payments would be exempt under the bona fide employee exception (see FAQ 46).
Q56. I am a labor organization officer running for a local public office. Employers in the industry organized by my labor organization and the employer whose employees my labor organization represents, make contributions. Am I required to report these campaign contributions?
A56. Yes. Such contributions must be reported, unless the de minimis or another exemption is applicable. Even if the payments are made to a separate campaign fund, the payments must be reported as an "indirect" payment to the labor organization officer or employee.
Q57. What are the improper purposes for which any payment of money or other thing of value from any employer (or labor relations consultant to any employer) must be reported?
A57. The improper purposes for payments to labor organization officers and employees are:
(1) Not to organize employees;
See pages 6 and 7 of the instructions for revised Form LM-30 for examples of these improper payments.
Q58. Are there any exceptions for reporting these types of payments?
A58. No, these types of payments must always be reported.
F. Reportable Relationships with Businesses
Q59. What is a "business"?
A59. For purposes of Form LM-30, "business" refers to a vendor of goods or provider of services. A payment from a business may be required to be reported, whether or not the business meets the definition of an "employer."
Q60. When is a labor organization officer or employee required to file Form LM-30 for payments received from, and interests held in, businesses?
A60. Labor organization officers or employees must file Form LM-30 if they or their spouse or minor child, directly or indirectly, held an interest in, or received any income or other benefit with monetary value (including reimbursed expenses) from a business that meets any of the following conditions:
See pages 8 and 9 of the instructions for revised Form LM-30 for examples of payments from these types of businesses.
Q61. Are there any exceptions for reporting payments from or interests in businesses?
A61. Yes, there are three exceptions for reporting payments and interests from businesses: (1) The bona fide investment in registered securities exception (see FAQ 26); (2) the $1,000 threshold for non-registered securities (see FAQ 26); and (3) the de minimis threshold/widely-attended gathering exception (see FAQ 24 and 25).
Q62. What amount of business qualifies as a "substantial part"?
A62. Substantial part means 10% or more. Where a business's receipts from an employer whose employees the officer's or employee's labor organization represents or is actively seeking to represent constitute 10% or more of its annual receipts, a substantial part of the business consists of dealing with this employer.
Q63. How do I know if a vendor's dealings with an employer whose employees my labor organization represents or is actively seeking to represent are 10% or more if I do not have an ownership interest? For example, during the fiscal year I received sporting event tickets valued at over $300 from a vendor, but I have no idea if the vendor's business with my employer accounts for 10% or more of its receipts.
A63. If a labor organization official does not know the amount of business dealings between the vendor and his or her employer, the official should request such information in writing from the vendor. If the vendor refuses to provide the information, the official should contact OLMS for assistance. In the meanwhile, the official should make a good faith estimate, based on the information reasonably available, whether the 10% threshold has been met. If such estimate exceeds the 10% threshold, then the official should file the report and explain that the vendor failed to provide requested information. If the estimate yields a figure less than 10%, no report is required, but the official should retain the written request for information he or she presented to the vendor and any work sheet used to arrive at the less-than-10% figure. Under these circumstances, absent collusion or bad faith, the labor organization officer or employee need not be concerned with criminal or civil enforcement, despite his or her inability to report this required information.
Q64. What constitutes "dealing"?
A64. "Dealing" means to engage in a transaction (bargain, sell, purchase, agree, contract) or to in any way traffic or trade, including solicitation for business.
Q65. Dealing includes the solicitation for business. What level of business interest qualifies as solicitation?
A65. The term "traffic or trade" includes not only financial transactions that have occurred but also the act of soliciting for business. Thus, for example, potential vendors or service providers attempting to win business with a labor organization will be considered to be "dealing" with the labor organization to the same extent as vendors who are already doing business with the labor organization. Potential vendors must engage in the active and direct solicitation of business (other than by mass mail, telephone bank, or mass media). A business that merely passively advertises its services generally and would provide services consumed by, for example, a labor organization would not meet this test. The potential vendor must be actively seeking the commercial relationship. Under certain circumstances, the payment itself will be evidence of the solicitation of business, such as a potential vendor who treats a labor organization official to a golf outing and dinner to discuss the vendor's products.
Q66. A benefit manager who is seeking our labor organization's business provided me and several other officers with dinner, a golf outing, and tickets to a sporting event (totaling over $250). Must we report these items even though the benefit manager is only seeking our business?
A66. Yes. The dinner, golf outing, and sporting event tickets must be reported. Potential vendors or service providers engaging in active and direct solicitation of a labor organization or a trust in which the labor organization is interested in an attempt at winning business with the labor organization or trust will be considered to be "dealing" with the labor organization to the same extent as vendors who are already doing business with the labor organization. Members deserve to know if the labor organization's purchases of goods and services were based on merit rather than the financial interest of the labor organization officers.
Q67. Are Form LM-30 reports required for payments received from attorneys who are designated legal counsel?
A67. Yes. Labor organization officers and employees must report payments and benefits received from an attorney who is an employer and who is or seeks to become a designated legal counsel for the labor organization. A designated legal counsel is a lawyer recommended by the labor organization to its members for representation in workers' compensation, personal injury, or other matters. Labor organization members have the right to evaluate whether a lawyer's presence on a list of designated legal counsel is based on merit rather than a financial relationship between the lawyer and labor organization officials.
Q68. I am a labor organization officer. As a side job, my brother-in-law and I started a computer service and repair company. We recently received a contract from Company A, one of the employers whose employees my labor organization represents. How do I determine whether my company deals "in substantial part" with the employer?
A68. The labor organization official should tabulate all the business's receipts from the employer whose employees the official's labor organization represents or is actively seeking to represent. This total should then be compared to the business's overall receipts to determine if revenue from the employer in question amounts to 10% or more of the business's overall receipts. If so, the business deals in substantial part with the employer, and the labor organization official is subject to the Form LM-30 requirements.
Q69. I received a payment from a company that does a small amount of business with my labor organization. Must I report the payment?
A69. Yes. A business any part of which consists of buying or selling or otherwise dealing with an officer's or employee's labor organization or a trust in which that labor organization is interested will trigger the reporting requirements. The statute requires that payment to an official by businesses dealing or seeking to deal with the official's labor organization or the labor organization's trust be reported regardless of the percentage of overall receipts the dealing represents.
G. Payments from Financial Institutions
Q70. What loans and other payments from financial institutions do not have to be reported on the Form LM-30?
A70. The Form LM-30 instructions describe four broad types of relationships between a labor organization officer or employee and an employer or business (see FAQ 28 ("employer") and FAQ 59 ("business")). The type of relationship determines what is reportable and which exemptions may apply. A financial institution is treated the same way as other employers or businesses for Form LM-30 reporting purposes except as follows:
Q71. Is my home loan reportable on Form LM-30?
A71. If the financial institution from which you receive your loan is an employer whose employees your labor organization represents or is actively seeking to represent then the home loan is reportable. The home loan is also reportable if the financial institution is a trust in which your labor organization is interested. Finally, the home loan is reportable if the financial institution is 1) a business that buys from, sells or otherwise deals with your labor organization, 2) a business that buys from, sells or otherwise deals with a trust in which your labor organization is interested, or 3) a business a substantial part of which (10% or more) consists of buying from, selling to or otherwise dealing with an employer whose employees your labor organization represents or is actively seeking to represent.
Q72. I receive a home loan from a bank that does not deal with my labor organization, any trust in which my labor organization is interested, or my employer. The loan was not made for any of the improper purposes listed in FAQ 57. Must I report the home loan if it is based upon the bank's own criteria and made on terms unrelated to my status in a labor organization?
Q73. What if the value of my transactions, interest, and dividends from a financial institution do not reach the de minimis threshold, even though that financial institution deals with the labor organization of which I am an officer?
A73. If the de minimis threshold for an otherwise reportable payment or holding is not reached, no report is necessary.
H. Civil and Criminal Liability
Q74. As a labor organization officer or employee, what are my responsibilities regarding the accuracy of a submitted Form LM-30 and what are the penalties for a violation of these responsibilities?
A74. The labor organization officer or employee required to file Form LM-30 must sign the completed report and is personally responsible for its filing and accuracy. Under the LMRDA, this individual is subject to criminal penalties for willful failure to file a required report and for false reporting. False reporting includes making any false statement or misrepresentation of a material fact while knowing it to be false, or for knowingly failing to disclose a material fact in a required report or in the information required to be contained in it or in any information required to be submitted with it.
The reporting labor organization officer or employee is also subject to civil prosecution for violations of the filing requirements. Section 210 of the LMRDA (29 U.S.C. 440) provides that "whenever it shall appear that any person has violated or is about to violate any of the provisions of this title, the Secretary may bring a civil action for such relief (including injunctions) as may be appropriate."
The officers and employees responsible for filing Form LM-30 are also subject to criminal penalties for false reporting and perjury under Sections 1001 of Title 18, 1746 of Title 28, and 1621 of Title 18 of the United States Code.
Q75. If a report must be filed, does that mean a crime has been committed?
A75. No. The reporting requirements do not control whether a financial relationship is lawful or unlawful, and the legality of any financial relationship does not affect whether it must be reported. Although some payments from employers to labor organizations and labor organization officers constitute a crime, not all such payments do. Willful violations of section 302(a) and (b) of the LMRA are subject to criminal prosecution only by the Department of Justice, not the Department of Labor.
This guidance at times discusses the language of section 302(c) of the LMRA because "payments of the kind referred to in section 302(c)" need not, in certain circumstances, be reported on the Form LM-30. When determining whether a payment is reportable, the guidance does not interpret the provisions of section 302(c), and conclusions reached by the Department of Labor regarding payments of the kind referred to in section 302(c) would not bind the Department of Justice in carrying out its criminal enforcement responsibilities.
I. Completing Form LM-30
Q76. Is there a corresponding form to be filed by employers who make payments?
A76. Yes. Employers must file annual reports to disclose certain specified financial dealings with their employees, labor organizations, labor organization agents, and labor relations consultants. Employer Report, Form LM-10, must be filed by employers to disclose:
Q77. How do I get a copy of Form LM-30?
A77. A blank fillable Form LM-30 can be downloaded from the OLMS Web site at www.olms.dol.gov. The revised Form LM-30 must be filed by a labor organization officer or employee for reports covering any of his or her fiscal years that began on or after August 16, 2007. The current Form LM-30 may be filed for reports covering any fiscal year that began before that date.
Q78. Do I complete a separate revised Form LM-30 for each employer or business with which I had reportable activity?
A78. No. A labor organization officer or employee should only file one Form LM-30 for a fiscal year. The official must complete Part A (Items 1 - 7 and Item 8, the signature line). The official must also complete a separate Part B (Schedules 1 - 4), in accordance with the instructions to the form, for each employer or labor relations consultant for which he or she answered "yes" in Item 6 and for each business for which he or she answered "yes" in Item 7. Schedules 1 and 2 must be completed on every Part B; Schedule 3 is only applicable to payments from an employer or labor relations consultant to an employer; and Schedule 4 is only applicable to payments from businesses.
Q79. How do I obtain a file number, which is required in Item 1 of Form LM-30?
A79. The Office of Labor-Management Standards (OLMS) assigns a file number for each reporting officer or employee. If this is the filer's first time submitting Form LM-30, Item 1 should be left blank. The filer will be notified of the assigned file number.
Q80. When is Form LM-30 due?
A80. Form LM-30 must be filed within 90 days after the end of the filer's fiscal year. If, however, the filer was a labor organization officer or employee for only a portion of the fiscal year, the report may be limited to that portion of the fiscal year.
Q81. Can I use the calendar year as my fiscal year?
A81. Yes, normally a labor organization officer or employee files a personal tax return on a calendar year basis and uses the calendar year as his or her fiscal year.
Q82. What if my Form LM-30 is filed late or I fail to file it? What are the ramifications? Are there any monetary penalties?
A82. The LMRDA does not authorize civil monetary penalties for the late filing of any required report, including the Form LM-30. However, it does authorize the Department of Labor to initiate a civil action in order to compel the filing of any required report and provides for criminal penalties for willfully failing to file a required report or submitting a false report.
Q83. Where do I file my report?
A83. The completed Form LM-30 should be sent to the following address:
U.S. Department of Labor
Q84. Does the Form LM-30 become a public document like the Form LM-2, available for inspection by anyone?
A84. Yes. All reports required to be filed with OLMS under the LMRDA are public information. Therefore, it is not necessary to make a request under the Freedom of Information Act (FOIA) to obtain copies of Form LM-30 reports. Anyone can view and print Form LM-30 reports for the year 2000 and later at www.unionreports.gov. Also, earlier reports can be ordered at this website. Form LM-30 reports may also be examined, and copies purchased, at the OLMS Public Disclosure Room at:
U.S. Department of Labor
Q85. What if reporting a transaction on Form LM-30 would violate a confidentiality clause?
A85. There is no exemption for confidentiality clauses in the LMRDA. The only confidentiality recognized by the LMRDA is that of attorney-client privilege, contained in Section 204 of the LMRDA, which states that "nothing contained in this Act shall be construed to require an attorney who is a member in good standing of the bar of any State, to include in any report required to be filed pursuant to the provisions of this Act any information which was lawfully communicated to such attorney by any of his clients in the course of a legitimate attorney-client relationship." 29 U.S.C. 434. If a labor organization officer or employee believes that completing Form LM-30 will result in the disclosure of sensitive, confidential or proprietary information that could cause substantial harm to the official's business, professional, or other interests, the issue should be discussed with OLMS prior to the filing of the report.
Q86. If a labor organization officer filed a Form LM-30 for the previous year, is the officer required to file a blank form in subsequent years if no transaction occurs that is required to be reported?
A86. No. If a labor organization officer or employee does not have any interest, payment, transaction or arrangement during a fiscal year that is required to be reported, no report is required. This is so even if the official engages in activities that would otherwise be reported, but are exempted due to the $250 de minimis threshold or any other exception. A report with no transaction listed (that is, a blank report) should never be filed.
Q87. How do I file an amended Form LM-30?
A87. Complete the form in its entirety and write "Amended" at the top of Page 1.
Q88. As a labor organization officer, what are my responsibilities regarding recordkeeping for the Form LM-30?
A88. The labor organization officer or employee required to file Form LM-30 is responsible for maintaining records on the matters required to be reported that will provide in sufficient detail the necessary basic information and data from which the documents may be verified, explained or clarified, and checked for accuracy and completeness. These records include vouchers, worksheets, receipts, financial and investment statements, contracts, correspondence, and any applicable resolutions, in their original electronic and paper formats, and any electronic programs by which they are maintained. Records must be kept available for examination for a period of not less than five years after the filing of the Form LM-30.
Last Updated: 10/18/07