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| November 5, 2008 DOL Home > ESA > OLMS > Form LM-2 > FAQs > Items 1-21 |  |
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Office of Labor-Management Standards (OLMS)
Form LM-2 - Frequently Asked QuestionsItems 1-21 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.
A. The file number is the 6-digit number that OLMS has assigned to the labor organization. Q. How do I obtain my labor organization's file number if I cannot obtain it from prior reports? A. You may obtain your labor organization's file number from the OLMS Web site at http://www.union-reports.dol.gov or by contacting the nearest OLMS field office. Q. Can the report ever cover more than a 12-month period? A. No. The report should never cover more than a 12-month period. For example, if the union's 12-month fiscal year begins on January 1 and ends on December 31, enter these dates as 01/01/20XX and 12/31/20XX. It would be incorrect to enter January 1 of one year through January 1 of the next year. Q. What do I do if my labor organization has changed its fiscal year? A. If the fiscal year changed, enter in Item 2 (Period Covered) the ending date for the period of less than 12 months, which is the new fiscal year ending date, and report in Item 69 (Additional Information) that the union changed its fiscal year. For example, if the fiscal year ending date changes from June 30 to December 31, a report must be filed for the partial year from July 1 to December 31. If the partial year report is due prior to March, 2005, the report may be filed on the old Form LM-2. Thereafter, the annual report should cover a full 12-month period from January 1 to December 31. Q. Do I always have to complete Item 3? A. No. Do not complete Item 3 unless the report you are filing is an amended, hardship exempted, or terminal report. Enter an "X" in the box in Item 3(a) if the labor organization is filing an amended report correcting a previously filed report. Enter an "X" in the box in Item 3(b) if the labor organization is filing under the hardship exemption procedures defined in Section IV of the instructions for revised Form LM-2. Enter an "X" in the box in Item 3(c) if the labor organization has gone out of business by disbanding, merging into another labor organization, or being merged and consolidated with one or more labor organizations to form a new labor organization, and this is the labor organization's terminal report. Q. What do I report in Item 4 (Affiliation or Organization Name)? A. Enter the name of the national or international labor organization that granted the labor organization a charter. "Affiliates" are labor organizations chartered by the same parent body, governed by the same constitution and bylaws, or having the relationship of parent and subordinate. For example, a parent body is an affiliate of all of its subordinate bodies, and all subordinate bodies of the same parent body are affiliates of each other. If the labor organization has no such affiliation, enter the name of the labor organization as currently identified in the labor organization's constitution and bylaws or other organizational documents. Q. What do I report in Item 5 (Designation)? A. Enter the specific designation that is used to identify the labor organization, such as Local, Lodge, Branch, Joint Board, Joint Council, District Council, etc. Q. What do I report in Item 6 (Designation Number)? A. Enter the number or other identifier, if any, by which the labor organization is known. Q. What do I report in Item 7 (Unit Name)? A. Enter any additional or alternate name by which the labor organization is known, such as "Chicago Area Local." Q. What do I report in Item 8 (Mailing Address)? A. Enter the current address where mail is most likely to reach the labor organization as quickly as possible. Be sure to indicate the first and last name of the person, if any, to whom such mail should be sent and include any building and room number. Q. What if the records necessary to verify the report are kept at an address not listed in Item 8? A. If the records required to be kept by the labor organization to verify the report are not kept at the address reported in Item 8 (Mailing Address), answer "no" to Item 9 (Place Where Records are Kept) and provide in Item 69 (Additional Information) the address where the labor organization's records are kept. Otherwise, answer "yes" to Item 9. Q. How do I answer Item 10 (Trusts or Funds)? A. Answer "Yes" to Item 10 if the labor organization has an interest in a trust as defined in 29 U.S.C. 402(l) (see Section X of the revised Form LM-2 Instructions). Provide in Item 69 (Additional Information) the full name, address, and purpose of each trust. Also include in Item 69 the fiscal year ending date for any trust for which a Form T-1 is filed if the trust's fiscal year is different from that of the labor organization. If no Form T-1 is required to be filed on the trust because (1) the trust had annual receipts of less than $250,000 during the trust's most recent fiscal year or (2) the labor organization's financial contribution to the trust or the contribution made on the labor organization's behalf, or as a result of a negotiated agreement to which the labor organization is a party, is less than $10,000, the labor organization should also report the amount of the contribution in Item 69 and, if the contribution was made by the labor organization itself, in the appropriate disbursement item in Statement B. Additionally, if no Form T-1 is filed because financial information is already available as a result of the disclosure requirements of another Federal statute, list the name of any government agency, such as the Employee Benefits Security Administration (EBSA) of the Department of Labor, with which the trust files a publicly available report, and the relevant file number of the trust, or otherwise indicate where the relevant report may be viewed. See the instructions for Form T-1, Trust Annual Report, for guidance on reporting the assets, liabilities, receipts, disbursements, and other information about these entities. Q. What do I do if I answered "yes" to Item 11 (Political Action Committee Funds)? A. If the labor organization answered "Yes" to Item 11, provide in Item 69 (Additional Information) the full name of each separate political action committee (PAC) and list the name of any government agency, such as the Federal Election Commission or a state agency, with which the PAC has filed a publicly available report, and the relevant file number of the PAC. (PAC funds kept separate from the labor organization's treasury need not be included in the labor organization's Form LM-2 if publicly available reports on the PAC funds are filed with a Federal or state agency.) Q. Should a union answer "Yes" to Item 11 on Form LM-2 if it has a political organization for which reports are filed with the Internal Revenue Service pursuant to 26 U.S.C. 527? A. No, a Section 527 organization is not required to be reported in Item 11. Q. What do I do if I answered "Yes" to Item 12? A. If the labor organization answered "Yes" to Item 12, indicate in Item 69 (Additional Information) whether the audit or review was performed by an outside accountant or a parent body auditor/representative. If an outside accountant performed the audit or review, provide the name of the accountant or accounting firm. Report any audit or review by an outside accountant or a parent body auditor/representative in which the labor organization's books and records were examined to verify their accuracy and validity. The term "audit or review" does not include providing assistance in developing a bookkeeping system, providing routine bookkeeping services, or merely compiling information from the labor organization's books and records to prepare Form LM-2 or other financial reports. Also, do not answer "Yes" to Item 12 if an audit committee or trustees of the labor organization performed the audit or review. Q. How do I answer Item 13 (Losses or Shortages)? A. Answer "Yes" to Item 13 if the labor organization experienced a loss, shortage, or other discrepancy in its finances during the period covered. Describe the loss or shortage in detail in Item 69 (Additional Information), including such information as the amount of the loss or shortage of funds or a description of the property that was lost, how it was lost, and to what extent, if any, there has been an agreement to make restitution or any recovery by means of repayment, fidelity bond, insurance, or other means. Q. What do I report in Item 14 (Fidelity Bond)? A. Enter the maximum amount recoverable for a loss caused by any officer, employee, or agent of the labor organization who handled the labor organization's funds. Enter "0" if the labor organization was not covered by a fidelity bond during the reporting period. Note that if a labor organization has property and annual financial receipts that exceed $5,000, each of the labor organization's officers, employees, and agents who handles funds or other property of the labor organization must be bonded. The amount of the bond must be at least 10% of the value of the funds handled by the individual during the last reporting period, up to a maximum bond of $500,000. The bond must be obtained from a surety company approved by the Secretary of the Treasury. If you have any questions or need more information about bonding requirements, contact the nearest OLMS field office. Q. What do I do if I answered "Yes" to Item 15 (Acquisition or Disposition of Assets)? A. If the labor organization answered "Yes" to Item 15, describe in Item 69 (Additional Information) the manner in which the labor organization acquired or disposed of the asset(s), such as donating office furniture or equipment to charitable organizations, trading in assets, writing off a receivable, or giving away other tangible or intangible property of the labor organization. Include the type of asset, its value, and the identity of the recipient or donor, if any. Also report in Item 69 the cost or other basis at which any acquired assets were entered on the labor organization's books or the cost or other basis at which any assets disposed of were carried on the labor organization's books. For example, assets may be entered on the labor organization's books at cost and carried at that value; carried at cost less accumulated depreciation; or carried at scrap value or other nominal value because the assets were fully depreciated or were expensed when purchased (that is, the cost was charged to current expenses rather than entered on the books and periodically depreciated). For assets that were traded in, enter in Item 69 the cost, book value, and trade-in allowance. Q. What do I report in Item 69 (Additional Information) if I answered "Yes" to Item 16 (Pledged or Encumbered Assets)? A. If the labor organization answered "Yes" to Item 16, identify in Item 69 (Additional Information) all of the labor organization's assets pledged or encumbered in any way (such as those pledged as collateral for a loan) at the end of the reporting period. Also report in Item 69 their fair market value, and provide details of transactions related to the encumbrance. Q. What do I report in Item 69 (Additional Information) if I answered "Yes" to Item 17 (Contingent Liabilities)? A. If the labor organization answered "Yes" to Item 17, describe in Item 69 (Additional Information) the transactions or events resulting in the contingent liabilities and include the identity of the claimant or creditor. Contingent liabilities are potential obligations that may or may not develop into actual liabilities in the future. Examples of a contingent liability are a loan co-signed by the labor organization, or a pending lawsuit that could result in the labor organization being ordered to pay damages or make other payments. A pending administrative or judicial action is considered a contingent liability that must be reported in Item 17 if, in the opinion of legal counsel, it is reasonably possible that the labor organization will be required to make some payment. Such administrative or judicial actions must be reported as contingent liabilities regardless of whether or not the possible losses would have a materially adverse effect on the labor organization's financial condition. List in Item 69 each administrative or judicial action, including the case number, court, and caption. Q. Am I required to file the labor organization's constitution and bylaws with Form LM-2 if they were amended or changed during the reporting period? A. Yes. If the labor organization answered "Yes" to Item 18 because the labor organization's constitution and bylaws were changed during the reporting period (other than rates of dues and fees), a dated copy of the new constitution and bylaws must be submitted to OLMS with the labor organization's Form LM-2. If the labor organization is governed by a uniform or model constitution and bylaws prescribed by the labor organization's parent national or international body, the labor organization's parent body may file the constitution and bylaws on the labor organization's behalf. If the parent body files a constitution and bylaws on the labor organization's behalf, answer "Yes" to Item 18 and state that fact in Item 69 (Additional Information). If the labor organization has any supplemental governing documents or has modified a model constitution and bylaws, the labor organization must file these documents. Q. What must I do if my labor organization changed practices and procedures that are not contained in the constitution and bylaws? A. If the labor organization answered "Yes" to Item 18 because the labor organization changed any of the practices/procedures listed below during the reporting period and the practices/procedures are not described in the labor organization's constitution or bylaws, the labor organization must file an amended Form LM-1 (Labor Organization Information Report) to update information on file with the Department:
Q. Are unions composed solely of federal government employees required to file an amended Form LM-1 to report changed practices and procedures? A. No. Federal employee labor organizations subject solely to the Civil Service Reform Act or the Foreign Service Act are not required to submit an amended Form LM-1 to describe revised or changed practices/procedures. Q. What do I report in Item 19 (Next Regular Election)? A. Enter the month and year of the labor organization's next regular election of general officers (president, vice president, treasurer, secretary, etc.). Do not report the date of any interim election to fill vacancies. Q. What do I report in Item 20 (Number of Members)? A. Enter the total reported on Line 8, Column (B) of Schedule 13 (Membership Status). Q. How does the LMRDA define "member"? A. Section 3(o) of the LMRDA (29 USC 401) states that a "member" or "member in good standing", when used in reference to a labor organization, includes any person who has fulfilled the requirements for membership in such organization, and who neither has voluntarily withdrawn from membership nor has been expelled or suspended from membership after appropriate proceedings consistent with lawful provisions of the constitution and bylaws of the organization. Q. Should Item 20 (Number of Members) on a terminal report on the revised Form LM-2 of a union that has merged into another labor organization be "0" or the number of members at the end of the period? A. Report the total number of members at the end of the reporting period. Ordinarily, the number will be "0," as the reporting period for a terminal report extends to the date the union has been dissolved, disbanded or merged with another organization, but if the union still retained members as of the closing date of the terminal report, these members should be reported in Item 20, and Schedule 13. Q. What do I report in Item 21(Dues and Fees)? A. Enter the dues and fees established by the labor organization. If more than one rate applies, enter the minimum and maximum rates. Enter "None" where appropriate. Line (a): Enter the regular dues, fees or other periodic payments that a member must pay to be in good standing in the labor organization, including the calendar basis for the payment (per month, per year, etc.). Include only the dues or fees of regular members and not dues or fees of members with special rates, such as apprentices, retirees, or unemployed members. Line (b) If individuals covered by your organization's collective bargaining agreement(s) pay "working" dues in addition to their regular dues, enter the amount or percent of "working" dues, including the basis for the payment (per hour, per month, etc.). Line (c): Enter the initiation fees required from new members. Line (d): Enter the fees other than dues required from transferred members. Such fees are those charged to persons applying for a transfer of membership to the labor organization from another labor organization with the same affiliation. Do not report fees charged to members transferring from one class of membership to another within the labor organization. Line (e): If the labor organization issues work permits, enter the fees required and enter the calendar basis for the payment (per month, per year, etc.). Work permit fees are fees charged to nonmembers of the labor organization who work within its jurisdiction. Do not report as work permit fees those fees charged to nonmember applicants for membership pending acceptance of their membership application, or fees charged to persons applying for transfer of membership to the labor organization pending acceptance of their application for transfer. Last Updated: 03/23/07
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