News Release
ESA News Release: [09/27/2006]
Contact Name: David James
Phone Number: (202) 693-4676
Release
Number: 06-1698-NAT
Form T-1 Improves Disclosure and Increases Union Transparency
WASHINGTON The U.S. Department of Labor will publish in Friday's Federal Register a final rule that enhances union trust reporting and provides members with more complete information about their union's finances. Last year, the District of Columbia Circuit Court confirmed the Department of Labor's authority to disclose such information, but said the department's rule issued in 2003 was too broad. The new rule makes revisions that comply with the court's direction.
"The revised rule builds on the administration's commitment to transparency and accountability for corporations, pension funds and labor unions," said Victoria A. Lipnic, assistant secretary for the Employment Standards Administration. "The rule achieves the statutory goal of providing union members with important information about the financial operations of their unions, empowering union members to direct how their union dues are spent."
Under the Labor Management Reporting and Disclosure Act (LMRDA), the Department of Labor has the authority to require certain trust fund reporting. The new rule will require labor organizations with total annual receipts of $250,000 or more to file a Form T-1 annually for each trust to which they contribute money or otherwise hold an interest, provided the affected trust is of the type defined by section 3(l) of the LMRDA, and a number of conditions are met:
Certain trusts are excluded from the Form T-1 reporting requirement, if they report under other disclosure laws, or if an independent audit of the trust was filed with the Office of Labor Management Standards (OLMS).
The rule will be effective Jan. 1, 2007; however, no labor organization will be required to file a Form T-1 until 90 days after the conclusion of its first fiscal year that begins on or after Jan. 1, 2007. Compliance assistance is available in the form of Web-based products at www.olms.dol.gov and compliance seminars will be offered by the national and field offices of OLMS.
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