Office of Labor-Management Standards (OLMS)

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Major Provisions of the Final Rule

Among the major provisions of the Final Rule are the following:

• The threshold for filing a Form LM-2 has been increased to $250,000. The Form LM-3 and Form LM-4 have not been changed in any way.
• Form LM-2 must be filed electronically unless a hardship exemption is obtained from the Department.
• Certain categories of receipts and disbursements of $5,000 or more must be individually identified and reported on Form LM-2.
• Several disbursement categories from Statement B of Form LM-2 were eliminated, including Office & Administrative Expense, Education & Publicity Expense, Professional Fees, and Other Disbursements.
• Several new disbursement categories were created for Statement B of Form LM-2, including Representational Activities, Political Activities and Lobbying, General Overhead, Union Administration, and Strike Benefits.
• Form LM-2 filers must report accounts receivable and accounts payable of $5,000 or more that are more than 90 days past due at the end of the reporting period or that were liquidated, reduced or written off during the reporting period.
• Form LM-2 includes a new membership schedule in which the filer must report the categories of membership tracked by the union, including the number of members in each category and their voting eligibility.
• Form LM-2 filers must make a good faith estimate to the nearest 10% of the proportion of each officer's and employee's time spent in each of five categories on the Form LM-2 (Representational Activities; Political Activities and Lobbying; Contributions, Gifts and Grants; General Overhead; and Union Administration) and report that percentage of gross salary in the relevant schedule.
• The Final Rule adopts language clarifying that any "conference, general committee, joint or system board, or joint council" that is subordinate to a covered national or international labor organization is itself a labor organization within the meaning of section 3(j) of the LMRDA and therefore is required to file an annual financial report, consistent with the holding in Chao v. Bremerton Metal Trades Council, AFL-CIO, 294 F.3d 1114 (2002).

Last Updated: 03/23/07