Olms interpretative Manual

TIME AND PLACE TO FILE UNION OFFICER AND EMPLOYEEREPORTS

242.001LMRDA,SECTION207(b)

Eachpersonrequiredtofileareportundersection201(b),202,203(a),orthesecondsentence of 203(b) shall file such report within ninety days after the end of each of its fiscalyears; except that where such person is subject to section 201(b), 202, 203(a), or the secondsentence of203(b)asthecasemaybe,foronlya portionofsuchafiscalyear(becausethedateof enactment of this Act occurs during such person’s fiscal year or such person becomes subjectto this Act during its fiscal year) such person may consider that portion as the entire fiscal year inmakingsuch report.

242.002SEE29CFR404.1,404.2

5. 
   FISCALYEAR
   

See29CFR404.1 andManualEntries214 ff.

5. 
   ELECTRONICFILING
   

Electronic Forms System (EFS) is the Office of Labor-Management Standards’ (OLMS) web-based reporting system for filing electronic reports. Specifically, the labor organizationinformation report Form LM-1, the labor organization annual Forms LM-2, LM-3, and LM-4reports, the Form LM-30 Labor Organization Officer and Employee report, the Form LM-10Employer report, and the Form LM-20 and LM-21 labor relations consultant reports can be filedelectronically. As of January 1, 2021, all of the preceding forms must be filed electronically withthe exception of the LM-30. A link to the EFS can be found athttps://www.dol.gov/agencies/olms/reports/electronic-filing.

(Jan. 2021)

BENEFITFROMEMPLOYEROFUNIONMEMBERS

243.001LMRDA,SECTION202(a)(1)

. . . any stock, bond, security, or other interest, legal or equitable, which he or his spouse orminor child directly or indirectly held in, and any income or any other benefit with monetaryvalue (including reimburse expenses) which he or his spouse or minor child derived directly orindirectly from, an employer whose employees such labor organization represents or is activelyseeking to represent, except payments and other benefits received as a bona fide employee ofsuchemployer;…

243.005PAYMENTSUNDERINCENTIVEPLAN

Payments made under an incentive plan which is contained in the collective bargainingagreement and which contemplates the payment of additional compensation to employees whothrough additional effort obtain new accounts for the employer would not be reportable by theunion officer-employees who received such additional compensation, since such payments arereceivedforworkas a bonafideemployeeofsuchemployer.

243.100COMPANYPICNIC

For many years it had been the custom of Company X to sponsor an annual picnic for itsemployees.After the company was organized by Union Y, the union decided that it would co-sponsor the picnic and share the expenses equally with the company.The cost of the picnic forthe200 employees of the company was $3,000.

No report would be required pursuant to section 202 from a union officer who attends thispicnic.Even if the union officer was not an employee of the company, the value, such as food,beverage,etc.,ofwhathereceivedthere wouldbe insignificant.
It is to be noted, however, that the Secretary of Labor may require special reports insituationsofthe nature describedaboveif hesodesires.

243.200NEGOTIATINGEXPENSES

Company A and Union B are attempting to negotiate production standards related to theoperation of new equipment.The company, through its plant officers, invites several unionrepresentatives who are employees to visit other plants of the company with a view to observingthe new equipment in operation.It was believed that when the union representatives viewed thenew equipment in operation they would have a more adequate factual basis for negotiating aproduction standard with Company A.The company paid the union representatives their regularwagesandtheiractualexpensesfortravelandhotelaccommodations(onenight’slodging).

Under these circumstances, no labor officer reports are required from the unionrepresentatives because the payment of bona fide expenses by the company in connection withcollectivebargainingandnegotiationsareconsideredtocomewithinthescopeofregularwages.
Thisprinciplewouldnotapplytoa unionofficerwhoisnotanemployeeoftheemployer.

243.300FREEACCOMMODATIONS

A union officer who received complimentary hotel accommodations from a hotel whichemployed members of the union which he represents is deemed to have received a “benefit withmonetaryvalue”withinthe meaningofsection202(a)(1)andis requiredtoreportthereon.

243.400POLITICALCONTRIBUTIONS

Where an employer contributes to the campaign fund of one of his employees who is runningfor local public office and that employee is also an officer of the labor organization whichrepresents the employees in collective bargaining with the employer, the employer is required tofile a report of the payment pursuant to section 203(a)(1) of the Act.The union officer is alsorequiredtoreportthepaymentinquestion byvirtueofsection202(a)(1).

The legality of an employer’s contributions to the campaign fund of one of the employer’semployees who is also a union officer, requires consideration of section 505 of the Act whichamends section 302 of the Labor Management Relations Act, for which the Department of Laborisnot assignedresponsibility.
Contributions by a corporation, or a labor organization to a person campaigning for Federaloffice are made criminal offenses under 52 U.S.C. 30118 (formerly cited as 2 U.S.C. 441b and18 U.S.C. 610) and it is also a crime for a candidate for a Federal office to receive suchcontributions.

(TechnicalRevisions:Dec.2016)

243.500BONAFIDEINVESTMENTS

Bona fide investments in stocks “traded on a securities exchange registered as a nationalsecurities exchange under the Securities Exchange Act of 1934" are excluded from the reportingrequirements of section 202(a) of the Act by section 202(b).For example, this exclusion doesnotapplyto:

1. 
   Stockstradedonanunregisteredexchange.
   
2. 
   Stockstradedonlyonanorganizedforeignexchange.
   

3. 
   Agiftof stock,regardlessofwherethestockistraded.
   

4. 
   Stockheldinaprivate“closed”family corporation.
   

The exclusion doesapply, however, to bona fide investments (“purchases”) made by a unionofficial in the stock of a company whose employees he represents, provided that the stock istraded on a registered exchange such as the New York Stock Exchange.Likewise, the incomefromsuchstocksisnotrequiredtobereported.

243.510STOCKSTRADEDOVERTHECOUNTER

If a union official holds stock in a corporation traded over the counter and his union has acontract with that corporation, he would be required to file a report since the reporting exemptionin section 202(b) applied only to securities traded on a securities exchange registered under theSecuritiesExchange Actof 1934.

243.511

President A of Local 100 is a regular production employee of the B Corporation.The stockofBCorporationistradedoverthecounter,thatis,itisnottradedonaregulatedexchange.
AssumethatPresidentAgothisstock,nowworth$8,000andwhichbringshimdividendincomeof $600 a year, through many years of purchases under the B Corporation stock purchase planavailable to all employees.Under section 202(a)(1) a report is required from President A.Therequirement of a report does not imply that the act or behavior or agreement to be reported isillegal.It means that the Congress decided that the reporting of the interest and public disclosureofthe report are desirablein accomplishingtheobjectivesoftheLMRDA.

(TechnicalRevisions:Dec. 2016)

243.520EMPLOYEESTOCKPURCHASEPLANS

Where an employer whose stock is traded on a national securities exchange has an employeestock purchase plan by which all employees including labor union officials who are employeesmay purchase the employer’s stock at a discount from the market price, no reports are requiredwith regard to these purchases and holding of the employer’s stock by labor organization officersforthereasonthattheycomewithintheexceptionofsection202(b)oftheActandsection302(c) of the Labor Management Relations Act, 1947, as amended (payments to a union officer“ascompensation for,orbyreasonof,hisserviceas an employee ofsuchemployer”).

243.522

An officer of a union who participates in an employee stock plan authorizing a regulardeduction from his pay check, to be applied to the purchase of government bonds, and underwhich the employer, whose employees the union represents or is actively seeking to represent,contributes one-fourth as much to buy company stock for the employee must be reported undersection 202(a)(1) and (2) of the Act, in the absence of an applicable exemption.Such a reportwould have to list and describe the officer’s holdings of, and transaction in, this stock for thepreceding fiscal year, whether acquired under the Plan or not. However, the exemption containedinsection202(b)couldapply.That sectionprovidesthat202(a)(1)and(2)shall notbeconstrued
to require any such officer or employee of a labor organization to report his bona fideinvestments in securities traded on a securities exchange registered as a national securitiesexchangeunder the Securities Exchange Actof 1934.

243.600FREEUSEOFHUNTINGLODGE

QUESTION: I am the president and business agent of my local.We have a collective bargainingagreement with the CDE Company.The CDE Company has a private lodge on a lake in theAdirondack Mountains in New York for the use of its officers.As the families of theCorporation’s officers were not using the lodge before July, I was offered the use of the facilitiesfora2weekperiodinlateJune.DoI havetoreportunderthesecircumstances?

ANSWER: Yes.This is a gift of more than nominal value and consequently is required to bereportedpursuant to section 202(a)(1) of the Act.