Olms interpretative Manual

PAYMENTS EXCEPTED UNDER TAFT-HARTLEY:REGULARWAGEEXCEPTION

253.301LMRA,SECTION302(c)(1)

. . . or to any representative of his employees, or to any officer or employee of a labororganization, who is also an employee or former employee of such employer, as compensationfor,or by reason of,his serviceas an employeeof suchemployer; .. .

253.305EXCEPTIONFORREGULARPAYMENTSTOEMPLOYEES

The explanation and instructions in the form for the Employer Report set forth that certainpayments are not required to be reported under section 203(a) unless the Secretary, in particularcases, requires the submission of a special report thereon.Among the payments not required tobereportedare:

Payments made to any regular employee as wages or other compensation for service as aregular employee of the employer, or by reason of his service as an employee of suchemployer, for periods during regular working hours in which such employee engages inactivities other than productive work, if the payments for such periods of time are: (1)required by law or a bona fide collective bargaining agreement, or (2) made pursuant to acustom or practice under such a collective agreement, or (3) made pursuant to a policy,custom, or practice with respect to employment in the establishment which the employer hasadopted without regard to any holding by such employee of a position with a labororganization.

Part A, FormLM-10

But see Manual Entries 254.100, 255.200 and 266.100.(TechnicalRevisions:Dec.2016)

253.320CHIEFSTEWARD’SPAY

When a chief steward performs no productive work for the company during the regularlyscheduled 40 hour work week, and the amount of payment is based upon the job classificationheld prior to his election as chief steward, and such payments are made pursuant to practices oflong standing established in conjunction with collective bargaining agreements, such paymentswould fall within the exception (c) of the exclusions listed in the instructions for Question 8A,PartA, of FormLM-10, and thus wouldnot need to be reported.

(Technical Revisions: Dec. 2016)253.321

An employee who is paid at the rate of a forty-hour productive week, but whose entirefunction is that of a chief steward who hears and investigates grievances, would not need to havepaymentsto himreported under section 203(a) of the Act.

253.322RELEASEDTIMEPAYMENTS

Pursuant to a collective bargaining agreement with the employer, wages are to be paid thepresident of a local labor organization in his capacity as “chief steward.”As such, his activitiesperformed on company time consist of the investigation of grievances and their processing.Theofficer in question does not handle other union business during his period of employment withthe employer.Under such circumstances, no report of payments made to the officer is requiredof the employer on Form LM-10, exception (c) of the exclusions listed in the instructions forQuestion 8A, Part A and no report need be filed by the union officer pursuant to section 202 oftheAct(seesection302(c),LMRA,1947,asamended).

(TechnicalRevisions:Dec.2016)

253.330PAYMENTFORDEFERREDVACATION

A bus driver for the X Tramway Corporation was elected to the office of Division Presidentof one of the divisions of his union.He took a leave of absence from the corporation as ofJanuary 1, 1963 to devote full time to his new duties.He now raises a question concerning thereport ability of a payment by the corporation to him of $268.00 which he earned in 1962 under acorporation policy which allows employees to draw vacation pay for vacation earned but nottaken during the previous year.The money thus accumulated is not paid to the employee untilthenextcalendaryear.

Since the payment in question is a payment by an employer to a union officer, it wouldconstitute a violation of section 302(a) of LMRA unless it can be considered to come within oneof the exceptions contained in section 302(c) thereof.Section 302(c) states that the provisions ofsection 302 shall notbe applicabletoanymoney payable byanemployer toanyofficer of alabor organization who is also an employee or former employee of such employer “ascompensation for, or by reason of his service as an employee of such employer.”Since itappears to have been the policy of the employer in this case to allow allemployees to take amoney payment in lieu of a vacation, the payment to the Division President appears to comewithin the terms of section 302(c) (1) and is therefore exempted from the reporting requirementsofsection202(a) (6)andsection203(a) (1)by thetermsof those sections.

253.340INCENTIVEPLANPAYMENTS

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 come within the purview ofsection 302(c) (1) of LMRA and would therefore not be reportable by the employer undersection203(a)(1)ofLMRDAintheabsenceofotherfactors.Similarly,suchpaymentswouldnotbereportablebytheunionofficer-employeeswho receivedsuchadditional compensation.

253.350CHRISTMASBONUSES

Christmas bonuses which are based on a certain percentage of earnings, and which arepayable on a uniform basis to all employees without regard to their relationship to a union ortheir status therein, fall within exceptions provided in section 203(a)(1)(B) of the LMRDA(section302(c)(1)oftheLMRA).

(TechnicalRevisions:Dec.2016)

253.360 GROUP INSURANCE

Under collective bargaining agreements where an employee selected to represent the union isgranted leave of absence without pay for this purpose and during this leave the employee’s rightsare preserved for him, including the provision for group insurance for the employee and hisdependents in the same amount and in the same manner as is provided for active employees, noLM-10 report is required with regard to these payments pursuant to section 203(a) of theLMRDA.

(TechnicalRevisions:Dec.2016)