Olms interpretative Manual

WHOMUSTBE BONDEDINGENERAL

531.001LMRDA, SECTION502(a)

Every officer, agent, shop steward, or other representative or employee of any labororganization (other than a labor organization whose property and annual financial receipts do notexceed $5,000 in value), or of a trust in which a labor organization is interested, who handlesfunds or other property thereof shall be bonded... Any person who is not covered by such bondsshallnotbepermittedtoreceive,handle,disburse,orotherwiseexercise custodyorcontrolof thefunds or other property of a labor organization or of a trust in which a labor organization isinterested ...

531.002SEE 29 CFR453.2to 453.11, 453.25

WHOMUSTBEBONDED:“PERSON”

531.102SEE 29 CFR453.22, 453.23

531. 105 OFFICERS AND EMPLOYEES OF UNIONSee 29 CFR453.5

531.130CHECKSIGNERS AND ALTERNATES

Achairmanofaboardoftrusteesandasecretary-treasurermustbebondedundertheActwhen they have the authority to countersign checks, vouchers, or drafts on the funds of the labororganization.(See 29 CFR 453.8(e).)It would also be necessary to bond any alternates to thesetwo officials if the alternates perform the same functions in the absence of the chairman or thesecretary-treasurer.

531.140$5,000 EXEMPTION

29 CFR Section 453.8(a) points out that the Act does not provide an exemption based uponthe amount of fund or other property handled by particular personnel.The statutory $5,000exemption applies only to the case of unionswhose property and annual financial receipts do notexceed this amount.Therefore, if the provisions of section 502(a) of the Act are otherwiseapplicable to a particular person, the amount of funds handled by him will not affect thisapplicability.

(TechnicalRevisions:Dec. 2016)

531.150“HANDLING”COLLECTIONOFDUESBYSHOPSTEWARDSANDBUSINESS REPRESENTATIVES

Inaccordancewiththeprinciplessetforthin29CFR 453.8(c),shopstewardsandbusinessrepresentatives who personally collect dues from members are normally required to be bondedunder theAct.

(TechnicalRevision: Dec. 2019)

531.152COLLECTIONOF WORKINGASSESSMENTBY ONENOTBONDED

Itwouldnot beimproperunder theAct foraunion memberwho isnotbonded tobring

another member’s working assessments to the financial secretary as a personal favor, as long as itisnot a formal collection but simply a friendly gesture onthe part of a co-worker.

531.160PRIVATECOLLECTIONAGENCY

Astore owner,who actsasagent foralabor organization inthe collectionof dues,mustbebonded for the monies so collected.Likewise, employees of the store owner who engage in thephysical collection of such dues would also have to be bonded based on the amount collected bythem.

531.170EMPLOYERWHOCHECKSOFF DUES

Anemployer who checks offunion dues isnotrequiredtobebonded by section502.

Section502appliesonlytoan“officer,agent, shopstewardorother representative”ortoan
“employee” of a labor organization or of a trust in which a labor organization is interested.Theterm “officer, agent, shop steward or other representative” when used with respect to labororganizations is defined by section 3(q) as including “elected officials and key administrativepersonnel, whether elected or appointed (such as business agents, heads of departments or majorunits, and organizers . . .).”Even if the sums withheld by checkoff were deemed to be funds oftheunion,theemployer would notbe withinthescope of thisdefinition.Thefunds withheld are
notfundsof atrustin whicha labororganizationis interestedwithin thedefinitionof thatterminsection 3(1).Even if they were, the employer would not be an “officer, agent, shop steward orotherrepresentative oremployee” of suchtrust.

531.172BONDINGOFEMPLOYERS—REQUIREMENTINCOLLECTIVEBARGAININGAGREEMENT

While the Act includes a section which requires the bonding of certain union officers andemployees and officers and employees of trusts in which a labor organization has an interest, theAct does not require an employer to be bonded in order to guarantee the collection of dues under acollectivebargaining agreement provision.