Olms interpretative Manual


FILINGOFAPPLICATIONBYMEMBER


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FILINGOFAPPLICATIONBYMEMBER


492.051SEE 29CFR417.3


COMPLAINT—WHEREREMOVALPROCEDUREADEQUATEBUTVIOLATED


493.055– Deleted December 2018


UNIONSAFEGUARDS





500-509

(NumbersReserved)

510

FiduciaryResponsibilityofOfficers andOthers

511

(NumberReserved)

512

ProprietyofExpenditure

513

(NumberReserved)

514

ExculpatoryProvisions

515

SuitforAccounting orRelief

516

(NumberReserved)

517

CourtMust Grant Leaveto Sue

518

CounselFees and Expenses

519-525

(NumbersReserved)

530

Bonding In General

531

WhoMust Be BondedIn General

531.100

WhoMustBeBonded:“Person”

531.200

WhoMustBeBonded:“Duties”

531.300

WhoMustBeBonded:“LaborOrganization”

531.400

WhoMustBe Bonded:“TrustinWhicha LaborOrganization isInterested”

531.500

WhoMustBeBonded:“Funds”

531.600

WhoMustBeBonded:“Handled”

531.700

WhoMustBeBonded:“Exclusions”

532

AmountofBond—Term ofBond

533

TypeofBond: Honesty

534

FormofBond:Individual orScheduleDesignation ofInsured

535

ApprovedSurety

536

ConflictofInterest—Bonding

537

PaymentofPremium

538-539

(NumbersReserved)

540

ProhibitionsAgainstCertain FinancialAid toOfficers

541

UnionLoans, Director Indirect

542-549

(NumbersReserved)

550

ProhibitionAgainstHoldingOfficeorEmployment

551

ProhibitionAgainstCommunists

552

ProhibitionAgainst Convicts

553

CrimesCoveredby Section504

554-579

(NumbersReserved)

580

EmbezzlementandOtherCriminalConversions

581-599

(NumbersReserved)

FIDUCIARYRESPONSIBILITYOF OFFICERSANDOTHERS



    1. LMRDA,SECTION501(a)

The officers, agents, shop stewards, and other representatives of a labor organization occupypositionsof trustin relation tosuch organization and its membersas a group.





    1. LMRDASECTION501(a)INVESTIGATIVEPOLICYSTATEMENT

TheSecretaryof Laborhas theauthority undersection 601(a)oftheLMRDAto investigate"when[s]he believes it necessary in order to determine whether any person has violated or is about toviolateanyprovisions ofthisAct (excepttitleIoramendmentsmade bythisAct tootherstatutes).


.. ."Section601(a) alsoprovidesthat"The Secretary mayreport tointerested personsorofficialsconcerning . . . any matter which [s]he deems to be appropriate as a result of such aninvestigation."

Therefore,itisthepolicyoftheOfficeofLabor-Management Standards(OLMS)toinvestigate,atitsdiscretion,allegationsofviolationsbyunionofficersandotherrepresentativesoftheirfiduciary responsibilities under section 501(a) of the LMRDA. The results of such investigationswillbe made known to interested persons as appropriate.


(TechnicalRevisions:Dec. 2016)


510.005PolicyStatement


BecausetheSecretaryof Labor doesnot haveauthorityto enforcesection501(a)of LMRDA, itisthe policy of this Office to refrain from giving advisory opinions on the scope of the fiduciaryobligations set forth in section 501(a) and the procedure for enforcement set forth in section501(b).


In appropriate instances the cases set forth below may be referred to, without comment, to callattentionto theconflictingcourt decisionson thescope ofthe fiduciaryresponsibilitiesofunionofficers.


The U.S. Circuit Court of Appeals, Second Circuit, in the cases of Guarnacciav.Kenin, 234F.Supp. 429, 57 LRRM 2310 (S.D.N.Y.), aff’dsub nom.;Gurtonv. Arons, 339 F.2d 371, 58LRRM 2080 (2d Cir. 1964); and Colemanv. Brotherhood of Railway and Steamship Clerks, 228F.Supp.276, 55 LRRM3002 (S.D.N.Y. 1964), aff’d,340 F.2d 206,58 LRRM 2220 (2dCir.


1965), held that section 501(a) applied to fiduciary responsibility with respect to money andproperty of a union and did not give the courts broad power to interfere with the internal affairs ofunions.See alsoTrustees of Operative Plasterers’ and Cement Masons’ Local Union Officers andEmployees Pension Fundv. Journeymen Plasterers’ Protective & Benevolent Society, LocalUnionNo. 5, 794 F.2d 1217, 123 LRRM 2796 (7th Cir. 1986).

TheU.S.Circuit Courtof Appeals,Eighth Circuit,onthe otherhand, inaffirming thelowercourtdecision requiring union officers to pay legal fees incurred by certain union members inmaintaining a law suit which had been authorized by a vote of the membership, took the contraryview.SeeNelsonv. Johnson,212 F.Supp. 233 (D. Minn. 1963),aff’dsub nom.,Johnsonv.


Nelson, 325 F.2d 646, 55 LRRM 2060 (8th Cir. 1963). The Eighth Circuit Court of Appeals heldthat section 501 imposes fiduciary responsibility in its broadest application and is not confined inits scope to union officials only in their handling of money and property affairs of the labororganization.Nelson, 325F.2d. at 651.SeealsoAirLine Pilots AssociationInternationalv.
TransStatesAirlines,638F.3d572(8thCir.2011);Stellingv.IBEW InternationalBrotherhoodof Electrical Workers Local Union No.1547, 587 F.2d 1379 (9th Cir. 1978), cert. deniedsub nom.,Darbyv. International Brotherhood of Electrical Workers, Local Union No.1547, 442 US 944(1979),reh’gdenied,444U.S.889(1979); Pignottiv.LocalNo.3SheetMetalWorkers’Intern.
Ass’n,477 F.2d 825(8thCir. 1973);Sabolskyv.Budzanoski,457 F.2d 124579 LRRM 2993(3d
Cir. 1972).

(Revised:Jan.2021;Technical Revisions:Dec.2016)





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