U.S. Department of Labor Office of Labor-Management Standards (OLMS)

1. Filing Revised Form LM-30 An Overview of Union Officer and Employee Reporting U.S. Department of LaborOffice of Labor-Management Standards(OLMS)

2. NOTE • This presentation is about revised Form LM-30, Labor Organization Officer and Employee Report, which is the required form for reports covering a labor organization official’s fiscal year beginning August 16, 2007 and thereafter. Reports covering fiscal years beginning before that date may be filed on the current Form LM-30. • This presentation, with very minor editorial changes, is the same as the presentation at an October 9, 2007 public seminar at the Department of Labor.

3. Introduction The Labor-Management Reporting and Disclosure Act (LMRDA) requires union officers and certainemployees to file a report annually with the Department of Labor’s Office of Labor-Management Standards (OLMS) if during the year, they, their spouse, or their minor child (under age 21) received gifts or payments from, engaged in certain activities with, or had certain financial interests involving: • Employers whose employees their union represents • Certain other employers • A business that deals in substantial part with employers whose employees their union represents • A business that deals with their union or with a trust in which their union is interested

4. Clerical or Custodial Employees • Employees who perform exclusively clerical or custodial functions do not have to file a Form LM-30. • Clerical functions are those involving typing, filing, data entry, note-taking, or similar duties lacking decision-making authority. • Custodial functions are those associated with janitorial or routine maintenance tasks.

5. Payments from Represented Employers 1. Union officers or employees must file a Form LM-30 if they or their spouse or minor child had any of the following interests or dealings related to an employer whose employees their union represents or is actively seeking to represent: - Held any stock, bond, security or other interest in such an employer;

6. Payments (cont.) - Derived any income or any other benefit with monetary value (including reimbursed expenses) from such an employer (except for payments and benefits as a bona fide employee of the employer) - Received a loan from, or made a loan to, such an employer; - Engaged in any other business transaction or arrangement with such an employer that was not a purchase or sale of goods or services in the regular course of business at prices generally available to any employee of the employer.

7. Exceptions to Reporting Exceptions to the Reporting Requirements Relating to a Represented Employer Holdings of, transactions in, or income from, bona fide investments in (1) securities traded on a securities exchange registered as a national securities exchange under the Securities Exchange Act of 1934 (e.g. the New York Stock Exchange, NASDAQ, etc.), (2) shares in an investment company registered under the Investment Company Act of 1940, or (3) securities of a public utility holding company registered under the Public Utility Holding Company Act of 1935 do not have to be reported.

8. Exceptions to Reporting Holdings of, transactions in, or income from, bona fide investments in other securities that are of insubstantial value or amount and occur under terms unrelated to the official’s status in a labor organization do not have to be reported. Holdings or transactions involving $1,000 or less and receipt of income of $100 or less in any one security are considered insubstantial.

9. De Minimis Exception Payments or gifts totaling $250 or less from any one source do not have to be reported (payments or gifts valued at $20 or less do not need to be included in determining whether the $250 threshold has been met).

10. Widely Attended Gatherings • You do not have to report the benefits, such as food and entertainment, that you receive while in attendance at one or two widely attended gatherings in a single fiscal year for which an employer or business has spent $125 or less per attendee per gathering. • A gathering is widely attended if a large number of people are in attendance and the attendees include union officials and a substantial number of individuals with no relationship to a union or to a section 3(l) trust of the union.

11. Widely Attended Gatherings (cont.) • You do not have to include the value of these gatherings in determining whether the $250 threshold has been met for the employer or business providing the event. • If you attend more than two such events provided by an employer or business, you must count the value of each event. • If the benefit for a single event exceeds $125, you must include the value of the event in determining whether the $250 threshold has been met.

12. Financial Institutions That Are Represented Employers • Credit card transactions (including unpaid balances) and • Interest and dividends paid on savings accounts, checking accounts, and certificates of deposit Do not have to be reported if the payments and transactions are based upon the institution’s own criteria and made on terms unrelated to the official’s status in the labor organization

13. Bona Fide Employee Payments and benefits received as a bona fide employee of the employer do not have to be reported.

14. Are Union Stewards Considered to be Union Employees? For purposes of Form LM-30, stewards receiving union leave/no-docking payments from an employer or lost time payments from a union are considered to be employees of the union.

15. Must Such Stewards File Form LM-30? No report is required if they receive 250 hours or less of union leave/no-docking or lost time payments Unless the union leave/no docking payments are not made pursuant to a collective bargaining agreement.

16. Payments Not Made Under a Collective Bargaining Agreement Union leave/no-docking payments must be reported if they are not made under a collective bargaining agreement, but if they are for 250 hours or less, the steward does not have to report anything else on Form LM-30.

17. Payments for More Than 250 Hours A steward who receives more than a total of 250 hours of union leave/no-docking and/or lost time payments is subject to all the Form LM-30 reporting requirements. (Lost time payments from the union are not required to be reported.)

18. Other Employers 2. Union officers or employees must file a Form LM-30 if they or their spouse or minor child received any payment of money or other thing of value from an employer or a labor relations consultant for an employer that: - is in competition with an employer whose employees their labor organization represents or is actively seeking to represent;

19. Trusts Union officials must file a Form LM-30 if they or their spouse or minor child received any payment of money or other thing of value from an employer that is “a trust in which a labor organization is interested” which is defined as a trust or other fund or organization that: Either was created by the labor organization or one or more of its trustees or governing board members were selected by the labor organization, and Has as a primary purpose providing benefits for the labor organization members or their beneficiaries.

20. Not-For-Profit Organizations Union officials must file a Form LM-30 if they or their spouse or minor child received any payment of money or other thing of value from an employer or a labor relations consultant for an employer that: - is a not-for-profit organization that receives or is actively and directly soliciting (other than by mass mail, telephone bank, or mass media) money, donations, or contributions from their labor organization.

21. Certain Labor Organizations Union officers or employees must file a Form LM-30 if they or their spouse or minor child received any payment of money or other thing of value from an employer or a labor relations consultant to an employer that: - is a labor organization that: • has employees their union represents or is actively seeking to represent, • has employees in the same occupation as those represented by their union, • claims jurisdiction over work that is also claimed by their union,

22. Labor Organizations (cont.) - is a labor organization that: • is a party to or will be affected by any proceeding in which they have voting or policy-influencing authority, or • has made a payment to them for the purpose of influencing the outcome of an internal union election However, a report is not required for any payment from the official’s labor organization or from a labor organization affiliated with the official’s labor organization.

23. Conflicting Interests Union officials must file a Form LM-30 if they or their spouse or minor child received any payment of money or other thing of value from an employer or a labor relations consultant to such an employer that: Example: You are a union officer. An employer provides you with an all-expenses paid weekend ski trip for the purpose of discussing the union’s potential endorsement of a political candidate. You must report the value of this ski trip. - has interests in actual or potential conflict with the interests of their labor organization or their duties to their labor organization.

24. Exceptions to Reporting Exceptions to the Requirements Just Discussed Relating to Certain Employers Union officials are not required to report: Payments of the kinds referred to in Labor Management Relations Act (LMRA) Section 302(c), and payments their spouse or minor child receive by reason of their service to such an employer. For example, these payments are not reportable: • Any money or other thing of value payable by an employer to: • an employee acting openly for the employer in matters of labor relations or personnel administration • Any union official who also is an employee or former employee of the employer, as compensation for or by reason of, his service as an employee of the employer; • Any money or other thing of value payable in satisfaction of a judgment, arbitral award, settlement or release of any claim in the absence of fraud or duress; • The sale or purchase of an article or commodity at the prevailing market price in the regular course of business;

25. Financial Institutions Exceptions to the Reporting Requirements Relating to Certain Employers Union officials are not required to report: Bona fide loans, credit card transactions, interest or dividends from banks, credit unions, etc., if they are based upon the financial institution’s own criteria and made on terms unrelated to the individual’s status in a labor organization. The exception does not apply to financial institutions that constitute a “trust in which your labor organization is interested.”

26. Trust Fund Payments Exceptions to the Reporting Requirements Relating to Certain Other Employers or a Labor Relations Consultant to Such an Employer Union officials are not required to report: Pension, health, or other benefit payments to them, their spouse, or minor child from any trust that are provided pursuant to a written specific agreement covering such payments.

27. De Minimis Exception Union officials are not required to report: • Payments or gifts totaling $250 or less from any one source (payments or gifts valued at $20 or less do not need to be included in determining whether the $250 threshold has been met.) • One or two widely attended gatherings where they received benefits of $125 or less per gathering.

28. Payments for Improper Purposes 3. Union officers or employees must file a Form LM-30 if they or their spouse or minor children received any payments for the following purposes from any employer or a labor relations consultant for any employer: • Not to organize employees; • To influence employees with respect to their right to organize: • To take any action with respect to the status of employees or others as members of a labor organization;

29. Improper Purposes (cont.) • To take any action with respect to bargaining or dealing with employers whose employees their labor organization represents or is actively seeking to represent; • To influence the outcome of an internal union election. There are no exceptions to reporting payments received for any of these five purposes.

30. Businesses 4. Union officers or employees must file a Form LM-30 if they or their spouse or minor children held an interest in, or received any income or other benefit from a business that meets any of the following conditions: - 10 % or more of its business consists of buying or selling or otherwise dealing with an employer whose employees their labor organization represents or is actively seeking to represent; or - any part of its business consists of buying or selling or otherwise dealing with their labor organization or a trust in which their labor organization is interested.

31. Exceptions to Reporting Holdings of, transactions in, or income from, bona fide investments in (1) securities traded on a securities exchange registered as a national securities exchange under the Securities Exchange Act of 1934 (e.g. the New York Stock Exchange, NASDAQ, etc.), (2) shares in an investment company registered under the Investment Company Act of 1940, or (3) securities of a public utility holding company registered under the Public Utility Holding Company Act of 1935 do not have to be reported.

32. Exceptions to Reporting Holdings of, transactions in, or income from, bona fide investments in other securities that are of insubstantial value or amount and occur under terms unrelated to the official’s status in a labor organization do not have to be reported. Holdings or transactions involving $1,000 or less and receipt of income of $100 or less in any one security are considered insubstantial.

33. De Minimis Exemption Union officials are not required to report: • Payments or gifts totaling $250 or less from any one source (payments or gifts valued at $20 or less do not need to be included in determining whether the $250 threshold has been met.) • One or two widely attended gatherings where they received benefits of $125 or less per gathering.

34. Financial Institutions as Businesses • Credit card transactions (including unpaid balances) and • Interest and dividends paid on savings accounts, checking accounts, and certificates of deposit Do not have to be reported if the payments and transactions are based upon the institution’s own criteria and made on terms unrelated to the official’s status in the labor organization

35. Selected Definitions • Actively seeking to representmeans that a labor organization has taken steps during the labor organization officer’s or employee’s fiscal year to become the bargaining representative of the employees of an employer, including but not limited to: • Sending organizers to an employer’s facility; • Placing an individual in a position as an employee of an employer that is the subject of an organizing drive and paying that individual subsidies to assist in the labor organization’s organizing activities; • Handing out leaflets;

36. “Actively Seeking to Represent” (cont.) • Circulating a petition for representation among employees; • Soliciting employees to sign membership cards; • Demanding recognition or bargaining rights or obtaining or requesting an employer to enter into a neutrality agreement (whereby the employer agrees not to take a position for or against union representation of its employees), or otherwise committing labor or financial resources to seek representation of employees working for the employer.

37. Selected Definitions • Labor organization means the local, intermediate, or national or international labor organization that employed the official, or in which the official held office, during the reporting period, and, in the case of a national or international labor organization officer or an intermediate labor organization officer, any subordinate labor organization of the officer’s labor organization. The terms “your labor organization” and “your union” mean: a. For officers and employees of a local labor organization The local labor organization.

38. “Labor Organization” (cont.) b. For officers of an international or national labor organization The national or international labor organization and all of its affiliated intermediate bodies and all of its affiliated local labor organizations But note: A national or international union officer does not have toreport payments from or interests in businesses that deal with employers represented by, or actively being organized by, any lower level of the officer’s labor organization. Such officers are also not required to report payments and other financial benefits received by their spouse or minor child as bona fide employees of a business or employer involved with a lower level of the officer’s labor organization.

39. “Labor Organization”(cont.) • For employees of a national or international labor organization The national or international labor organization.

40. “Labor Organization” (cont.) d. For officers of intermediate bodies The intermediate body and all of its affiliated local labor organizations. But note: An officer of an intermediate body does not have to report payments from or interests in businesses that deal with employers represented by, or actively being organized by, any lower level of the officer’s labor organization. Such officers are also not required to report payments and other financial benefits received by their spouses or minor children as bona fide employees of a business or employer involved with a lower level of the officer’s labor organization.

41. “Labor Organization” (cont.) • For employees of an intermediate body The intermediate body.

42. Completing Form LM-30 Part A The first five items on the form and Item 8 (signature and verification) must be completed by all filers.

43. Completing Form LM-30 Part A The summary (Item 5) must be completed after you have completed each Part B (Schedules 1 – 4 of the form) that you are required to file.

44. Completing Form LM-30 Part A • Page 2 (Items 6 and 7) must be completed by all filers. • Item 6 lists the seven types of employers that the filer must report payments from or dealings with as discussed earlier. The filer indicates the number of employers that he or she had reported relationships with. • Item 7 lists the three types of businesses that the filer must report payments from or dealings with as discussed earlier. The filer indicates the number of businesses that he or she has reportable relationships with. • You are only required to file Form LM-30 if you answer “Yes” to Item 6a or Item 7a.

45. Completing Form LM-30 Part B (Schedules 1-4) • The filer must complete a separate Part B for every employer or business that he or she had a reportable relationship with. • Schedule 1 - Employer or Business Identifying Information.

46. Completing Form LM-30 Part B (Schedules 1- 4) • Schedule 2 - Filer’s Interest In, Payments From, or Arrangements with the Employer or Business Identified in Schedule 1 (all filers must complete)

47. Examples Examples of situations that must be reported in Schedule 2: • You are a union officer and your spouse receives a loan from an employer whose employees your union represents. The loan must be reported. • You are an officer of a district council. Your spouse owns and operates a small catering business. The council purchases catering services from your spouse’s business. You must report your spouse’s ownership interest in the catering business and the salary and reimbursed expenses that she received from the business.

48. Completing Form LM-30 Part B (Schedules 1- 4) • Schedule 3 - Employer’s Relationship with the Filer’s Labor Organization • This schedule must be completed if the entity listed in Schedule 1 is an employer. • Check the box in Part A of Schedule 3 that describes the relationship of the employer listed in Schedule 1 to your labor organization. • Provide details in Part B of the employer’s relationship with your labor organization.

49. Completing Form LM-30 Part B (Schedules 1-4) • Schedule 4 -Business’s Dealings with Filer’s Union, Trust, or an Employer Whose Employees the Filer’s Union Represents or Actively Seeks to Represent. • This schedule must be completed if the entity listed in Schedule 1 is a business. • Enter the requested information describing the dealings between the business listed in Schedule 1 and your labor organization, any trust in which your labor organization is interested, and any employer whose employees your labor organization represents or actively seeks to represent.

50. Examples Examples of situations that must be reported in Schedule 4: • You are the president of a local union and own a building, which has numerous tenants, including your local. The rental agreement between you and the union, ands its value, must be reported. • You are a union employee and your spouse owns a vending machine business a substantial part of which consists of revenue from machines placed in employee break rooms and public areas controlled by the employer. The vending agreement, and its terms, must be reported.