DOL Reduces Required Conflict of Interest Disclosures for Union Officers and Employees | Practical Law

DOL Reduces Required Conflict of Interest Disclosures for Union Officers and Employees | Practical Law

On October 25, 2011, the Department of Labor (DOL) revised Form LM-30, reducing the categories of people who must file and the types of financial transactions and financial interests that union officers and employees must report. The Form LM-30 is used to determine whether there is a possible confict of interest between an individual's financial interests and that of the union and its members.

DOL Reduces Required Conflict of Interest Disclosures for Union Officers and Employees

by PLC Labor & Employment
Published on 26 Oct 2011 • USA (National/Federal)
On October 25, 2011, the Department of Labor (DOL) revised Form LM-30, reducing the categories of people who must file and the types of financial transactions and financial interests that union officers and employees must report. The Form LM-30 is used to determine whether there is a possible confict of interest between an individual's financial interests and that of the union and its members.
On October 25, 2011, the DOL revised Form LM-30 Labor Organization Officer and Employee Report and its instructions, reducing:
  • The categories of people who must file the form.
  • The types of financial transactions that union officers and employees must publicly disclose as potential or actual conflicts of interest.
Forms LM-30 now generally reveal less about the financial dealings of unions and their agents than they had since 2007, when the DOL increased Form LM-30's disclosure requirements.
The principal revisions include:
  • Union shop stewards are generally no longer required to file Form LM-30.
  • Union officials and employees, who are also employees of the employer, no longer must report payments they received for work they did for the union on employer time.
  • Union officials and employees no longer must report:
    • bona fide financial transactions with credit institutions including loans;
    • payments they receive from employers in competition with the represented employer, absent an actual or likely conflict; and
    • payments from unions and their trust funds.
  • Employees of international, national and intermediate unions who exercise "significant authority or influence" over a subordinate union must report potential conflicts of interests with those unions. Officials of such higher-level unions continue to have this reporting obligation.
The rule revising the form and its instructions, as well as copies of the revised form and instructions were published in the Federal Register on October 26, 2011. LM-30 filers must use the new form for filings on or after January 1, 2012. For filings before January 1, 2012, the DOL will accept either the revised Form LM-30, the pre-2007 form LM-30 or the 2007 Form LM-30.
Although the modifications to the LM-30 generally reduce the amount and types of information that union officials and employees must disclose, these forms still identify potential and actual conflicts of interests for union officials and employees. Employers may benefit from knowing about these conflicts and potential conflicts especially if they:
  • Do business with their unions.
  • Bargain collectively with their unions.
  • Are the subject of an organizing campaign by their unions.
Interested employers should also consider reviewing other public disclosures and financial reports by unions and their agents required under the Labor-Management Reporting and Disclosure Act of 1959. These filings are available to print or order from the DOL at the Office of Labor-Management Standards' website.