The U.S. Department of Labor has finally issued some guidance on contractor's obligation to file the Form LM-10 required under the federal Labor Management Reporting and Disclosure Act. This provision should be considered fully in effect now that DoL has spelled out compliance procedures.
These forms essentially require that most financial payments, loans, or gifts, made by an employer to any union, union official, or employee of the union above the custodial and clerical levels, must be disclosed. These include cash payments, as well as "other things of value" such as trips, greens fees for a round of golf, the value of meals purchased for the individual at meetings, or the pro rata value of food and drinks at a company party or reception.
The purpose of the law is to identify potential conflicts of interest. Unions, union officials and union employees must file the Form LM-30 to report that such payments have been received and employers must file the LM-10s indicating that they made the payment. The term "employer" includes contractors, as well as associations of employers, such as NECA chapters, and trust funds if the trust funds directly employ anyone. However, any payment received from the trust fund by a union official or employee, including meals or refreshments at a trust meeting or the reimbursement of travel expenses, would still have to be reported by that union official or employee. (There is no reporting requirement for management trustees.)
For additional information visit the following websites:
www.dol.gov/esa/regs/compliance/olms/lm10_advisory.htm
www.necanet.org/whats_new/report.cfm?ID=2998
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