PEF Convention Workshop: LM-30 Training

Presented by:  PEF Office of General Counsel

September 15, 2008

Summary of New Federal Reporting Requirements:

·        The U.S. Department of Labor has expanded the reporting requirements for Form LM-30, the form required to be filed, if the conditions explained below are satisfied.

·        This new filing requirement is aimed at identifying how much employer-paid time is spent on union business, by union stewards and local leaders (“union officials”).

·        The expanded reporting requirements stem from the Department of Labor’s redefinition of the term “labor organization employee” to include union officials who are not employed by their union, but who perform union work during their workday, and are paid for that time by their employer.

·        This redefinition increases the number of individuals who may be required to file annual reports (Form LM-30) with the Department’s Office of Labor-Management Standards (OLMS), if they meet the requirements for reporting.   

Possible Scenarios for Reporting:

·        There are three typical scenarios.  Union officials’ reporting obligations will vary depending on which situation applies to them.  Again, the expanded reporting requirement only covers employer-paid time, so if the Employee Organization Leave (“EOL”) is reimbursed by PEF to the State, then it does not count toward the 250-hour threshold, and it is not required to be reported.

·        The first two scenarios concern union officials who are granted EOL under Article 4 of the PEF/State Contract.  The following EOL is reportable and should be counted toward the 250-hour threshold:

o       Contract negotiations [Art. 4.7(c)];

o       L/M Committee meetings [Art. 4.7(c)];

o       Representing employees in the grievance procedure, including both grievance investigation and processing (as defined in the Contract’s EOL side letter) [Art. 4.7(c)];

o       The PEF Convention [Art. 4.7(b)]; and

o       PEF Executive Board and PEF Committee meetings [Art. 4.7(a) (However, as PEF reimburses the State for leave for these purposes when the total exceeds 400 days per contract year, those hours are not reportable)].

1. If the total number of Contractual EOL is 250 or fewer hours during a union official’s fiscal year, then they do not have to file Form LM-30.  The union official’s fiscal year normally runs from January 1- December 31, as it the same as their Federal tax filing year.

2. If the total number of Contractual EOL hours is over 250 hours during a union official’s fiscal year, then they are required to file Form LM-30, and report all of the hours, including the first 250 hours.

Note: Importantly, union officials who make-up work time spent on union activities within a “reasonable amount of time” are not required to count such time toward the annual 250-hour reporting threshold.  The Department of Labor has indicated it would consider the make-up of work time within the same pay period as within a “reasonable amount of time.”

3. The third scenario concerns those who are granted leave under a “local arrangement” outside of the PEF/State Contract.  This includes union-leave and no-docking arrangements established by custom, practice, and hand-shake, whether written or unwritten.  For those who have a local arrangement, the 250-hour threshold does not apply, and all employer-paid time spent on union business during the workday must be reported.

Reporting Deadline:

·        The deadline for filing is within 90 days after the end of the union official’s fiscal year, which in most cases will be March 31.  For example, the deadline for filing in the fiscal year running from January 1, 2008 – December 31, 2008 is March 31, 2009.

Individual Responsibilities and Penalties:

·        Union officials are personally responsible for filing and accuracy. 

·        They face criminal penalties for willful failure to file a required report and/or for false reporting. 

·        They are also subject to civil prosecution by the DOL for violations of the filing requirements.

Recordkeeping:

• Filers are responsible for maintaining records on the matters required to be reported in sufficient detail that the information reported can be verified and checked for accuracy and completeness, for a period of not less than 5 years after filing Form LM-30.

Public Disclosure:

• The LM-30 forms filed by union officials will be available for public viewing on the Department of Labor’s Office of Labor-Management Standard (OLMS) web site.

Recommendations:

• Our recommendation is that union officials keep a log of all time spent on union business, including the purpose of the time, and whether it was (reimbursed or unreimbursed) Contractual or local arrangement release time.  Also, we recommend that they keep a log of any make-up of work time.

Potential Ameliorating Factors:

• Outcome of the Presidential election may affect whether these reporting requirements are continued.
• Outcome of pending AFL-CIO lawsuit challenging these new regulations.

Conclusion:

The PEF Office of General Counsel will continue to monitor this situation and apprise of changes and developments.