Overtime pay matters to 

American workers and their 

families, and since August 

23rd, millions more of them 

have gained overtime rights. 

Until now, outdated regulations left millions of workers without the guaranteed 

overtime protections they 

deserve. Now, after more 

than two years of 

careful deliberation 

with extensive input from the public, the Department 

of Labor’s reforms 

to white collar 

overtime regulations are taking 

effect. 

Although overtime 

regulations can be 

a very complicated 

subject, the basics 

of the new reforms are 

quite simple. 

6.7 Million Workers To 

Benefit 

Under the old, outdated 

regulations, workers 

earning as little as $8,060 

or $155 per week could 

be denied overtime. The 

new rule nearly triples 

this salary threshold, so 

that workers earning less 

than $23,660 or $455 per 

week are guaranteed overtime protection no matter 

what they do or what their 

job title is. A number of 

salaried workers earning 

above this threshold will 

also gain the right to overtime under the new, 

stronger rule. This 

strengthens overtime 

protections for 6.7 million salaried workers, 

including 1.3 million 

low-wage salaried white 

collar workers who were 

not entitled to overtime 

pay under the previous 

regulations. Businesses 

will have to pay an additional $375 million and 

workers will gain that 

amount in additional 

(Continued on page 2) 

Volume 1, Issue 2 

Overtime Rights Stronger Than Ever 

Summer 2004 

HERE Receives Hispanic 

Initiative Grant 

2 

Skilled Trades Initiative 3 

SIU-Crewed Vessel Tour 3 

UTU Presidents 

Sentenced To Jail 

3 

Union Transparency 

Reform 

4 

Retirement Security 4 

National Maritime Day 

Observance 

5 

Inside this issue: 

The Labor Advocate 

The Labor Community’s Source for Department of Labor News 

Plumbers’ Pension Fund Trustees Removed 

The U.S. Department of 

Labor filed a consent order 

on Aug. 2, 2004, ousting 

four trustees from the 

board of the Plumbers 

and Pipefitters National 

Pension Fund and requiring them to pay $10.98 

million in restitution and 

civil penalties in connection with the imprudent 

management of the fund’s 

investment in the Diplomat 

Resort and Country Club in 

Hollywood, Florida. 

The settlement resolves 

allegations against pension 

trustees Martin J. Maddaloni, President of the 

(Continued on page 2) 

Strong Economic News 

• 328,000 new jobs created 

(Aug.-Nov. 2003) 

• Most robust four-month 

job growth record since 

Sept.-Dec. 2000 

• Gross Domestic Product 

(GDP) increased at an 

annual rate of 8.2% in the 

third quarter of 2003, the 

fastest pace since 1984 

• Construction gained 

10,000 jobs in Nov. 

2003, the ninth consecutive increase 

• Construction has gained 

156,000 jobs from Feb.-

Nov. 2003 

Strong Economic News 

(July 2004 Data) 

• 11 straight months of job 

gains 

• 1.5 million new jobs created since August 2003 

• The national unemployment rate has declined to 

5.5% - down 0.8% from a 

peak of 6.3% in June 2003 

and the lowest rate since 

October 2001 

• The 5.5% unemployment 

rate is below the average 

of the 1970s, 1980s, and 

1990s 

• The manufacturing sector 

has added 91,000 jobs 

since its low in Jan. 2004 

Hotline: 

(866) 444-3272 

To report fraud 

in your private-sector 

pension and health plans 

Secretary Chao speaks to the Fraternal Order of Police 

about the new overtime security rules and how first responders are protected. (DOL Photo) 
earnings every year. 

Explicit Guarantees for Workers 

The new overtime security rule, for 

the first time, also offers explicit 

guarantees of overtime protection to 

blue collar workers like carpenters, 

electricians, mechanics, plumbers, 

iron workers, operating engineers, 

longshoremen, and laborers, as well 

as workers who receive overtime 

under a union contract. Licensed 

practical nurses and first responders, 

such as police officers, fire fighters 

and EMTs also receive greater protection under the new regulations. 

Any worker paid on an hourly basis 

will continue to be guaranteed over-

(Continued from page 1) time pay no matter how much they 

earn, what job they perform, or what 

title they hold. 

Clarity in Overtime Rules 

Because the old regulations hadn’t been 

changed in decades, they were difficult 

to understand and apply in today’s 

economy, meaning that it was often 

impossible to determine who should or 

should not receive overtime. The result 

was an explosion in lawsuits. The new 

rule, by contrast, is significantly shorter 

in length, based on the realities of today’s workplaces, and incorporate current court decisions to make it much 

easier to determine overtime eligibility. 

This new clarity means that workers 

won’t have to resort to the courts to get 

the overtime they deserve and employrupt refrigerant manufacturing corporation; and Patrick Perno, administrative 

assistant to the general president of the 

Plumbers union. 

In addition to paying restitution, Maddaloni and Patchell have permanently resigned their positions as trustees for the 

fund and the six other ERISA-covered 

plans they currently serve as fiduciaries. 

United Association of Journeymen 

and Apprentices of the Plumbing and 

Pipefitters Industry of the United 

States and Canada; Thomas Patchell, 

General Secretary-Treasurer of the 

Plumbers union; Charles H. Carlson, 

former Chairman of Industrial Piping 

Company; James A. House, part 

owner of, J.A. House, Inc., a bank-

(Continued from page 1) Carlson and House have resigned permanently as trustees. Perno, who became a trustee after the project was 

initiated, may continue to serve as a 

trustee of the fund, but will recuse himself from any decision concerning the 

investment of the assets until Dec. 31, 

2006. The federal district court in Ft. 

Lauderdale, Florida must approve the 

settlement. 

HERE Receives Hispanic Initiative Grant 

...Overtime Rights Strengthened 

...Plumbers’ Union Trustees Ousted 

Secretary Chao stated, “The Department’s National Hispanic Worker 

Initiative will help our country’s 

Hispanic workers prepare for and 

find good paying jobs in high growth 

sectors. Today’s grant of $1.9 million to HERE will help more than 

2,000 Hispanic workers in the hospitality industry to receive needed 

training in language and occupational skills.” 

Secretary Chao announced a National Hispanic Worker Initiative and 

awarded the first grant of almost $1.9 

million to the Hotel Employees and 

Restaurant Employees International 

Union. HERE will use the grant to 

train Hispanic workers and other immigrant workers through their HiDemand Program for hospitality industry jobs in Las Vegas, Nevada and 

Atlantic City, New Jersey. 

VOLUME 1, ISSUE 2 THE LABOR ADVOCATE PAGE 2 

ers can devote money to building their 

businesses and paying workers, instead of 

enriching lawyers. 

Overtime Rules Have Needed Updating 

for Decades 

Every administration since President 

Jimmy Carter has recognized the need for 

updating the overtime rule, but special 

interest politics and partisan gridlock have 

always won out-until now. The new 

overtime security rule restores overtime 

rights, provides more protection to workers, and allows employers to dedicate 

money to their employees and businesses 

instead of lawsuits. 

The new rule is now in effect. For information from the agency that enforces the 

rule, log on to www.dol.gov/fairpay.

Secretary Chao presents a facsimile grant check to HERE President John Wilhelm in Las Vegas while members of the Culinary 

Training Academy look on. (DOL Photo) 
With a shortage of workers expected over the next ten years in 

many of the skilled trades, U.S. 

Secretary of Labor Elaine L. 

Chao has joined a diverse group 

of partners from organized labor 

and industry to launch the Skills 

to Build America’s Future initiative. 

Skills to Build America’s Future 

is a nationwide outreach and 

education effort designed to attract young people and transitioning workers to careers in the 

skilled trades and to address the 

growing need for workers in America’s construction industry. 

Secretary Chao noted that “today 

we need the skills and talents of 

a new generation of skilled 

tradesmen and women. Over 

the next few years many jobs 

will be created in the skilled 

trades, and even more opportunities will open up as the Baby 

Boom generation retires. The 

skilled trades offer more than 

great jobs - they also play a key 

role in building America’s future.” 

(Continued on page 4) 

Former UTU presidents Byron Boyd 

and Charles Little pled guilty to racketeering conspiracy charges involving 

a scheme to solicit and collect cash 

payments from attorneys on the union’s designated legal counsel list. 

Boyd and Little used the money to 

fund their campaigns for union president and for personal use. 

The federal judge also sentenced Ralph 

Dennis, former director of the United 

Transportation Union Insurance Association, and John Rookard, former special assistant to Boyd, to serve three 

years’ probation and forfeit $45,000 in 

proceeds. 

If you suspect financial wrongdoing in 

your union, contact the Department of 

Labor toll-free at (866) 4-USA-DOL.

Secretary Chao Tours SIU-Crewed Patriot

Skilled Trades Initiative Launched 

UTU Presidents Jailed For Kickbacks From Lawyers 

The Patriot, operated by ARC, was 

loading tractors, trucks, cars, and other 

vehicles when the tour took place. The 

ship sailed for Antwerp, Belgium later 

that day. 

This was Secretary Chao’s second time 

aboard an SIU-crewed ship. She 

toured the USNS Bellatrix in New Orleans two years ago. 

On May 26th, Secretary Chao joined 

SIU President Michael Sacco in a 

tour of the Seafarers-crewed Patriot

in the Port of Baltimore. 

Secretary Chao met the SIU crew, 

including Kyle Pillsworth, who is 

part of the new DOL-approved Seafarers apprenticeship program. 

Secretary Chao and labor leaders meet to launch the Skilled Trades 

Initiative (DOL Photo) 

VOLUME 1, ISSUE 2 THE LABOR ADVOCATE PAGE 3 

SIU President Sacco introduces Secretary Chao 

to the SIU crew on the Patriot. (SIU Photo) 

On July 9, 2004, a federal district 

court judge sentenced two former 

United Transportation Union presidents to serve two years in prison 

without parole, pay $10,000 fines, 

and forfeit $100,000 in racketeering 

proceeds. They will be supervised 

for three years after release from 

prison. This case was a result of a 

Department of Labor investigation. 
Employee Retirement Income Security Act (ERISA). Secretary Chao has launched a 

nationwide campaign to improve 

workers’ health and retirement 

security by educating employee 

representatives, employers, and 

service providers about their fiduciary responsibilities under the 

Secretary Chao stated, “Strong 

fiduciary oversight and protecting 

workers’ benefits is our highest 

priority. ‘Getting it Right,’ however, can be challenging... Today, 

we are announcing a series of edu

(Continued on page 5) 

Union Transparency Reform Rule Takes Effect 

...Addressing the Skilled Trades Gap 

Protecting Workers’ Benefits Is A Top Priority 

After receiving and reviewing more 

than 35,000 public comments, the 

Department made numerous changes 

to its initial proposed rule that will 

reduce the burden on reporting unions, exempt an additional 500 

smaller unions from having to file 

the most detailed financial report, 

and protect the legitimate privacy 

interests of union members, as well 

as the organizing strategies and other 

“trade secrets” of affected labor organizations. 

Due to changes made in the final rule 

in response to public comments, only 

the nation’s largest unions - those 

with $250,000 or more in annual receipts - will be required to itemize 

certain receipts and disbursements of 

$5,000 or more on their publicly 

available Form LM-2 annual report. 

(Continued on page 5) 

Effective July 1, 2004, the Department of Labor implemented final 

rules to strengthen the financial 

integrity and transparency of labor 

unions by improving the annual 

financial disclosure forms filed by 

the largest unions as required by 

the Labor-Management Reporting 

and Disclosure Act (LMRDA). 

VOLUME 1, ISSUE 2 THE LABOR ADVOCATE PAGE 4 

Partners in the initiative include 

the National Heavy and Highway Alliance and its affiliated 

international unions, the Construction Industry Round Table, 

and the National Association of 

Home Builders. Major League 

Baseball has also signed as a 

partner to promote the skilled 

trades. 

Many of the skilled trades are 

currently facing a shortage of 

workers and the number of peo-

(Continued from page 3) ple needed to fill these jobs is 

expected to increase dramatically 

over the next several years. Operating engineers, carpenters, 

iron workers, cement masons, 

bricklayers, truck drivers and 

many other construction-related 

crafts are among the trades expected to see the greatest demand in workers over the next 6 

years. 

For more information on the 

Skills to Build America’s Future 

initiative, log on to 

www.careervoyages.gov. 

Skilled Trades Initiative 

Partners

National Heavy & Highway 

Alliance 

• Bricklayers 

• Carpenters 

• Iron Workers 

• Laborers’ 

• Operating Engineers 

• Plasterers’ and Cement Masons’ 

• Teamsters 

Construction Industry Round 

Table 

National Assoc. of Home Builders 

“Strong fiduciary oversight 

and protecting workers’ 

benefits is 

our highest priority.” 
(Continued from page 4) 

The number of reporting categories 

in the current form will be reduced 

and will more accurately reflect the 

services large unions provide to 

their members. And for the first 

time, union members will be able to 

readily obtain information about the 

financial transactions of large trusts 

like “joint funds,” which are partially financed and managed by 

their unions. Some union-financed 

trusts control hundreds of millions 

of dollars of assets, yet they have 

no financial accountability or transparency to the union members on 

whose behalf they are managed. 

Over the last several years, the Department has made major strides in 

converting the LMRDA reporting 

regime to an electronic system, in 

response to Congressional mandates. The new rule requires large 

unions covered by the changes to 

file their reports electronically or 

obtain a hardship exemption. The 

Department has developed financial 

reporting software that it has provided free of charge to covered unions. It has also provided extensive 

compliance assistance resources to 

help unions understand the new 

disclosure requirements and make 

changes to their accounting and 

reporting systems. The new rules 

were effective for annual financial 

reports for fiscal years beginning on 

or after July 1, 2004, although no 

union will have to actually file a 

report under the new disclosure rule 

until September 2005. Additional 

information about the rule and related issues may be found at 

2004, I urge all Americans to honor 

the brave men and women who serve 

in the United States Merchant Marine 

and to remember those merchant 

mariners who have made the ultimate 

sacrifice and given their lives in the 

service of our country. 

On May 20th, Secretary Chao participated in the National Maritime 

Day observance for the second year 

in a row. She released the following statement: 

“On this National Maritime Day 

The record of our merchant mariners 

and their contribution to our nation is 

long and distinguished. Their history 

of devoted service-in both war and 

peace-is an inspiration to every generation of Americans. Their tradition 

of courage, patriotism and perseverance has become an integral part of 

...Plan Fiduciaries Must “Get It Right” 

...Improved Financial Disclosures Forms For Unions 

Secretary Chao Celebrates National Maritime Day 

• Understand the terms of their 

plans; 

• Select and monitor service 

providers carefully; 

• Make timely contributions to 

fund benefits; 

• Avoid prohibited transactions; 

and 

• Make timely disclosures to 

workers and their beneficiaries and reports to the government. 

For a brochure or more information on upcoming seminars, call 

toll-free 866-444-EBSA or log on 

to www.dol.gov/ebsa. 

(Continued from page 4) 

cational seminars to help plan 

sponsors understand the rules and 

meet their responsibilities to 

workers and retirees, thereby improving their financial security.” 

The “Getting It Right” program 

emphasizes the obligation of plan 

sponsors and other fiduciaries to: 

VOLUME 1, ISSUE 2 THE LABOR ADVOCATE PAGE 5 

If You Suspect Fraud In Your 

Union’s Finances 

Contact: 

(866) 4-USA-DOL (toll-free) 

 or e-mail olms-public@dol.gov 
 Check out the Overtime Security Web 

 site at www.dol.gov/fairpay. It's 

 designed to help you understand the 

 Department's Overtime Security rule that 

 strengthens overtime protections. 

Under the new Overtime Security rule, workers earning less 

than $23,660 per year — or $455 per week — are guaranteed 

overtime protection. This will strengthen overtime rights for 6.7 

million American workers, including 1.3 million low-wage 

workers who were denied overtime under the old rules. 

U.S. DEPARTMENT OF LABOR 

LABOR LIAISONS 

Suite S2018 

200 Constitution Avenue, N.W. 

Washington, D.C. 20210 

Phone: 202-693-6000 

Fax: 202-693-6145 

Web: http://www.dol.gov/opa/laboradvocate 

cargo, representing more than 85 

percent of the equipment and supplies needed by our brave troops. 

And true to America’s compassionate character, these courageous 

merchant mariners are also delivering food and supplies to the Iraqi 

our nation’s heritage. 

Today, merchant mariners are crewing auxiliary vessels for the United 

States Navy and supporting our 

troops in Afghanistan and Iraq. 

Being part of a noble and patriotic 

profession, these merchant mariners 

always stand ready to respond to 

those situations when commercial 

ships are called upon to support 

military operations overseas. More 

than 5,000 brave merchant mariners 

have put themselves in harm’s way 

to deliver to our troops the combat 

gear, fuel, and other supplies 

needed to complete the liberation 

and reconstruction of Iraq. All told, 

merchant mariners have delivered 

more than 2.6 million short tons of 

(Continued from page 5) people. 

The United States in the 21st Century is the single largest national 

economy in the world and a premier 

force in international trade. America needs a strong U.S.-flag merchant marine to carry our commerce, promote our exports and 

support our national defense. 

National Maritime Day 2004 keeps 

alive the memory of merchant mariners who sacrificed for us in the 

past and who honor us today with 

their committed service. It is altogether fitting to pay our respects to 

these men and women who have 

always been ready to assist in 

America’s defense.”

...Merchant Mariners Honored 

United States Department of Labor 

Secretary Chao meets with apprentices from the Seafarers 

Piney Point Training Center after her remarks at the National Maritime Day Observance. (SIU Photo) 

Visit us on the Web: 

http://www.dol.gov 

SKILLED TRADES DAY 

Celebrating the men and women 

in the construction industry who are building America 

MILWAUKEE BREWERS vs. PITTSBURGH PIRATES 

Labor Day, September 6, 2004 

4:05 p.m. 

PNC Park (Pittsburgh, Pennsylvania) 

Sponsored by the U.S. Department of Labor