January 2012 

Introduction 

When the Labor-Management Reporting and Disclosure Act (LMRDA) was enacted in 1959, 

Congress declared, “it is essential that labor organizations, employers and their officials adhere 

to the highest standards of responsibility and ethical conduct in administering the affairs of 

their organizations, particularly as they affect labor-management relations.” The LMRDA 

primarily promotes union democracy and financial integrity in private sector labor unions 

through standards for union officer elections and union trusteeships and safeguards for union 

assets. Additionally, the LMRDA promotes transparency through reporting and disclosure 

requirements for labor unions and their officials, employers, labor relations consultants, and 

surety companies. The Office of Labor-Management Standards (OLMS) continues today to 

pursue this important mission through criminal and civil enforcement of the LMRDA. 

The major provisions of the LMRDA, by title, are: 

 Title I: Bill of Rights for union members 

 Title II: Requirements for reporting and disclosure by labor unions, union officers and 

employees, employers, labor relations consultants and surety companies 

 Title III: Rules for establishing and maintaining trusteeships 

 Title IV: Standards for conducting fair elections of union officers 

 Title V: Safeguards for protecting union funds and assets 

OLMS also administers provisions of the Civil Service Reform Act of 1978 and the Foreign 

Service Act of 1980, which extend comparable protections to Federal labor unions. In addition, 

OLMS’ Division of Statutory Programs administers the Department’s responsibilities under the 

Federal Transit Act by ensuring that fair and equitable arrangements protecting mass transit 

employees are in place before the release of Federal transit grant funds. 

OLMS is the front line agency responsible for enforcing the LMRDA through its criminal and 

civil investigations. Criminal investigations include embezzlement, deprivation of rights by 

violence, extortionate picketing, willful failure to file reports, filing false reports, prohibited 

union office holding or employment of convicted persons, and fraud related to union elections. 

Civil investigations include violations of the LMRDA involving union election procedures, 

financial disclosure requirements, and trusteeship standards. 

OLMS conducts audits of union finances, administers a comprehensive compliance assistance 

program, and offers information and technical support to union officers and members to further 

the goals of financial integrity, union democracy, and transparency. 

2011 Annual Report 

Office of Labor-Management Standards

U.S. Department of Labor 

John Lund, Director 
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Compliance assistance also plays a central role in the OLMS enforcement strategy. OLMS has 

an active compliance assistance program to promote voluntary compliance with the LMRDA by 

informing union officers and employees of their responsibilities and informing members of 

their legal rights. 

Summary 

This report consists of six sections, with related tables and charts. 

 Section 1 presents key criminal enforcement results pursuant to LMRDA Title V (financial 

safeguards for labor organizations), for FY 2011 and the preceding four-year average, 

together with noteworthy criminal enforcement actions in FY 2011. A more complete listing 

of these actions is located at www.dol.gov/olms/regs/compliance/enforce_2011.htm on 

the OLMS website. 

 Section 2 presents key civil enforcement results pursuant to LMRDA Title III (trusteeships) 

and Title IV (union officer elections) together with noteworthy union officer election case 

summaries for FY 2011. Listings of union officer election voluntary settlement agreements 

are located at www.dol.gov/olms/regs/compliance/civil_actions_2011.htm (2011). Final 

decision letters in election and trusteeship cases are located on the OLMS website at 

www.dol.gov/olms/regs/compliance/OLMS_FOIA.htm. 

 Section 3 presents reporting and disclosure data and related program activity pursuant to 

LMRDA Title II (reporting requirements). Reports are available for public disclosure on the 

OLMS Online Public Disclosure Room, www.unionreports.gov. 

 Section 4 summarizes grant certification activity pursuant to Section 13(c) of the Federal 

Transit Act, ensuring fair and equitable arrangements protecting mass transit employees. 

 Section 5 presents major regulatory activities in FY 2011. 

 Section 6 briefly describes compliance assistance activities conducted in FY 2011. 

To view previous OLMS annual reports, visit: 

www.dol.gov/olms/regs/compliance/OLMS_Annual_Reports.htm. 

Program Activities 

1. Safeguarding Union Assets 

As part of the effort to protect and safeguard union funds and assets, OLMS investigates 

possible embezzlement from unions and other violations of criminal laws. Over the past 10 

years, restitution of $107,051,269 has been paid or ordered to be paid to defrauded unions and 

other parties. OLMS also conducts audits of labor unions to ensure and promote their 

compliance with the LMRDA. Compliance audit closing letters are located at 

www.dol.gov/olms/regs/compliance/CA_closing_letters.htm on the OLMS website. 
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Union officers, employees, and representatives have a duty to manage the funds and property 

of the union solely for the benefit of the union in accordance with its constitution. A union 

officer or employee who embezzles or misappropriates union funds or assets commits a federal 

crime punishable by fine and/or imprisonment. OLMS is responsible for investigating these 

crimes. The following are some of the most significant criminal enforcement actions from FY 

2011. 

Former Carpenters Local 1421 Office Manager Sentenced for Embezzling Union Funds 

In February 2011, Freida Carter-London, former office manager of Carpenters Local 1421 in 

Arlington, Texas, was sentenced to 60 months probation and was ordered to pay full restitution 

of $99,178 due by the end of her probation. In November 2010, Carter-London pled guilty to 

embezzling $99,178 in union funds. She accomplished the embezzlement by stealing cash dues 

and substituting checks from prior periods in union bank deposits to conceal her theft of cash. 

Former Union Officer Sentenced to Prison for Extortion 

Warren Annunziata, former President and Fund Administrator for United Craft and Industrial 

Workers Union Local 91 (a union that represents school bus drivers in New York City), was 

sentenced in March 2011 to 33 months in prison, two years supervised release, and was ordered 

to pay $250,000 in forfeiture and restitution. Annunziata was previously indicted for extorting 

cash payments from union employers totaling at least $500,000. Annunziata collected tens of 

thousands of dollars from a union employer who placed money into a bank account controlled 

by Annunziata, which he then used for personal expenses by utilizing a false identity and 

forged signatures. This case was conducted jointly with the Department of Labor’s Office of 

Inspector General and the Federal Bureau of Investigation. 

Former Teamsters Officer Embezzles Union Funds for Gambling and Travel 

Mark Tracy, former Secretary-Treasurer of Teamsters Local 533 in Reno, Nevada, was sentenced 

in June 2011 to two years in prison, three years of supervised release, and was ordered to pay a 

$10,000 fine and restitution of $87,119. Tracy was indicted on one count of embezzling $125,000 

in union funds, one count of filing false Form LM-2 reports, one count of falsifying union 

records, and one count of willfully concealing or destroying union records. Tracy used union 

funds to pay for unauthorized personal expenses, for gambling and travel, which were charged 

on two union credit cards. To conceal his activities, Tracy fabricated credit card statements and 

receipts to provide falsified documentation for his unauthorized credit card charges. 

Former Plumbers Employee Sentenced for Embezzlement 

Mechelle Busse, former office manager for Plumbers Local 568 in Gulfport, Mississippi, was 

sentenced in July 2011 to three years’ probation, including six months of home confinement, 

and was ordered to pay restitution. Earlier in 2011, Busse pled guilty to embezzling between 

OLMS Enforcement Statistics – Financial Integrity FY 2011 FY 2007 – FY 2010 

Yearly Average 

Criminal Cases Processed 321 390

Indictments 144 121

Convictions 116 118

Compliance Audits Conducted 461 719
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$79,000 and $110,000 in union funds. During a prior audit, OLMS found unrecorded and 

unaccounted for receipts and minimal receipt records prior to Hurricane Katrina. OLMS 

compared receipts, deposit records, hundreds of members’ monthly dues contributions and 

payments from multiple employers to uncover Busse’s embezzlement of incoming receipts. 

Busse employed a number of methods to hide her embezzlement, primarily through a check 

substitution scheme. 

Former Carpenters Local 600 Bookkeeper Sentenced for Embezzling Union Funds 

In September 2011, Colin Rehrig, former bookkeeper for Carpenters Local 600 in Bethlehem, 

Pennsylvania, was sentenced to eight months of home confinement followed by two years of 

probation. He was also ordered to pay a $100 special assessment and a $1,500 fine. Rehrig had 

previously paid $69,749 in restitution. In June 2011, he pled guilty to a one-count information 

charging him with embezzling union funds. Rehrig prepared and paid himself nearly 200 

inflated payroll checks. 

Former Secretary-Treasurer Guilty of Embezzling over $300,000 

James Drury, former Secretary-Treasurer of Communications Workers of America (CWA) Local 

3121 in Hialeah, Florida, was sentenced in March 2011 to 24 months incarceration followed by 

three years supervised release. Between 2005 and 2009, Drury wrote unauthorized checks to 

himself, made unauthorized withdrawals from the union’s checking account, and used the 

union’s credit card for personal expenses, together totaling over $300,000. Drury forged the 

former president’s signature on checks in order to deceive the union and further his scheme. At 

sentencing, Drury was ordered to pay $186,757 in yet unpaid restitution and a $100 special 

assessment. This case was conducted jointly with the Department of Labor’s Office of Inspector 

General. 

Former National Officer Gets Prison For Theft Of Union Funds During Hurricane Katrina 

Frankie Sanders, former American Postal Workers Union (APWU) Southern Regional 

Coordinator in Houston, Texas, was sentenced in June 2011 to 18 months in federal prison 

without parole for theft of union funds. A jury found Sanders guilty of submitting false travel 

receipts seeking and obtaining more than $10,000 in union funds for reimbursement. Sanders 

was also sentenced to a three-year term of supervised release and ordered to pay restitution to 

the APWU. OLMS initiated the investigation after an audit disclosed falsified hotel receipts in 

excess of $10,000. The fraudulent receipts were for two New Orleans hotels and included 

alleged stays for periods when the hotels were closed due to damages as a result of Hurricane 

Katrina. In addition to his employment with the APWU National, Sanders also served as a 

trustee to a New Orleans APWU local union following the aftermath of Hurricane Katrina. 

Two Former Officers Sentenced in Embezzlement Conspiracy of $783,931 

In May 2011, John McGovern, former Secretary-Treasurer of APWU Local 190 (the largest 

APWU local in New Jersey), was sentenced to 20 months of imprisonment followed by 36 

months of supervised release and was ordered to pay restitution of $783,931. McGovern 

previously pled guilty to conspiring with former Local 190 President Gary Weightman to 

embezzle Local 190 funds. McGovern used embezzled union money for gambling. In June 

2011, Weightman was sentenced to one year of home confinement followed by 48 months of 

supervised release and was ordered to pay a $1,000 fine for tax evasion. Weightman received a 

downward departure from the sentencing guidelines as a result of his cooperation with the 
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government, which assisted in McGovern’s conviction. This investigation was conducted 

jointly with the U.S. Postal Inspection Service. 

Former President Sentenced for Writing Over 100 Unauthorized Checks 

Garold Lawson, former President for National Association of Government Employees (NAGE) 

Local R14-139 in Fort Leonard Wood, Missouri, was sentenced in June 2011 to six months 

confinement, four months home confinement, and three years probation. Lawson previously 

pled guilty to embezzling $67,566 in union funds. OLMS initiated the investigation when an 

audit revealed inadequate documentation to support mileage, allowances, and reimbursed 

expenses ostensibly incurred by Lawson. The investigation disclosed that between 2004 and 

2009, Lawson wrote over 100 unauthorized checks to himself from the union’s account. 

Former Union Employee Sentenced to Prison for Embezzling over $400,000 

April Franklin, former office secretary for Plumbers Local 333 in Lansing, Michigan, and former 

bookkeeper for Local 333's Joint Apprenticeship Training Committee, was sentenced in July 

2011 to 42 months of imprisonment, followed by 36 months of supervised release and 300 hours 

of community service. She was also ordered to pay restitution of $411,979 and a $200 special 

assessment. Franklin previously pled guilty to one count of embezzling union funds and one 

count of theft from an employee benefit plan. She admitted to stealing $371,093 from the Joint 

Apprenticeship and Training Fund in addition to $40,886 from the union. Franklin issued 

checks to herself from the training fund to pay for personal expenses and to pay her monthly 

credit card bills and pocketed cash dues remitted by members to pay for her clothing, food, and 

travel. She also falsified the union’s accounting records to hide her thefts from other union 

officials. Franklin’s significant embezzlement caused great financial distress to the union and 

affected its ability to pay certain death benefits to union members’ families. This investigation 

was conducted jointly with the Department of Labor’s Office of Inspector General and 

Employment Benefits Security Administration. 

Former Union Employee Sentenced for Embezzlement, Bank Fraud, and Identity Theft 

In September 2011, Teresa Wilson, former office manager for Plumbers Local 41 in Missoula, 

Montana, and former President of the Southwestern Montana Central Labor Council (CLC), 

was convicted of one count of embezzlement from a labor union, one count of bank fraud, and 

one count of aggravated identity theft. Wilson was sentenced to three years and one day of 

imprisonment, five years of supervised release after imprisonment, and was ordered to pay an 

assessment of $300 and restitution of $124,599. Between 1997 and 2010, Wilson worked for 

Local 41 where her responsibilities included collecting receipts for the union and for the union’s 

Joint Apprenticeship Training Committee (JATC). Wilson embezzled funds by taking checks 

intended for Local 41 and its JATC, depositing them into the CLC account, and then using the 

money in the CLC account for personal purchases. Wilson forged the signature of the former 

CLC secretary-treasurer on CLC checks. She used the stolen money for gambling. 

2. Protecting Union Democracy 

The LMRDA establishes democratic standards for conducting union officer elections, such as 

the frequency and method of election, the right of members in good standing to be candidates, 

rights of candidates, and voting rights of members. When a union member files a timely 

complaint protesting a regularly scheduled election of union officers following a timely and 
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proper internal protest, OLMS conducts an investigation. If the investigation reveals a violation 

of the union democracy provisions of the LMRDA that may have affected the outcome of the 

election, OLMS asks the union to agree to allow OLMS to supervise a new election. If the union 

agrees, a voluntary compliance agreement is signed. If the union does not voluntarily agree to 

remedy the violation, OLMS takes legal action seeking a new election supervised by OLMS. 

The agency also conducts investigations to determine the validity of the imposition or 

continuation of trusteeships imposed by national unions on subordinate bodies. Trusteeship 

investigations are conducted upon receipt of a complaint from a member or subordinate body. 

OLMS Enforcement Statistics – Union Democracy FY 2011 FY 2007 – FY 2010 

Yearly Average 

Election Investigations Conducted 174 129

Lawsuits Filed 3 8

Voluntary Compliance Agreements Obtained 19 25

Supervised Elections Completed 26 31

Trusteeship Investigations 8 11

The following are highlights of some of the most significant OLMS election cases during FY 

2011. 

Teamsters Local 901 Agrees to Settle Department’s Lawsuit 

In December 2010, the Department and Teamsters Local 901 filed a stipulation of settlement to 

resolve the Department's April 2009 lawsuit which sought to set aside the local's October 2008 

election of president, vice president, and three trustees. The lawsuit filed in the U.S. District 

Court for the District of Puerto Rico alleged that the local failed to provide adequate safeguards 

in that polling sites and polling hours were not announced in a timely manner, incumbent 

candidates developed and had access to information before it was provided to opposition 

candidates, the election at some polling sites was not conducted at the scheduled time, 

incumbents had custody of ballots, and an observer was denied access to a polling site. The 

OLMS supervised election was conducted in October 2011 at 32 polling sites and by mail ballot 

for those members working in the U.S. Virgin Islands. During the two days of polling, a total of 

27 OLMS employees were assisted at the polls by volunteers from the Puerto Rico Department 

of Labor and the U.S. Department of Labor’s Wage and Hour Division. 

Court Rules in Favor of Department in Lawsuit Against AFGE 

In February 2011, the U.S. District Court for the District of Columbia granted the Department's 

motion for summary judgment and ordered a new election under the Department's supervision 

in a lawsuit against the American Federation of Government Employees (AFGE) National 

Union. The lawsuit sought to void the May 2008 election for District 2 AFGE National Vice 

President (NVP) because the union denied a member in good standing the right to run for 

office. OLMS supervised new nominations and a new election for the office of AFGE District 2 

NVP. Between February and June 2011, OLMS investigators from the New York, Buffalo, 

Boston, and Philadelphia District Offices reviewed delegate election records for each of the 120 

local unions in District 2 and supervised new delegate nominations and elections where 

necessary. The supervised election was successfully completed at the July 2011 District 2 caucus 
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with nominations and an election of National Vice President that satisfied LMRDA 

requirements and generated no complaints from the union membership. 

Department Files Suits Against NEMSA 

In March 2011, the Department filed suit against the National Emergency Medical Services 

Association (NEMSA), located in Modesto, California, in the U.S. District Court for the Eastern 

District of California. The lawsuit sought an order installing James Gambone to the office of 

president and prohibiting the union from removing Gambone from office because he was not 

eligible to run for or hold office. The complaint alleged the union denied Gambone, a member 

in good standing, the right to be a candidate and run for office, and further refused to permit 

Gambone to hold and serve in that position when he was duly elected president by receiving 

the most votes, by write-in votes, in the union’s July 2010 election. In November 2011, the 

Department filed a second suit against NEMSA, this time alleging that the union failed to hold 

its regular officer election in June 2011. By failing to allow members to elect their union officers 

at least once every three years, the Department contends that the union violated the LMRDA. 

To remedy these violations, the Department seeks to supervise an election for vice president, 

treasurer, and five regional director positions. 

Machinists Lodge 49 Agrees to Hold New OLMS Supervised Election 

In May 2011, OLMS entered into a voluntary compliance agreement with Local Lodge 49 of the 

International Association of Machinists and Aerospace Workers, located in Crete, Illinois, 

concerning the election of officers conducted in December 2010. OLMS concluded that union 

funds were unlawfully used to campaign after a forensic examination of the union’s computers 

revealed campaign literature that promoted the incumbent slate. The supervised election was 

conducted in August 2011 by in-person polling. 

Teamster Local 948 Settles Suit and Holds New Election

Based on a stipulation of settlement filed in October 2010, OLMS supervised the election of officers in 

Teamsters Local 948, located in Modesto, California. The Department had filed suit in the matter due 

to investigative findings that the local violated the LMRDA when candidates and their supporters 

collected ballots and then cast them for members during its previous election. In August 2011, the 

OLMS team supervised five polling sites located throughout Northern California to ensure that every 

eligible member had the opportunity to cast their ballot in a fair election. There were numerous 

obstacles to overcome during the election process including inconsistencies during testing of voting 

machines, the use of slate names, allegations of improper campaigning and concerns about absentee 

ballots. OLMS utilized this multiple polling site election – a first for this local – to ensure that every 

member retained the right to cast a secret ballot. 

Voluntary Agreement for New Election in Operating Engineers Local 310

In February 2011, OLMS entered into a voluntary compliance agreement with the International 

Union of Operating Engineers (IUOE) Local 310, located in Green Bay, Wisconsin, concerning 

its election of officers conducted in August 2010. The OLMS investigation of the election 

disclosed that Local 310 failed to mail an election notice to all members, denied members the 

opportunity to vote, and allowed ineligible members to vote. IUOE Local 310 agreed to conduct 

a new election, under OLMS supervision, for the offices of business manager, district director of 
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the power plant, and three trustees. The supervised election was conducted by mail ballot with 

the tallying completed in May 2011. The race for trustee was decided by only one vote.

IATSE Local 600 Enters into a Voluntary Compliance Agreement with OLMS 

In February 2011, OLMS entered into a voluntary compliance agreement with International 

Alliance of Theatrical Stage Employees (IATSE) Local 600, located in Los Angeles, California, 

concerning its May 2010 election of officers. The OLMS investigation of the election disclosed that 

the local improperly applied a new working-at-the-trade candidate eligibility requirement 

retroactively. IATSE Local 600 agreed to conduct a new election, under OLMS supervision, for 

the office of Western Region National Executive Board – Director of Photography and Visual 

Effects Supervisor. The OLMS Los Angeles and San Francisco District Offices worked 

cooperatively to properly supervise the election (the union used a contracting service to mail 

ballots out of Northern California) concluded in June 2011. 

OLMS Supervises American Foreign Service Association (AFSA) Election 

In February 2010, OLMS entered into a voluntary settlement agreement with the American Foreign 

Service Association (AFSA) stating that OLMS would supervise all races in AFSA's next regularly 

scheduled election of officers. The AFSA has approximately 15,000 members spread throughout 

the world. The logistics of conducting the mail ballot election were difficult given that mail takes 

an extremely long time to reach some members in remote locations and that some ballots had to 

be sent through U.S. embassies abroad. Given this set of circumstances, nominations were 

announced by mail in November 2010 and acceptances were not due until February 2011. This 

supervised election required active supervisory involvement for almost a year; an extraordinary 

amount of time was spent reviewing publications and other documents before they were 

dispersed due to the large volume of information the union sends to its members. More than 

15,000 ballots were sent to member in April 2011 and the election was successfully concluded 

when the return ballots were tallied in June 2011 under OLMS supervision. 

3. Labor Union and Labor-Management Transparency 

The LMRDA is predicated on the principle that union members, officers, and the general public 

benefit by having access to information about labor unions, their officers and employees, 

employers, labor relations consultants, and surety companies. To this end, OLMS administers a 

comprehensive reporting and disclosure program. OLMS also offers compliance assistance 

sessions for union members and officials on the financial reporting obligations under the 

LMRDA. 

Unions must file annual financial reports (LM-2, LM-3, LM-4, or simplified filings) with OLMS. 

Unions must also file trusteeship reports (LM-15, LM-16) when supervision or control is 

established over a subordinate body. Other entities – employers (LM-10), labor relations 

consultants (LM-20, LM-21), union officers and employees (LM-30), and surety companies (S-1) 

– are also required to file reports under certain circumstances. Reports are available for public 

disclosure on the OLMS Online Public Disclosure Room, www.unionreports.gov. OLMS also 

collects and maintains collective bargaining agreements (CBAs) filed by CBA signatories on a 

voluntary basis. CBAs covering 1,000 or more workers are maintained by OLMS and are located at 

www.dol.gov/olms/regs/compliance/cba/index.htm. 
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OLMS received and processed the following public disclosure reports in FY 2011. 

OLMS LMRDA Reports Administration FY 2011 

LM-2 Labor Organization Annual Reports Processed 5,347 

LM-3 Labor Organization Annual Reports Processed 12,079 

LM-4 Labor Organization Annual Reports Processed 7,718 

Simplified Labor Organization Annual Reports Processed 1,563 

LM-10 Employer Reports Processed 953 

LM-15 Trusteeship Reports Processed (initial, semiannual, and 15A) 354 

LM-16 Terminal Trusteeship Reports Processed 106 

LM-20 Labor Relations Consultant Agreement and Activities Reports Processed 451 

LM-21 Labor Relations Consultant Receipts and Disbursements Reports Processed 94 

LM-30 Labor Organization Officer and Employee Reports Processed 1,202 

S-1 Surety Company Annual Reports Processed 79 

Total Reports Processed 29,946 

In the beginning of FY 2011, OLMS introduced its new Electronic Forms System (EFS). EFS is a 

web-based system for completing and submitting Labor Organization Annual Financial 

Reports. EFS allows any labor organization with a web-enabled computer the ability to 

complete and electronically submit an LM report without the need for any special software or 

digital signature. EFS performs all calculations for the LM report and completes a form error 

check prior to submission to OLMS. EFS also allows unions that maintain electronic accounting 

records to import financial data from their accounting programs directly into their LM form. 

Currently, EFS is available for use by all LM-2/3/4 filers regardless of size. 

When labor organization annual reports are not filed in a timely manner or the reports filed are 

not acceptable, OLMS opens an investigation to obtain compliance. Additionally, when reports 

due from employers, labor relations consultants, and union officers and employees are not 

timely or properly filed, OLMS pursues delinquent and deficient reports from these entities, as 

“Special Reports” cases. 

OLMS Enforcement Statistics – Reporting and Disclosure FY 2011 FY 2007 – FY 2010 

Yearly Average

LM-2/3/4 Delinquent Reports Cases Completed 2,757 2,318 

LM-2/3/4 Deficient Reports Cases Completed 570 724 

Special Reports Cases Completed 129 97 

4. Employee Protections 

OLMS’ Division of Statutory Programs (DSP) administers responsibilities under Federal transit 

law by ensuring that fair and equitable arrangements protecting mass transit employees are in 

place before the release of Federal transit assistance. When Federal funds are used to acquire, 

improve, or operate a transit system, Federal law requires that arrangements must be made to 

protect the rights of affected mass transit employees. These arrangements must be approved by 

OLMS before the U.S. Department of Transportation’s Federal Transit Administration (FTA) 

can release funds to mass transit employers. 
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In FY 2011, DSP certified 2,205 Federal transit grants within an average processing time of 20 

days per grant, well under a 45-day goal instituted by DSP. More information about employee 

protections under Federal transit law, including compliance assistance materials, can be located 

on the OLMS website at www.dol.gov/olms/regs/compliance/compltransit.htm. 

5. Regulatory Activities 

Rescission of the Form T-1 Trust Annual Report 

On December 1, 2010, OLMS published in the Federal Register (75 FR 74936) a final rule that 

rescinded the Form T-1 Annual Report and reinstituted a requirement that unions report 

financial information concerning their “subsidiary organizations.” Filers have the option of 

either consolidating the subsidiary information in the union’s disclosure report, or attaching a 

regular annual report for the subsidiary. Additionally, the final rule reinstated the OLMS 

policy that the LMRDA does not cover intermediate bodies that are wholly composed of public 

sector labor organizations. 

Request for Information on the Use of Electronic Voting Systems in Union Officer 

Elections 

On January 11, 2011, OLMS published in the Federal Register a Request for Information (RFI) 

notice seeking public comment to assist the Department of Labor (Department) in issuing 

guidelines concerning the use of electronic voting systems in union officer elections. Title IV of 

the LMRDA establishes democratic standards for the conduct of union officer elections. The 

LMRDA, however, does not require a particular method or system of voting. Labor 

organizations are free to establish their own methods or systems of voting for officer elections 

as long as they are consistent with lawful provisions in the union’s constitution and bylaws and 

the provisions of Title IV of the LMRDA. 

Labor organizations and other interested parties have sought guidance from the Department 

regarding the LMRDA compliance of electronic voting systems. This request for information 

sought public comment to assist the Department in the consideration and issuance of guidance 

regarding the use of electronic voting systems. The comment period closed on March 14, 2011, 

and OLMS is reviewing comments received. 

Proposed Revisions to the Form LM-10 and Form LM-20: Employer-Consultant Reporting 

Requirements 

On June 21, 2011, OLMS published a Notice of Proposed Rulemaking pertaining to the 

employer and labor relations consultant reporting requirements under section 203 of the 

LMRDA. Section 203 requires the parties to file reports concerning agreements whereby the 

third-party consultant undertakes activities with an object to persuade employees concerning 

their rights to organize and bargain collectively. Section 203(c) exempts employers and 

consultants from the reporting otherwise required by sections 203(a) and (b) if the consultant 

only provided advice to the employer in connection with persuading employees. The proposed 

rule would revise the interpretation of 203(c) to narrow the scope of the advice exemption. The 

comment period closed on September 21, 2011. The Department is reviewing comments 

received. 
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6. Compliance Assistance 

In FY 2011, OLMS undertook the following initiatives as part of a comprehensive compliance 

assistance program to educate unions, union officials, employers and consultants about the 

LMRDA: 

 OLMS continued its program of structured, nationwide compliance assistance seminars 

but sought to reduce the number of actual sessions while increasing attendance through 

enhanced recruitment. The goal of this program is to provide an opportunity each year 

for the officers of every labor organization to attend a compliance assistance seminar. 

The content of the compliance assistance seminar is similar throughout the country so 

that every officer in attendance benefits from the same material. In FY 2011, OLMS 

conducted 134 compliance assistance seminars for 4,633 attendees. In total, OLMS 

recorded 26,072 contact hours of compliance assistance (i.e., the number of participants 

multiplied by the number of hours of instruction). 

 OLMS continued to be responsive to all specific requests for compliance assistance 

seminars. OLMS received and responded to hundreds of requests for information and 

interpretations. 

 In FY 2011, OLMS entered into voluntary compliance partnerships with 12 national and 

international unions resulting in significant improvements in the reporting and bonding 

compliance of their affiliates, as well as promoting training initiatives and development 

of best practices. 

 OLMS continued to promote and use an electronic mailing list system to send e-mail 

messages to unions, accountants, union members, and other interested parties. More 

than 33,000 subscribers to the Department of Labor’s electronic messaging system 

receive OLMS messages. 

 OLMS published four new compliance tips on its “Compliance Tips” page, 

http://www.dol.gov/olms/regs/compliance/compltips.htm. With the release of its 

Electronic Forms System (EFS) for LM-3 and LM-4 filers in May 2011, OLMS also created 

a new web page, http://www.dol.gov/olms/regs/compliance/efs/efsintro.htm, 

including tutorials on how to register and instructions on using EFS. 

 In FY 2011, OLMS also revised its LM-2 PowerPoint presentation and prepared a second 

one for EFS filers. These may be accessed at: 

www.dol.gov/olms/regs/compliance/LM2ppt.htm.

 Modeled after its long-standing Labor Organization Orientation Program (LOOP) for 

newly registered labor organizations, OLMS instituted its Persuader Reporting 

Orientation Program (PROP) for employers hiring consultants in National Labor 

Relations Board (NLRB) certification elections. OLMS sent a letter to all employers and 

representatives listed in certification petitions advising them of their potential reporting 

responsibilities under Section 203 of the LMRDA.