Sessions Introduces Labor Accountability Legislation

Press Release

Sessions Introduces Labor Accountability Legislation

Calls for monetary penalties for labor unions violating federal law

U.S. Congressman Pete Sessions (R-Dallas) today introduced the Labor-Management Reporting and Disclosure Enforcement Act of 2008 (H.R. 5775), promoting compliance with current labor laws by authorizing civil monetary penalties for labor unions that exhibit a clear disregard for the rights of union members and legal transparency requirements.

"Labor union members deserve fair and open representation," Sessions stated. "My legislation will help defend the rights of union members by levying penalties on unions that violate the trust of members by denying member access to financial records, failing to comply with federal reporting laws, or misusing union members' hard-earned dues."

Under current law, the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA) outlines significant labor union financial transparency and reporting requirements but sets no penalties for labor unions who violate the law. On average, 35% of unions fail to comply with the law's mandatory filing requirements.

When a labor organization fails to file their annual financial disclosure reports or files an incomplete report, the Secretary of Labor can only seek an injunction in court ordering compliance. This is a lengthy process which only results in an order that the statute be followed.

In response, Congressman Sessions' legislation would give the Secretary of Labor the authority to impose civil monetary penalties in amounts up to $250 a day, subject to a $10,000 maximum, when a labor organization, covered person, or entity is found responsible for violating the LMRDA reporting and disclosure deadlines.

"I am pleased that this important legislation will improve incentives for reporting compliance, discourage unions from improperly withholding critical information about how member dues are being spent, and provide greater transparency for union members," Sessions said. "Greater accountability will enhance the ability of union members to make informed decisions at union meetings and union officer elections."

The increased enforcement capabilities provided in Sessions' legislation will build on the Department of Labor's highly successful criminal investigation program under its Office of Labor Management Standards (OLMS). Since 2001, OLMS' vigorous criminal enforcement program has resulted in over 840 indictments and 800 convictions.

For example, OLMS' investigation led to the indictment, conviction, and sentencing last year of the former chief financial officer of the New York State Nurses Association, who was sentenced to jail and ordered to make full restitution for over $1 million he stole from the Association's union member dues.

"My legislation will provide OLMS with additional tools to ensure that labor bosses provide a full and fair accounting of how they spend members' dues, enforcing much-needed union transparency and accountability requirements on behalf of millions of American workers," Sessions concluded.

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