We use cookies to improve your experience and optimize user-friendliness. Read our cookie policy for more information on the cookies we use and how to delete or block them. To continue browsing our site, please click accept.

Breaking News: Proposed Changes to Form LM-2 Reporting

Earlier this week, the Office of Labor-Management Standards (“OLMS”) of the Department of Labor (“DOL”) proposed changes to the current Form LM-2 reporting, and proposed the establishment of a Form LM-2 Long Form (“LF”).

The DOL indicates that these proposed changes are a component of their continued effort to provide transparency about the financial activities of labor organizations to union members, the DOL, and the public by mandating that labor organizations provide additional and more detailed information in their reporting.

If you would like to further discuss the proposed changes to Form LM-2 reporting and how this may impact your labor union, please contact a member of Withum’s Labor Union Services Group.

Two Significant Proposed Changes to Form L-M2

As noted above, there are two significant elements of the proposal – the first is a modification of the existing Form LM-2, for purposes of providing additional financial information to users of the form. Significant changes proposed include expansion of disclosures surrounding purchases and sales of investments and fixed assets, and a change in where indirect payments for officers and employees for public transportation and temporary lodging paid directly by the union or with a credit card are reported. Additionally, the proposal includes the elimination of functional reporting for officer and employee disbursements, thereby removing the requirement to allocate time and report by functional category for each officer and employee in the form.

The second significant aspect to the proposal is the introduction of the new Form LM-2 LF, which applies to labor organizations with annual receipts of $8,000,000 or more. This new form is expected to significantly increase the reporting requirements of a union, and includes the establishment of 12 new schedules. Significant changes proposed in the creation of the Form LM-2 LF include the modifications to the Form LM-2 highlighted above. Additionally, the Form LM-2 LF adds supporting schedules for certain cash receipts line items on Statement B, such as dues and agency fees, per capita tax, and sales of supplies. The Form LM-2 LF also proposes a requirement to report union strike funds and requires that foreign transactions be reported, if applicable.

The proposed changes will take effect 30 days after publication and apply prospectively to labor organizations’ fiscal years beginning on or after the effective date. Public comments, due 60 days after publication in the Federal Register, must be made electronically through the Federal eRulemaking Portal http://www.regulations.gov/. Publish date TBD.

Labor Union Services

Previous Post
Next Post
Article Sidebar Logo Stay Informed With Withum Subscribe
X

Insights

Get news updates and event information from Withum

Subscribe