OLMS News
Number: 02-16
Special Enforcement Policy for certain Form LM-21 Requirements
The Department of Labor’s fall 2015 Semi-Annual Regulatory Agenda announced that the Office of Labor-Management Standards (OLMS) intends to pursue a rulemaking to revise the Form LM-21, Receipts and Disbursements Report. The rulemaking will propose mandatory electronic filing for Form LM-21 filers, and it will review the layout of the Form LM-21 and its instructions, including the detail required to be reported.
In addition, on March 24, OLMS issued the final Persuader Rule and revised the Form LM-20, Agreements and Activities Report, and made it effective for agreements and arrangements entered into on or after July 1, 2016. For further information, please visit the OLMS Persuader Rule page and employer-consultant reporting page.
Due to changes in the Form LM-20 reporting requirements, persons (often called labor relations consultants) who had previously not been required to file the Form LM-20 are now required to file that form. Further, labor relations consultants required to file a Form LM-20 must also file an annual Form LM-21 Receipts and Disbursements Report, if any payments were made or received during the fiscal year as a result of arrangements of the kind requiring Form LM-20. Such filers must file Form LM-21 within 90 days after the end of their fiscal year.
In light of changes to the LM-20 and potential changes in Form LM-21 reporting obligations that may be proposed in the upcoming rulemaking, OLMS has determined that a special enforcement policy should apply. Those filers of Form LM-20 who must also file a Form LM-21 will not be required to complete two parts of the LM-21. Specifically, OLMS will not take enforcement action based upon a failure to complete the following Parts of Form LM-21:
- Part B (Statement of Receipts), which ordinarily requires the filer to report all receipts from employers in connection with labor relations advice or services regardless of the purposes of the advice or services, and/or
- Part C (Statement of Disbursements), which ordinarily requires the filer to report all disbursements made by the reporting organization in connection with labor relations advice or services rendered to the employers listed in Part B.
The Form LM-21 must be signed by the president and treasurer of the employer to certify the accuracy and completeness of the information provided. So long as this special enforcement policy is in place, a Form LM-21 that omits the information requested by Parts B and C will be deemed complete.
In addition, Section 206 of the LMRDA requires all individuals who must file reports such as Form LM-21 to maintain applicable records such as "vouchers, worksheets, receipts, and applicable resolutions" for a period of at least five years after such reports have been filed. 29 U.S.C. § 436. While this special enforcement policy is in effect, consultants need not maintain records solely relating to Part B and Part C.
This special enforcement policy is effective immediately. It will remain in effect until further notice, which will be provided no less than 90 days prior to any change.
Last Updated: 4-29-16