OLMS News
Number: 04-16
July 26, 2016
Mandatory Electronic Filing for the Forms LM-3 and LM-4
On July 1, 2016, the Office of Management and Budget approved the Office of Labor-Management Standards’ (OLMS) revisions to the information collection request 1245-0003, as well as the Form LM-2, LM-3, and LM-4 Labor Organization Annual Report instructions. See the approved collection at http://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201604-1245-001.
These changes require filers of the Forms LM-3 and LM-4 to submit the reports electronically, and offer them temporary and continuing hardship exemptions when electronic filing will cause undue burden or expense. The changes also modify the hardship exemption process for Form LM-2 filers, by eliminating the continuing hardship exemption for Form LM-2 filers. Visit the Mandatory Forms LM-3 and LM-4 Electronic Filing page on the OLMS website to view the revised forms and instructions.
Specifically, labor organizations covered by the Labor-Management Reporting and Disclosure Act (LMRDA), and similar statutes, must file annual financial disclosure reports. Since 2005, OLMS has required the largest labor organizations, those with $250,000 or more in total annual receipts, to submit their financial disclosure form, the Form LM-2, electronically. OLMS has permitted, but not required smaller unions, those that file the Form LM-3 and Form LM-4 to file electronic reports. To file electronically, labor unions use the Electronic Forms System, which allows anyone with a web-enabled computer to complete, sign, and electronically file without any cost and without downloading special software. Under the new rule, OLMS will require all these filers to file electronically.
There are many benefits to electronic filing. Electronic reporting contains error checking and trapping functionality, as well as online, context-sensitive help, which improves the completeness and accuracy of the reporting. Electronic filing is more efficient for reporting entities, results in more immediate availability of the reports on the agency’s public disclosure website, and improves the efficiency of OLMS in processing the reports and in reviewing them for reporting compliance. In contrast, paper reports must be scanned and processed for data entry before they can be posted online for disclosure, which delays their availability for public review.
OLMS will provide a process for all labor union filers to apply for a temporary hardship exemption, whereby filers may apply for additional time to complete the report electronically, provided that they temporarily submit paper forms in the interim. Additionally, Form LM-3 and LM-4 filers can apply for a continuing hardship exemption, which permits filers to delay electronic filing for as long as a year. Previously, the largest unions, filers of Form LM-2, were also permitted a continuing hardship exemption, but this option has been eliminated.
The mandatory Form LM-3 and Form LM-4 electronic filing, as well as the changes to the Form LM-2 hardship process, will be applicable to fiscal years beginning on or after January 1, 2017. Please visit the Form LM-3 and Form LM-4 pages on the OLMS website, as well as the Form LM-2 hardship process page, for information on the current forms and methods of filing.
For further information, please call OLMS at (202) 693-0123 or email OLMS-Public@dol.gov. You can also contact your nearest OLMS field office.
Last Updated: 7-26-16