Office of Labor-Management Standards (OLMS)
Form T-1 Trust Annual Report
On December 1, 2010, the Office of Labor-Management Standards (OLMS) published in the Federal Register a final rule rescinding the Form T-1 Trust Annual Report and its implementing regulations. See: http://edocket.access.gpo.gov/2010/pdf/2010-29226.pdf. Under the rule, unions will use the Form LM-2 Labor Organization Annual Report to report entities that are wholly owned, controlled, and financed by a single union (i.e. “subsidiary organizations”). The final rule also modifies the existing subsidiary reporting on the Form LM-3 Labor Organization Annual Report by eliminating the option allowing filers to use a separate Form LM-3 report for their subsidiary organization, and instead allowing filers only the options of consolidating the subsidiary’s financial information in the Form LM-3 report filed for the labor organization, or attaching a separate audit report completed by a certified public accountant. These two options are also available for Form LM-2 filers.
Additionally, the final rule interprets the definition of “labor organization” under the Labor-Management Reporting and Disclosure Act consistent with the long held view of OLMS that the statute’s coverage does not encompass intermediate bodies that are wholly composed of public sector labor organizations.
Effective Date: This rule, including the rescission of the Form T-1, takes effect on January 1, 2011. The changes made to the Form LM-2 and Form LM-3 reporting requirements regarding subsidiary organization reporting will apply to reports required by labor organizations with fiscal years beginning on or after January 1, 2011.
Last Updated: 12/14/10