US Department of Labor: Spring Regulatory Agenda 2010
Office of Labor-Management Standards (OLMS)
Topic: Interpretation of the “Advice” Exemption in Section 203(c) of the Labor-Management Reporting and Disclosure Act
Notice of Proposed Rulemaking
The Department of Labor’s Office of Labor-Management Standards (OLMS) plans to publish a notice of proposed rulemaking to narrow the application of the “advice exemption” in section 203(c) of the Labor-Management Reporting and Disclosure Act (LMRDA).
Statutory Requirement
Section 203 of the LMRDA establishes reporting and disclosure requirements for employers and persons, including labor relations consultants, who enter into any agreement or arrangement under which the consultant (or other person) undertakes activities to persuade employees as to their rights to organize and bargain collectively or to obtain certain information concerning the activities of employees or a labor organization in connection with a labor dispute involving the employer (“persuader agreements”). Each party must also disclose payments made pursuant to such agreement or arrangement. Section 203(c) of the LMRDA provides that employers and consultants are not required to file a report by reason of the consultant’s giving or agreeing to give “advice” to the employer.
Regulatory Background
The Department of Labor considers that current policy concerning the LMRDA section 203(c) “advice exemption” is overbroad and that a narrower application would better allow for the employer and consultant reporting intended by the LMRDA. Current policy is enunciated in the LMRDA Interpretative Manual (265.005) and in a Federal Register notice published in 2001 (66 FR 2782).
Employers are required to report concerning persuader agreements with consultants on the Form LM-10, Employer Report. Consultants are required to report on the Form LM-20, Agreement and Activities Report, and the Form LM-21, Receipts and Disbursement Report. A narrowing of the “advice exemption” would expand the reporting required on these forms.
Planned Action
OLMS plans stakeholder consultation in May 2010 and publication of a notice of proposed rulemaking in November 2010.
