The Office of Labor-Management Standards (OLMS) published, on March 6, 2020, a final rule establishing a Form T–1 Trust Annual Report that requires annual reporting by Form LM-2 filing labor organizations on financial information pertinent to “trusts in which a labor organization is interested” (“section 3(l) trusts”). See: https://www.govinfo.gov/content/pkg/FR-2020-03-06/pdf/2020-03958.pdf; see also the correction notice published on March 30, 2020.
The rule requires a labor organization with total annual receipts of $250,000 or more to file a Form T–1, under certain circumstances, for each section 3(l) trust, as defined by 29 U.S.C. § 402(l) of the LMRDA. Under this rule, the Form T-1 reporting requirements are triggered where the labor organization during the reporting period, either alone or in combination with other labor organizations, (1) selects or appoints the majority of the members of the trust’s governing board, or (2) contributes more than 50 percent of the trust’s receipts.
Effective Date: the rule is effective April 6, 2020; however, no labor organization is required to file a Form T-1 until 90 days after the conclusion of its first fiscal year that begins on or after June 4, 2020. A Form T-1 covers a trust’s most recently concluded fiscal year, and a Form T-1 is required only for trusts whose fiscal year begins on or after June 4, 2020. A trust’s “most recently concluded fiscal year” is the fiscal year ending on or before 90 days before the filing union’s fiscal year. Note: OLMS will not seek to enforce the filing of a Form T-1 for one year from the date a labor organization’s first Form T-1 is due. Please see the OLMS Form T-1 filing advisory.
How to File: Filers must submit the Form T-1 electronically to OLMS via the OLMS Electronic Forms System (EFS). OLMS will make the electronic form available to filers beginning on January 1, 2022.
For Further Information: View the Form T-1 and Instructions, as well as the Form T-1 Compliance Tip, or contact Andrew R. Davis, Chief of the Division of Interpretations and Standards, Office of Labor-Management Standards, U.S. Department of Labor, 200 Constitution Avenue N.W., Room N-5609, Washington, DC 20210, olms-public@dol.gov, (202) 693-0123 (this is not a toll-free number), (800) 877-8339 (TTY/TDD).
Last Updated: 3-29-21