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OLMS Withdraws Proposed Regulations on LM-2 and LM-3 Forms
The Department of Labor (DOL), Office of Labor-Management Standards (OLMS) released a final rule rescinding the LM-2/LM-3 final rule published in the January 21, 2009 Federal Register. Although the DOL withdrew the January 21 rule, this does not affect a labor union's continuing obligation to file detailed annual financial disclosure reports (Form LM-2). Form LM-3 was not changed by the January 21 rule and the existing form continues in effect.
Background
The Department of Labor's Office of Labor Management Standards (OLMS) has released a notice extending the comment period for the proposed regulations on LM2/LM3 financial disclosure forms. The regulations were issued on April 21, 2009 and originally, the comment period was scheduled to end on May 21, 2009. The new deadline is June 22, 2009.
The notice of proposed rulemaking proposes to withdraw a rule published in the Federal Register on January 21, 2009, pertaining to the filing by labor organizations of the Form LM-2, an annual financial report required by the Labor-Management Reporting and Disclosure Act of 1959, as amended (LMRDA). On February 3, 2009, the Department's Employment Standards Administration (ESA) Office of Labor-Management Standards (OLMS) published a request for comments about issues of law and policy raised by this rule (74 FR 5899), consistent with directions from the new Administration to review all regulations that had not yet become effective. On February 20, 2009, the Department of Labor postponed the effective date of this rule until April 21, 2009, to allow additional time for the Department to review comments received pursuant to the earlier notice, which were due by March 5, 2009, and to permit labor unions to delay development and implementation of costly changes to their accounting and recordkeeping systems and procedures pending this review. A further extension of the rule's effective date and an extension of the rule's applicability date were proposed on March 19, 2009, and the effective date is delayed until October 19, 2009..
Upon consideration of the comments received on questions of law and policy raised by the January 21 rule, the Department proposes its withdrawal, because the rule was issued without an adequate review of the Department's experience under the relatively recent revisions to Form LM-2 in 2003 and because the comments indicate that the Department may have underestimated the increased burden that would be placed on reporting labor organizations by the January 21 rule. Finally, the Department has concluded, based on the comments received, that the provisions related to the revocation of a small union's authorization to file a simpler form because it has been delinquent or deficient in filing that form are not based upon realistic assessments of such a union's ability to file the more complex form and are unlikely to achieve the intended goals of greater transparency and disclosure.Comments must be received on or before May 21, 2009.
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