Are service providers to labor organizations and Taft-Hartley funds agents of a labor organization?
A7(A). A person or entity who is an “employer” under the LMRDA and makes “any payment or loan, direct or indirect, of money or other thing of value (including reimbursed expenses), or any promise or agreement therefore, to any labor organization or officer, agent, shop steward, or other representative of a labor organization, or employee of any labor organization” must file a report, unless a specific exemption is applicable. 29 U.S.C. ยง 433. As a result, by its terms, the statute requires reports of payments from an employer to an agent of a union. Labor unions routinely contract with vendors and service providers. Some of these contracts create an agency relationship. For example, a financial institution may be acting as an agent of a labor organization when carrying out its responsibilities to make investment decisions for the union. The Department has been asked whether employers must report payments to such service providers or vendors that are unrelated to the vendor or service p
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