81 FR 20245 - Interpretation of the “Advice” Exemption in Section 203(c) of the Labor-Management Reporting and Disclosure Act
DEPARTMENT OF LABOR
Office of Labor-Management Standards Federal Register Volume 81, Issue 67 (April 7, 2016)
Office of Labor-Management Standards
Federal Register Volume 81, Issue 67 (April 7, 2016)
| Page Range | 20245-20246 | |
| FR Document | 2016-07883 |
[Federal Register Volume 81, Number 67 (Thursday, April 7, 2016)] [Rules and Regulations] [Pages 20245-20246] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-07883] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF LABOR Office of Labor-Management Standards 29 CFR Parts 405 and 406 RIN 1215-AB79; 1245-AA03 Interpretation of the ``Advice'' Exemption in Section 203(c) of the Labor-Management Reporting and Disclosure Act AGENCY: Office of Labor-Management Standards, Department of Labor. ACTION: Final rule; OMB approval of information collection requirements. ----------------------------------------------------------------------- [[Page 20246]] SUMMARY: The Office of Labor-Management Standards of the Department of Labor (``Department'') published a final rule on March 24, 2016. The final rule revises the Form LM-20 Agreement and Activities Report and the Form LM-10 Employer Report, which are filed with the Department pursuant to the Labor-Management Reporting and Disclosure Act (LMRDA). In the final rule, the Department revises its interpretation of the advice exemption in section 203(c) of the LMRDA to better effectuate section 203's requirement that employers and their labor relations consultants report activities undertaken with an object, directly or indirectly, to persuade employees about how to exercise their rights to union representation and collective bargaining. The revised interpretation provides employees with important information that would enable them to consider the source of the information about union representation directed at them when assessing the merits of the arguments and deciding how to exercise their rights. The Department has also revised the forms and instructions to make them more user-friendly and to require more detailed reporting on employer and consultant agreements. Additionally, with this rule, the Department requires that Forms LM-10 and LM-20 be filed electronically. In accordance with the Paperwork Reduction Act (PRA), the Department of Labor announces that the Office of Management and Budget has approved the information collection requirements contained in the final rule. DATES: On March 25, 2016, the Office of Management and Budget (OMB) approved under the Paperwork Reduction Act the Department of Labor's information collection request for requirements in 29 CFR parts 402-406 and 408-409, including the employer and labor relations consultant reporting requirements in Parts 405 and 406, as published in the Federal Register on March 24, 2016. See 81 FR 15924. The current expiration date for OMB authorization for this information collection is March 31, 2019. FOR FURTHER INFORMATION CONTACT: Andrew R. Davis, Chief, Division of Interpretations and Standards, Office of Labor-Management Standards, U.S. Department of Labor, at (202) 693-0123 (this is not a toll-free number). This document is available through the printed Federal Register and electronically via the http://www.gpoaccess.gov/fr/index.html Web site. Copies of this document may be obtained in alternative formats (Large Print, Braille, Audio Tape or Disc), upon request, by calling (202) 693-0023 (not a toll-free number). TTY/TDD callers may dial toll- free (877) 889-5627 to obtain information or request materials in alternative formats. SUPPLEMENTARY INFORMATION: Congress enacted the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA), to provide for the disclosure of information on the financial transactions and administrative practices of labor organizations. The statute also provides, under certain circumstances, for reporting by labor organization officers and employees, employers, labor relations consultants, and surety companies. Section 208 of the LMRDA authorizes the Secretary to issues rules and regulations prescribing the form of the required reports. The reporting provisions were devised to implement basic tenets of the LMRDA: To protect the rights of employees to organize and bargain collectively, as well as the guarantee of democratic procedures and safeguards within labor organizations, which are designed to protect the basic rights of union members. Section 205 of the LMRDA provides that the reports are public information. On March 24, 2016, the Department published a final rule that revised the Form LM-20 Agreement and Activities Report and the Form LM- 10 Employer Report. See 81 FR 15924. The final rule was based upon comments received in a Notice of Proposed Rulemaking (``NPRM'') published on June 21, 2011. See 76 FR 37292. In the NPRM, the Department proposed to revise its interpretation of the advice exemption in section 203(c) of the LMRDA to better effectuate section 203's requirement that employers and their labor relations consultants report activities undertaken with an object, directly or indirectly, to persuade employees about how to exercise their rights to union representation and collective bargaining. Under the prior interpretation, reporting was effectively triggered only when a consultant communicated directly with employees. This interpretation left a broad category of persuader activities unreported, thereby denying employees important information that would enable them to consider the source of the information about union representation directed at them when assessing the merits of the arguments and deciding how to exercise their rights. The Department proposed to eliminate this reporting gap. The final rule adopts the proposed rule, with modifications, and provides increased transparency to workers without imposing any restraints on the content, timing, or method by which an employer chooses to make known to its employees its position on matters relating to union representation or collective bargaining. The final rule also maintains the LMRDA's section 203(c) advice exemption and the traditional privileges and disclosure requirements associated with the attorney-client relationship. The Department has also revised the forms and instructions to make them more user-friendly and to require more detailed reporting on employer and consultant agreements. Sections of the Department's regulations have also been amended consistent with the instructions. Additionally, with this rule, the Department requires that Forms LM-10 and LM-20 be filed electronically. This rule largely implements the Department's proposal in the NPRM, with modifications of several aspects of the revised instructions as proposed. The Department's final rule includes information collection requirements subject to the Paperwork Reduction Act. Specifically, the final rule requires information collections for employers on the Form LM-10 Employer Report and labor relations consultants on the Form LM-20 Agreement and Activities Report, pursuant to LMRDA section 203, 29 U.S.C. 433. These forms are included, along with the other LMRDA forms, within OMB Control Number 1245-0003. As discussed in the preamble to the final rule, the Department submitted the information collections contained therein to the Office of Management and Budget (OMB) on February 25, 2016 for approval. See 81 FR 16003. On March 25, 2016, OMB approved the Department's information collection request under Control Number 1245-0003, thus giving effect to the information collection requirements contained in the final rule published in the Federal Register on March 24, 2016. The current expiration date for OMB authorization for this information collection is March 31, 2019. Dated: March 30, 2016. Michael J. Hayes, Director, Office of Labor-Management Standards. [FR Doc. 2016-07883 Filed 4-6-16; 8:45 am] BILLING CODE 4510-CP-P
![20246 Federal Register / Vol. 81, No. 67 / Thursday, April 7, 2016 / Rules and Regulations
SUMMARY: The Office of Labor- Print, Braille, Audio Tape or Disc), upon imposing any restraints on the content,
Management Standards of the request, by calling (202) 693–0023 (not timing, or method by which an
Department of Labor (‘‘Department’’) a toll-free number). TTY/TDD callers employer chooses to make known to its
published a final rule on March 24, may dial toll-free (877) 889–5627 to employees its position on matters
2016. The final rule revises the Form obtain information or request materials relating to union representation or
LM–20 Agreement and Activities Report in alternative formats. collective bargaining. The final rule also
and the Form LM–10 Employer Report, SUPPLEMENTARY INFORMATION: Congress maintains the LMRDA’s section 203(c)
which are filed with the Department enacted the Labor-Management advice exemption and the traditional
pursuant to the Labor-Management Reporting and Disclosure Act of 1959 privileges and disclosure requirements
Reporting and Disclosure Act (LMRDA). (LMRDA), to provide for the disclosure associated with the attorney-client
In the final rule, the Department revises of information on the financial relationship. The Department has also
its interpretation of the advice transactions and administrative revised the forms and instructions to
exemption in section 203(c) of the practices of labor organizations. The make them more user-friendly and to
LMRDA to better effectuate section statute also provides, under certain require more detailed reporting on
203’s requirement that employers and circumstances, for reporting by labor
their labor relations consultants report employer and consultant agreements.
organization officers and employees, Sections of the Department’s regulations
activities undertaken with an object, employers, labor relations consultants,
directly or indirectly, to persuade have also been amended consistent with
and surety companies. Section 208 of
employees about how to exercise their the instructions. Additionally, with this
the LMRDA authorizes the Secretary to
rights to union representation and rule, the Department requires that
issues rules and regulations prescribing
collective bargaining. The revised the form of the required reports. The Forms LM–10 and LM–20 be filed
interpretation provides employees with reporting provisions were devised to electronically. This rule largely
important information that would implement basic tenets of the LMRDA: implements the Department’s proposal
enable them to consider the source of To protect the rights of employees to in the NPRM, with modifications of
the information about union organize and bargain collectively, as several aspects of the revised
representation directed at them when well as the guarantee of democratic instructions as proposed.
assessing the merits of the arguments procedures and safeguards within labor The Department’s final rule includes
and deciding how to exercise their organizations, which are designed to information collection requirements
rights. The Department has also revised protect the basic rights of union subject to the Paperwork Reduction Act.
the forms and instructions to make them members. Section 205 of the LMRDA Specifically, the final rule requires
more user-friendly and to require more provides that the reports are public information collections for employers
detailed reporting on employer and information. on the Form LM–10 Employer Report
consultant agreements. Additionally, On March 24, 2016, the Department and labor relations consultants on the
with this rule, the Department requires published a final rule that revised the
that Forms LM–10 and LM–20 be filed Form LM–20 Agreement and Activities
Form LM–20 Agreement and Activities Report, pursuant to LMRDA section 203,
electronically. In accordance with the Report and the Form LM–10 Employer
Paperwork Reduction Act (PRA), the 29 U.S.C. 433. These forms are
Report. See 81 FR 15924. The final rule
Department of Labor announces that the included, along with the other LMRDA
was based upon comments received in
Office of Management and Budget has forms, within OMB Control Number
a Notice of Proposed Rulemaking
approved the information collection (‘‘NPRM’’) published on June 21, 2011. 1245–0003. As discussed in the
requirements contained in the final rule. See 76 FR 37292. In the NPRM, the preamble to the final rule, the
DATES: On March 25, 2016, the Office of Department proposed to revise its Department submitted the information
Management and Budget (OMB) interpretation of the advice exemption collections contained therein to the
approved under the Paperwork in section 203(c) of the LMRDA to better Office of Management and Budget
Reduction Act the Department of effectuate section 203’s requirement that (OMB) on February 25, 2016 for
Labor’s information collection request employers and their labor relations approval. See 81 FR 16003. On March
for requirements in 29 CFR parts 402– consultants report activities undertaken 25, 2016, OMB approved the
406 and 408–409, including the with an object, directly or indirectly, to Department’s information collection
employer and labor relations consultant persuade employees about how to request under Control Number 1245–
reporting requirements in Parts 405 and exercise their rights to union 0003, thus giving effect to the
406, as published in the Federal representation and collective information collection requirements
Register on March 24, 2016. See 81 FR bargaining. Under the prior contained in the final rule published in
15924. The current expiration date for interpretation, reporting was effectively the Federal Register on March 24, 2016.
OMB authorization for this information triggered only when a consultant The current expiration date for OMB
collection is March 31, 2019. communicated directly with employees. authorization for this information
FOR FURTHER INFORMATION CONTACT: This interpretation left a broad category collection is March 31, 2019.
Andrew R. Davis, Chief, Division of of persuader activities unreported,
Dated: March 30, 2016.
Interpretations and Standards, Office of thereby denying employees important
Labor-Management Standards, U.S. information that would enable them to Michael J. Hayes,
Department of Labor, at (202) 693–0123 consider the source of the information Director, Office of Labor-Management
(this is not a toll-free number). about union representation directed at Standards.
This document is available through them when assessing the merits of the [FR Doc. 2016–07883 Filed 4–6–16; 8:45 am]
Lhorne on DSK5TPTVN1PROD with RULES
the printed Federal Register and arguments and deciding how to exercise BILLING CODE 4510–CP–P
electronically via the http:// their rights. The Department proposed
www.gpoaccess.gov/fr/index.html Web to eliminate this reporting gap. The final
site. rule adopts the proposed rule, with
Copies of this document may be modifications, and provides increased
obtained in alternative formats (Large transparency to workers without
VerDate Sep<11>2014 15:09 Apr 06, 2016 Jkt 238001 PO 00000 Frm 00028 Fmt 4700 Sfmt 9990 E:\FR\FM\07APR1.SGM 07APR1](https://thefederalregister.org/doc/81_FR_20312/page/2.svg)
Document Created: 2016-04-06 23:43:43
Document Modified: 2016-04-06 23:43:43
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule; OMB approval of information collection requirements. | |
| Dates | On March 25, 2016, the Office of Management and Budget (OMB) approved under the Paperwork Reduction Act the Department of Labor's information collection request for requirements in 29 CFR parts 402-406 and 408-409, including the employer and labor relations consultant reporting requirements in Parts 405 and 406, as published in the Federal Register on March 24, 2016. See 81 FR 15924. The current expiration date for OMB authorization for this information collection is March 31, 2019. | |
| Contact | Andrew R. Davis, Chief, Division of Interpretations and Standards, Office of Labor-Management Standards, U.S. Department of Labor, at (202) 693-0123 (this is not a toll-free number). | |
| FR Citation | 81 FR 20245 | |
| RIN Number | 1215-AB79 and 1245-AA03 | |
| CFR Citation | 29
CFR
405 29 CFR 406 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR