When it comes to labor law, most employers are familiar with the NLRA or the Taft-Hartley Act. But another important law often flies under the radar: the Labor-Management Reporting and Disclosure Act (LMRDA), passed in 1959.
Also known as the Landrum-Griffin Act, the LMRDA was designed to bring more accountability and transparency to unions. While it primarily regulates union conduct, employers should understand it too—especially those with unionized workforces.
Why the LMRDA was created
In the 1950s, concerns grew about corruption, undemocratic practices, and misuse of funds within some unions. Congress passed the LMRDA to:
- Protect union members’ rights
- Promote democratic practices within unions
- Increase transparency in union finances
- Prevent abuse of power by union leaders
What the LMRDA covers
The LMRDA sets out several major protections and requirements:
- Union member rights: A “Bill of Rights” for union members, including free speech, equal voting rights, and safeguards against improper discipline.
- Union elections: Requires regular, democratic elections for union officers, supervised by the Department of Labor if necessary.
- Financial transparency: Unions must file detailed financial reports (Form LM) with the DOL to show how funds are spent.
- Safeguards for union funds: Strong penalties for misuse or embezzlement of union money.
- Reporting requirements for employers: Employers must report certain payments, loans, or arrangements made with unions, particularly if they could be seen as influencing union activity.
- Restrictions on certain officials: People convicted of specific crimes are barred from holding union office for a period of time.
Who enforces the LMRDA
The law is enforced by the U.S. Department of Labor’s Office of Labor-Management Standards (OLMS). The OLMS investigates complaints, oversees union elections when necessary, and ensures financial reporting requirements are met.
Why the LMRDA matters to employers
Even though the LMRDA is aimed at unions, employers need to pay attention too. Here’s why:
- Reporting obligations: Employers must file reports if they make payments to unions, union officials, or labor relations consultants in connection with union activity.
- Union relationships: If your workforce is unionized, you should understand your employees’ rights under the LMRDA, since violations can fuel disputes.
- Legal exposure: Employers who try to influence union affairs in ways restricted by the LMRDA may face penalties.
Common mistakes employers make
- Forgetting to file reports when working with labor consultants during union campaigns
- Assuming financial or election irregularities within unions don’t affect them (they can lead to labor unrest)
- Overstepping boundaries in trying to influence union governance or leadership
- Failing to educate managers on employee and union rights under the law
How to stay compliant
- Know your reporting obligations – If you work with union consultants, review whether LM-10 reports are required.
- Keep relationships transparent – Avoid under-the-table arrangements with unions or union officials.
- Train leadership – Ensure managers know the boundaries when dealing with unions.
- Stay informed – If your workforce is unionized, understand how the LMRDA affects your employees’ rights.
- Work with experts – Compliance is easier with guidance from HR and labor law professionals.
How Kubera HR Solutions can help
At Kubera HR Solutions, we help employers navigate union-related compliance, including reporting obligations under the LMRDA. From reviewing consultant agreements to training managers, our goal is to keep your business compliant and protected.