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CITE

    29 USC Sec. 186                                             01/05/2009

EXPCITE

    TITLE 29 - LABOR
    CHAPTER 7 - LABOR-MANAGEMENT RELATIONS
    SUBCHAPTER IV - LIABILITIES OF AND RESTRICTIONS ON LABOR AND
                     MANAGEMENT

HEAD

    Sec. 186. Restrictions on financial transactions

STATUTE

    (a) Payment or lending, etc., of money by employer or agent to
      employees, representatives, or labor organizations
      It shall be unlawful for any employer or association of employers
    or any person who acts as a labor relations expert, adviser, or
    consultant to an employer or who acts in the interest of an
    employer to pay, lend, or deliver, or agree to pay, lend, or
    deliver, any money or other thing of value -
        (1) to any representative of any of his employees who are
      employed in an industry affecting commerce; or
        (2) to any labor organization, or any officer or employee
      thereof, which represents, seeks to represent, or would admit to
      membership, any of the employees of such employer who are
      employed in an industry affecting commerce; or
        (3) to any employee or group or committee of employees of such
      employer employed in an industry affecting commerce in excess of
      their normal compensation for the purpose of causing such
      employee or group or committee directly or indirectly to
      influence any other employees in the exercise of the right to
      organize and bargain collectively through representatives of
      their own choosing; or
        (4) to any officer or employee of a labor organization engaged
      in an industry affecting commerce with intent to influence him in
      respect to any of his actions, decisions, or duties as a
      representative of employees or as such officer or employee of
      such labor organization.
    (b) Request, demand, etc., for money or other thing of value
      (1) It shall be unlawful for any person to request, demand,
    receive, or accept, or agree to receive or accept, any payment,
    loan, or delivery of any money or other thing of value prohibited
    by subsection (a) of this section.
      (2) It shall be unlawful for any labor organization, or for any
    person acting as an officer, agent, representative, or employee of
    such labor organization, to demand or accept from the operator of
    any motor vehicle (as defined in section 13102 of title 49)
    employed in the transportation of property in commerce, or the
    employer of any such operator, any money or other thing of value
    payable to such organization or to an officer, agent,
    representative or employee thereof as a fee or charge for the
    unloading, or in connection with the unloading, of the cargo of
    such vehicle: Provided, That nothing in this paragraph shall be
    construed to make unlawful any payment by an employer to any of his
    employees as compensation for their services as employees.
    (c) Exceptions
      The provisions of this section shall not be applicable (1) in
    respect to any money or other thing of value payable by an employer
    to any of his employees whose established duties include acting
    openly for such employer in matters of labor relations or personnel
    administration or to any representative of his employees, or to any
    officer or employee of a labor organization, who is also an
    employee or former employee of such employer, as compensation for,
    or by reason of, his service as an employee of such employer; (2)
    with respect to the payment or delivery of any money or other thing
    of value in satisfaction of a judgment of any court or a decision
    or award of an arbitrator or impartial chairman or in compromise,
    adjustment, settlement, or release of any claim, complaint,
    grievance, or dispute in the absence of fraud or duress; (3) with
    respect to the sale or purchase of an article or commodity at the
    prevailing market price in the regular course of business; (4) with
    respect to money deducted from the wages of employees in payment of
    membership dues in a labor organization: Provided, That the
    employer has received from each employee, on whose account such
    deductions are made, a written assignment which shall not be
    irrevocable for a period of more than one year, or beyond the
    termination date of the applicable collective agreement, whichever
    occurs sooner; (5) with respect to money or other thing of value
    paid to a trust fund established by such representative, for the
    sole and exclusive benefit of the employees of such employer, and
    their families and dependents (or of such employees, families, and
    dependents jointly with the employees of other employers making
    similar payments, and their families and dependents): Provided,
    That (A) such payments are held in trust for the purpose of paying,
    either from principal or income or both, for the benefit of
    employees, their families and dependents, for medical or hospital
    care, pensions on retirement or death of employees, compensation
    for injuries or illness resulting from occupational activity or
    insurance to provide any of the foregoing, or unemployment benefits
    or life insurance, disability and sickness insurance, or accident
    insurance; (B) the detailed basis on which such payments are to be
    made is specified in a written agreement with the employer, and
    employees and employers are equally represented in the
    administration of such fund, together with such neutral persons as
    the representatives of the employers and the representatives of
    employees may agree upon and in the event the employer and employee
    groups deadlock on the administration of such fund and there are no
    neutral persons empowered to break such deadlock, such agreement
    provides that the two groups shall agree on an impartial umpire to
    decide such dispute, or in event of their failure to agree within a
    reasonable length of time, an impartial umpire to decide such
    dispute shall, on petition of either group, be appointed by the
    district court of the United States for the district where the
    trust fund has its principal office, and shall also contain
    provisions for an annual audit of the trust fund, a statement of
    the results of which shall be available for inspection by
    interested persons at the principal office of the trust fund and at
    such other places as may be designated in such written agreement;
    and (C) such payments as are intended to be used for the purpose of
    providing pensions or annuities for employees are made to a
    separate trust which provides that the funds held therein cannot be
    used for any purpose other than paying such pensions or annuities;
    (6) with respect to money or other thing of value paid by any
    employer to a trust fund established by such representative for the
    purpose of pooled vacation, holiday, severance or similar benefits,
    or defraying costs of apprenticeship or other training programs:
    Provided, That the requirements of clause (B) of the proviso to
    clause (5) of this subsection shall apply to such trust funds; (7)
    with respect to money or other thing of value paid by any employer
    to a pooled or individual trust fund established by such
    representative for the purpose of (A) scholarships for the benefit
    of employees, their families, and dependents for study at
    educational institutions, (B) child care centers for preschool and
    school age dependents of employees, or (C) financial assistance for
    employee housing: Provided, That no labor organization or employer
    shall be required to bargain on the establishment of any such trust
    fund, and refusal to do so shall not constitute an unfair labor
    practice: Provided further, That the requirements of clause (B) of
    the proviso to clause (5) of this subsection shall apply to such
    trust funds; (8) with respect to money or any other thing of value
    paid by any employer to a trust fund established by such
    representative for the purpose of defraying the costs of legal
    services for employees, their families, and dependents for counsel
    or plan of their choice: Provided, That the requirements of clause
    (B) of the proviso to clause (5) of this subsection shall apply to
    such trust funds: Provided further, That no such legal services
    shall be furnished: (A) to initiate any proceeding directed (i)
    against any such employer or its officers or agents except in
    workman's compensation cases, or (ii) against such labor
    organization, or its parent or subordinate bodies, or their
    officers or agents, or (iii) against any other employer or labor
    organization, or their officers or agents, in any matter arising
    under subchapter II of this chapter or this chapter; and (B) in any
    proceeding where a labor organization would be prohibited from
    defraying the costs of legal services by the provisions of the
    Labor-Management Reporting and Disclosure Act of 1959 [29 U.S.C.
    401 et seq.]; or (9) with respect to money or other things of value
    paid by an employer to a plant, area or industrywide labor
    management committee established for one or more of the purposes
    set forth in section 5(b) of the Labor Management Cooperation Act
    of 1978.
    (d) Penalties for violations
      (1) Any person who participates in a transaction involving a
    payment, loan, or delivery of money or other thing of value to a
    labor organization in payment of membership dues or to a joint
    labor-management trust fund as defined by clause (B) of the proviso
    to clause (5) of subsection (c) of this section or to a plant,
    area, or industry-wide labor-management committee that is received
    and used by such labor organization, trust fund, or committee,
    which transaction does not satisfy all the applicable requirements
    of subsections (c)(4) through (c)(9) of this section, and willfully
    and with intent to benefit himself or to benefit other persons he
    knows are not permitted to receive a payment, loan, money, or other
    thing of value under subsections (c)(4) through (c)(9) violates
    this subsection, shall, upon conviction thereof, be guilty of a
    felony and be subject to a fine of not more than $15,000, or
    imprisoned for not more than five years, or both; but if the value
    of the amount of money or thing of value involved in any violation
    of the provisions of this section does not exceed $1,000, such
    person shall be guilty of a misdemeanor and be subject to a fine of
    not more than $10,000, or imprisoned for not more than one year, or
    both.
      (2) Except for violations involving transactions covered by
    subsection (d)(1) of this section, any person who willfully
    violates this section shall, upon conviction thereof, be guilty of
    a felony and be subject to a fine of not more than $15,000, or
    imprisoned for not more than five years, or both; but if the value
    of the amount of money or thing of value involved in any violation
    of the provisions of this section does not exceed $1,000, such
    person shall be guilty of a misdemeanor and be subject to a fine of
    not more than $10,000, or imprisoned for not more than one year, or
    both.
    (e) Jurisdiction of courts
      The district courts of the United States and the United States
    courts of the Territories and possessions shall have jurisdiction,
    for cause shown, and subject to the provisions of section 381 of
    title 28 (relating to notice to opposite party) to restrain
    violations of this section, without regard to the provisions of
    section 17 of title 15 and section 52 of this title, and the
    provisions of chapter 6 of this title.
    (f) Effective date of provisions
      This section shall not apply to any contract in force on June 23,
    1947, until the expiration of such contract, or until July 1, 1948,
    whichever first occurs.
    (g) Contributions to trust funds
      Compliance with the restrictions contained in subsection
    (c)(5)(B) of this section upon contributions to trust funds,
    otherwise lawful, shall not be applicable to contributions to such
    trust funds established by collective agreement prior to January 1,
    1946, nor shall subsection (c)(5)(A) of this section be construed
    as prohibiting contributions to such trust funds if prior to
    January 1, 1947, such funds contained provisions for pooled
    vacation benefits.

SOURCE

    (June 23, 1947, ch. 120, title III, Sec. 302, 61 Stat. 157; Pub. L.
    86-257, title V, Sec. 505, Sept. 14, 1959, 73 Stat. 537; Pub. L. 91-
    86, Oct. 14, 1969, 83 Stat. 133; Pub. L. 93-95, Aug. 15, 1973, 87
    Stat. 314; Pub. L. 95-524, Sec. 6(d), Oct. 27, 1978, 92 Stat. 2021;
    Pub. L. 98-473, title II, Sec. 801, Oct. 12, 1984, 98 Stat. 2131;
    Pub. L. 101-273, Sec. 1, Apr. 18, 1990, 104 Stat. 138; Pub. L. 104-
    88, title III, Sec. 337, Dec. 29, 1995, 109 Stat. 954.)

REFERENCES IN TEXT

      The Labor-Management Reporting and Disclosure Act of 1959,
    referred to in subsec. (c)(8), is Pub. L. 86-257, Sept. 14, 1959,
    73 Stat. 519, as amended, which is classified principally to
    chapter 11 (Sec. 401 et seq.) of this title. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 401 of this title and Tables.
      Section 5(b) of the Labor Management Cooperation Act of 1978,
    referred to in subsec. (c)(9), probably means section 6(b) of Pub.
    L. 95-524, which is set out as a note under section 175a of this
    title.
      Section 381 of title 28, referred to in subsec. (e), was omitted
    from the revision of Title 28, Judiciary and Judicial Procedure, by
    act June 25, 1948, ch. 646, 62 Stat. 869. See rule 65 of Federal
    Rules of Civil Procedure set out in the Appendix to Title 28.
      Chapter 6 (Sec. 101 et seq.) of this title, referred to in
    subsec. (e), is a reference to act Mar. 23, 1932, ch. 90, 47 Stat.
    70, popularly known as the Norris-LaGuardia Act.

AMENDMENTS

      1995 - Subsec. (b)(2). Pub. L. 104-88 substituted "(as defined in
    section 13102 of title 49)" for "(as defined in part II of the
    Interstate Commerce Act)".
      1990 - Subsec. (c)(7)(C). Pub. L. 101-273 added subcl. (C).
      1984 - Subsec. (d). Pub. L. 98-473, in amending subsec. (d)
    generally, added par. (1), designated existing provisions as par.
    (2), inserted reference to par. (1), and inserted provisions
    relating to commission of a felony.
      1978 - Subsec. (c)(9). Pub. L. 95-524 added cl. (9).
      1973 - Subsec. (c)(8). Pub. L. 93-95 added cl. (8).
      1969 - Subsec. (c)(7). Pub. L. 91-86 added cl. (7).
      1959 - Subsec. (a). Pub. L. 86-257 amended subsec. (a) generally.
    Prior to amendment subsec. (a) read as follows: "It shall be
    unlawful for any employer to pay or deliver, or to agree to pay or
    deliver, any money or other thing of value to any representative of
    any of his employees who are employed in an industry affecting
    commerce."
      Subsec. (b). Pub. L. 86-257 amended subsec. (b) generally. Prior
    to amendment subsec. (b) read as follows: "It shall be unlawful for
    any representative of any employees who are employed in an industry
    affecting commerce to receive or accept, or to agree to receive or
    accept, from the employer of such employees any money or other
    thing of value."
      Subsec. (c). Pub. L. 86-257 substituted "in respect to any money
    or other thing of value payable by an employer to any of his
    employees whose established duties include acting openly for such
    employer in matters of labor relations or personnel administration
    or to any representative of his employees, or to any officer or
    employee of a labor organization, who is also an employee or former
    employee of such employer, as compensation for, or by reason of,
    his service as an employee of such employer" for "with respect to
    any money or other thing of value payable by an employer to any
    representative who is an employee or former employee of such
    employer, as compensation for, or by reason of, his services as an
    employee of such employer" in cl. (1), and added cl. (6).
                     EFFECTIVE DATE OF 1995 AMENDMENT
      Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2
    of Pub. L. 104-88, set out as an Effective Date note under section
    701 of Title 49, Transportation.
             APPLICABILITY TO COLLECTIVE BARGAINING AGREEMENTS
      Amendment by Pub. L. 95-524 not to affect terms and conditions of
    any collective bargaining agreement whether in effect prior to or
    entered into after Oct. 27, 1978, see section 6(e) of Pub. L. 95-
    524, set out as an Effective Date note under section 175a of this
    title.
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