Department Of Labor Scales Back Financial Oversight Of Unions

Roetzel & Andress

Last week, the Department of Labor (DOL) scaled back its financial oversight of unions. Under the Trump Administration Rule, unions had to report strike fund, apprenticeship program and other “trust fund” information to the DOL. The Trump Administration viewed the Rule as anti-corruption (member and public protection, citing recent criminal convictions of UAW leaders) and anti-malfeasance (union self-protection).

Last week, the DOL moved to end the Trump Rule. First, while the Rule still exists, the Biden Administration DOL announced it will not be enforced. Second, the DOL will start procedural steps to formally rescind the Rule. A DOL official explained the moves: (1) The Rule may not be legal; (2) the Rule’s burden’s likely outweigh any benefits; and (3) the DOL has better things to do with its resources.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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