Labor Department's OLMS Director Warns About 'Criminals' In Labor Relations
A longstanding bar of criminals working in unions, or as consultants for employers, is explained in a new OLMS post.
By Peter List, Editor | June 3, 2024
Since its inception, the labor relations world has had its share of challenges, including the presence of some unsavory characters. However, a significant turning point came in 1959 when it became unlawful for unions and employers to hire individuals convicted of certain crimes. The head of the agency responsible for enforcing this law is now issuing a poignant reminder about it.
Last week, Jeffrey Freund, the Director of the Department of Labor’s Office of Labor-Management Standards (OLMS), issued a blog post about the Labor-Management Reporting and Disclosure Act’s Section 504, which bars “any person who has been convicted of committing a crime described in that section from holding a position of responsibility in the labor relations world for 13 years following their conviction or from the end of their imprisonment, whichever is later.”
In his post (in full here), Director Freund clarifies that the bar of persons convicted of crimes doesn’t just apply to unions and to union officers and employees, but “to employer representatives who are engaged in labor relations work and to the unions and employers who employ them.” [Emphasis added.]
“To bring teeth to the bar under these circumstances,” Freund writes, “Section 504 makes clear that not only is a convicted person prohibited from serving in one of these positions, it is a felony for anyone to ‘knowingly hire, retain, employ, or otherwise place any other person to serve in any capacity in violation’ of the 504 bar.” [Emphasis added.]
Though Director Freund does not say so explicitly, and he makes no mention of Section 504’s reference to members of the Communist Party, his post appears to be directed towards employers and their consultants.
[Read Director Freund’s post in full here.]
Here is the full text of Section 504 of the Labor Management Reporting and Disclosure Act of 1959 [emphasis in the original]:
SEC. 504. (a) No person who is or has been a member of the Communist Party or who has been convicted of, or served any part of a prison term resulting from his conviction of, robbery, bribery, extortion, embezzlement, grand larceny, burglary, arson, violation of narcotics laws, murder, rape, assault with intent to kill, assault which inflicts grievous bodily injury, or a violation of title II or III of this Act, any felony involving abuse or misuse of such person's position or employment in a labor organization or employee benefit plan to seek or obtain an illegal gain at the expense of the members of the labor organization or the beneficiaries of the employee benefit plan, or conspiracy to commit any such crimes or attempt to commit any such crimes, or a crime in which any of the foregoing crimes is an element, shall serve or be permitted to serve -
as a consultant or adviser to any labor organization,
as an officer, director, trustee, member of any executive board or similar governing body, business agent, manager, organizer, employee, or representative in any capacity of any labor organization,
as a labor relations consultant or adviser to a person engaged in an industry or activity affecting commerce, or as an officer, director, agent, or employee of any group or association of employers dealing with any labor organization, or in a position having specific collective bargaining authority or direct responsibility in the area of labor-management relations in any corporation or association engaged in an industry or activity affecting commerce, or
in a position which entitles its occupant to a share of the proceeds of, or as an officer or executive or administrative employee of, any entity whose activities are in whole or substantial part devoted to providing goods or services to any labor organization, or
in any capacity, other than in his capacity as a member of such labor organization, that involves decisionmaking authority concerning, or decisionmaking authority over, or custody of, or control of the moneys, funds, assets, or property of any labor organization,
during or for the period of thirteen years after such conviction or after the end of such imprisonment, whichever is later, unless the sentencing court on the motion of the person convicted sets a lesser period of at least three years after such conviction or after the end of such imprisonment, whichever is later, or unless prior to the end of such period, in the case of a person so convicted or imprisoned,
his citizenship rights, having been revoked as a result of such conviction, have been fully restored, or
if the offense is a Federal offense, the sentencing judge or, if the offense is a State or local offense, the United States district court for the district in which the offense was committed, pursuant to sentencing guidelines and policy statements under section 994(a) of title 28, United States Code, determines that such person's service in any capacity referred to in clauses (1) through (5) would not be contrary to the purposes of this Act. Prior to making any such determination the court shall hold a hearing and shall give notice of such proceeding by certified mail to the Secretary of Labor and to State, county, and Federal prosecuting officials in the jurisdiction or jurisdictions in which such person was convicted. The court's determination in any such proceeding shall be final. No person shall knowingly hire, retain, employ, or otherwise place any other person to serve in any capacity in violation of this subsection.
(b) Any person who willfully violates this section shall be fined not more than $10,000 or imprisoned for not more than five years, or both.