Labor relations and the truth about section 504

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Labor relations and the truth about section 504

"Scales

 

In the labor relations world, most people know about the Office of Labor-Management Standard's role enforcing the Labor-Management Reporting and Disclosure Act and advancing its mandate of promoting union democracy, financial transparency and integrity. But not everyone understands Section 504, an important part of the act designed to advance those goals by keeping people out of the labor relations world who have been convicted of certain crimes.

Section 504 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. Here are some common misconceptions about Section 504 and the facts.

Myth #1: Section 504 applies only to unions and to union officers and employees.

Fact: Section 504 is not limited to unions and union officers and employees. It bars any person convicted of a crime described in the statute from holding a position in the field of labor relations; that is, it applies equally to union officers and employees and to employer representatives who are engaged in labor relations work and to the unions and employers who employ them.

Myth #2: Section 504 applies only to persons who are convicted of crimes while holding a position in a union, or in labor-management as an employer or consultant.

Fact: Section 504 is not limited to crimes committed while serving in a union or employer/consultant position. Anyone convicted of one of the crimes in the statute – no matter where they were employed at the time – is automatically barred from serving in one of the enumerated positions. If they are serving in such a position when convicted, they must be removed. But even if not, they are immediately and automatically barred from accepting such a position in the future during the period of the bar.

To bring teeth to the bar under these circumstances, 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.

Myth #3: OLMS decides whether a conviction is for a crime covered by the statutory bar.

Fact: OLMS is the agency charged with advising a court on whether a bar applies to a particular conviction, but as a general practice, we rely on the Department of Justice’s view on that issue. While we do not consult with DOJ in every case, as we have a repository of experience regarding DOJ’s views on various crimes, in those cases where OLMS has no prior experience and where the answer is not self-evident, we consult with and rely on DOJ’s opinion.

Myth #4: OLMS always opposes efforts by barred persons to obtain relief from the bar.

Fact: Section 504 permits the state or federal sentencing court, at the request of a barred person, to reduce the automatic 13-year bar to a shorter period (but not to less than three years following the disqualifying conviction or end of resulting imprisonment, whichever is later). A court considering that request is required to give notice to the secretary of labor and the federal or state prosecuting attorney. When OLMS receives a notice, we conduct a thorough and independent investigation, evaluating fully the specific details of each situation – then provide the court with a recommendation on whether to lift the bar.

A critical part of our decision is assessing whether the petitioner has been “rehabilitated” and is not likely a threat to the integrity of the labor-management process. The court may – but is not required to – grant the requested relief. Sometimes the barred person asks for a general reduction of the bar. Sometimes they ask for relief from the bar to hold a particular position. Over the last 10 years, OLMS has not objected to the requested relief from about 50% of the time.

Ultimately, Section 504 helps safeguard the integrity of the labor-management relations process. OLMS has recently updated its fact sheet on Section 504. Learn more about the LMRDA and other laws and regulations that we enforce, find compliance assistance resources, search labor-management reports and more at dol.gov/olms.

Jeffrey Freund is the director of the Department of Labor’s Office of Labor-Management Standards.

 

Koebel.Tiffany…
Tue, 05/28/2024 – 09:37

"Scales

Jeffrey Freund

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