Can a labor organization make a loan to an officer or employee of the labor organization for an amount that exceeds $2,000?
A. No. Section 503(a) of the LMRDA (29 U.S.C. 503) prohibits labor organizations from making direct or indirect loans to any officer or employee of the labor organization which result in a total indebtedness on the part of such officer or employee to the labor organization in excess of $2,000 at any time.
Related Questions
- As a labor organization officer or employee, what are my responsibilities regarding the accuracy of a submitted Form LM-30 and what are the penalties for a violation of these responsibilities?
- Must a labor organization official report payments from a labor organization that is affiliated with the labor organization in which the officer or employee serves?
- Can a labor organization make a loan to an officer or employee of the labor organization for an amount that exceeds $2,000?
