Must a filer report infrequent, insubstantial offers of hospitality, such as coffee and donuts at a meeting, restaurant meals, or gifts at holidays?
A50. No. Under section 203(a) of the LMRDA, employers who make payments to a labor organization or its officials must file a report, subject to multiple exceptions. 29 U.S.C. § 433(a). The Form LM-10 informs filers that they may exclude from their reports “sporadic or occasional gifts, gratuities, or favors of insubstantial value, given under circumstances and terms unrelated to the recipients’ status in a labor organization.” Form LM-10 Instructions, Part A, Item 8.a. This test has been referred to as a “de minimis exemption.” If the test is satisfied, the filer need not report the gift or gratuity on Form LM-10. If the test is not satisfied, the gift or gratuity must be reported on Form LM-10. For the de minimis exemption to be available, the gift or gratuity must be “insubstantial.” Consistent with the recent guidance for union officer and employee reporting on Form LM-30, gifts and gratuities with an aggregate value of $250 or less provided by an employer will be considered insubst
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