29 U.S.C. § 186 — Restrictions on financial transactions

Page 58 TITLE 29—LABOR § 185 peaceful and just settlement of the dispute. Each such Board shall be composed of such num- ber of individuals as the Director may deem de- sirable. No member appointed under this section shall have any interest or involvement in the health care institutions or the employee organi- zations involved in the dispute. (b) Compensation of members of Boards of In- quiry (1) Members of any board established under this section who are otherwise employed by the Federal Government shall serve without com- pensation but shall be reimbursed for travel, subsistence, and other necessary expenses in- curred by them in carrying out its duties under this section. (2) Members of any board established under this section who are not subject to paragraph (1) shall receive compensation at a rate prescribed by the Director but not to exceed the daily rate prescribed for GS–18 of the General Schedule under section 5332 of title 5, including travel for each day they are engaged in the performance of their duties under this section and shall be enti- tled to reimbursement for travel, subsistence, and other necessary expenses incurred by them in carrying out their duties under this section. (c) Maintenance of status quo After the establishment of a board under sub- section (a) of this section and for 15 days after any such board has issued its report, no change in the status quo in effect prior to the expira- tion of the contract in the case of negotiations for a contract renewal, or in effect prior to the time of the impasse in the case of an initial bar- gaining negotiation, except by agreement, shall be made by the parties to the controversy. (d) Authorization of appropriations There are authorized to be appropriated such sums as may be necessary to carry out the pro- visions of this section. (June 23, 1947, ch. 120, title II, § 213, as added Pub. L. 93–360, § 2, July 26, 1974, 88 Stat. 396.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on thirtieth day after July 26, 1974, see section 4 of Pub. L. 93–360, set out as a note under section 169 of this title. REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organi- zation and Employees, see section 529 [title I, § 101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5. SUBCHAPTER IV—LIABILITIES OF AND RE- STRICTIONS ON LABOR AND MANAGE- MENT § 185. Suits by and against labor organizations (a) Venue, amount, and citizenship Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations, may be brought in any dis- trict court of the United States having jurisdic- tion of the parties, without respect to the amount in controversy or without regard to the citizenship of the parties. (b) Responsibility for acts of agent; entity for purposes of suit; enforcement of money judg- ments Any labor organization which represents em- ployees in an industry affecting commerce as de- fined in this chapter and any employer whose activities affect commerce as defined in this chapter shall be bound by the acts of its agents. Any such labor organization may sue or be sued as an entity and in behalf of the employees whom it represents in the courts of the United States. Any money judgment against a labor or- ganization in a district court of the United States shall be enforceable only against the or- ganization as an entity and against its assets, and shall not be enforceable against any indi- vidual member or his assets. (c) Jurisdiction For the purposes of actions and proceedings by or against labor organizations in the district courts of the United States, district courts shall be deemed to have jurisdiction of a labor organi- zation (1) in the district in which such organiza- tion maintains its principal office, or (2) in any district in which its duly authorized officers or agents are engaged in representing or acting for employee members. (d) Service of process The service of summons, subpena, or other legal process of any court of the United States upon an officer or agent of a labor organization, in his capacity as such, shall constitute service upon the labor organization. (e) Determination of question of agency For the purposes of this section, in deter- mining whether any person is acting as an ‘‘agent’’ of another person so as to make such other person responsible for his acts, the ques- tion of whether the specific acts performed were actually authorized or subsequently ratified shall not be controlling. (June 23, 1947, ch. 120, title III, § 301, 61 Stat. 156.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (b), was in the original ‘‘this Act’’ meaning act June 23, 1947, ch. 120, 61 Stat. 136, known as the Labor Management Rela- tions Act, 1947, which is classified principally to this subchapter and subchapters III (§ 171 et seq.) and IV (§ 185 et seq.) of this chapter. For complete classifica- tion of this act to the Code, see Tables. § 186. Restrictions on financial transactions (a) Payment or lending, etc., of money by em- ployer or agent to employees, representa- tives, or labor organizations It shall be unlawful for any employer or asso- ciation of employers or any person who acts as a labor relations expert, adviser, or consultant Page 59 TITLE 29—LABOR § 186 to an employer or who acts in the interest of an employer to pay, lend, or deliver, or agree to pay, lend, or deliver, any money or other thing of value— (1) to any representative of any of his em- ployees who are employed in an industry af- fecting commerce; or (2) to any labor organization, or any officer or employee thereof, which represents, seeks to represent, or would admit to membership, any of the employees of such employer who are employed in an industry affecting com- merce; or (3) to any employee or group or committee of employees of such employer employed in an industry affecting commerce in excess of their normal compensation for the purpose of caus- ing such employee or group or committee di- rectly or indirectly to influence any other em- ployees in the exercise of the right to organize and bargain collectively through representa- tives of their own choosing; or (4) to any officer or employee of a labor or- ganization engaged in an industry affecting commerce with intent to influence him in re- spect to any of his actions, decisions, or duties as a representative of employees or as such of- ficer or employee of such labor organization. (b) Request, demand, etc., for money or other thing of value (1) It shall be unlawful for any person to re- quest, demand, receive, or accept, or agree to re- ceive or accept, any payment, loan, or delivery of any money or other thing of value prohibited by subsection (a). (2) It shall be unlawful for any labor organiza- tion, or for any person acting as an officer, agent, representative, or employee of such labor organization, to demand or accept from the op- erator of any motor vehicle (as defined in sec- tion 13102 of title 49) employed in the transpor- tation of property in commerce, or the employer of any such operator, any money or other thing of value payable to such organization or to an officer, agent, representative or employee there- of as a fee or charge for the unloading, or in con- nection with the unloading, of the cargo of such vehicle: Provided, That nothing in this para- graph shall be construed to make unlawful any payment by an employer to any of his employ- ees as compensation for their services as em- ployees. (c) Exceptions The provisions of this section shall not be ap- plicable (1) in respect to any money or other thing of value payable by an employer to any of his employees whose established duties include acting openly for such employer in matters of labor relations or personnel administration or to any representative of his employees, or to any officer or employee of a labor organization, who is also an employee or former employee of such employer, as compensation for, or by rea- son of, his service as an employee of such em- ployer; (2) with respect to the payment or deliv- ery of any money or other thing of value in sat- isfaction of a judgment of any court or a deci- sion or award of an arbitrator or impartial chairman or in compromise, adjustment, settle- ment, or release of any claim, complaint, griev- ance, or dispute in the absence of fraud or du- ress; (3) with respect to the sale or purchase of an article or commodity at the prevailing mar- ket price in the regular course of business; (4) with respect to money deducted from the wages of employees in payment of membership dues in a labor organization: Provided, That the em- ployer has received from each employee, on whose account such deductions are made, a writ- ten assignment which shall not be irrevocable for a period of more than one year, or beyond the termination date of the applicable collective agreement, whichever occurs sooner; (5) with re- spect to money or other thing of value paid to a trust fund established by such representative, for the sole and exclusive benefit of the employ- ees of such employer, and their families and de- pendents (or of such employees, families, and de- pendents jointly with the employees of other employers making similar payments, and their families and dependents): Provided, That (A) such payments are held in trust for the purpose of paying, either from principal or income or both, for the benefit of employees, their families and dependents, for medical or hospital care, pensions on retirement or death of employees, compensation for injuries or illness resulting from occupational activity or insurance to pro- vide any of the foregoing, or unemployment ben- efits or life insurance, disability and sickness in- surance, or accident insurance; (B) the detailed basis on which such payments are to be made is specified in a written agreement with the em- ployer, and employees and employers are equal- ly represented in the administration of such fund, together with such neutral persons as the representatives of the employers and the rep- resentatives of employees may agree upon and in the event the employer and employee groups deadlock on the administration of such fund and there are no neutral persons empowered to break such deadlock, such agreement provides that the two groups shall agree on an impartial umpire to decide such dispute, or in event of their failure to agree within a reasonable length of time, an impartial umpire to decide such dis- pute shall, on petition of either group, be ap- pointed by the district court of the United States for the district where the trust fund has its principal office, and shall also contain provi- sions for an annual audit of the trust fund, a statement of the results of which shall be avail- able for inspection by interested persons at the principal office of the trust fund and at such other places as may be designated in such writ- ten agreement; and (C) such payments as are in- tended to be used for the purpose of providing pensions or annuities for employees are made to a separate trust which provides that the funds held therein cannot be used for any purpose other than paying such pensions or annuities; (6) with respect to money or other thing of value paid by any employer to a trust fund established by such representative for the purpose of pooled vacation, holiday, severance or similar benefits, or defraying costs of apprenticeship or other training programs: Provided, That the require- ments of clause (B) of the proviso to clause (5) of this subsection shall apply to such trust funds; (7) with respect to money or other thing of value paid by any employer to a pooled or in- Page 60 TITLE 29—LABOR § 186 dividual trust fund established by such rep- resentative for the purpose of (A) scholarships for the benefit of employees, their families, and dependents for study at educational institu- tions, (B) child care centers for preschool and school age dependents of employees, or (C) fi- nancial assistance for employee housing: Pro- vided, That no labor organization or employer shall be required to bargain on the establish- ment of any such trust fund, and refusal to do so shall not constitute an unfair labor practice: Provided further, That the requirements of clause (B) of the proviso to clause (5) of this subsection shall apply to such trust funds; (8) with respect to money or any other thing of value paid by any employer to a trust fund established by such representative for the purpose of defraying the costs of legal services for employees, their fami- lies, and dependents for counsel or plan of their choice: Provided, That the requirements of clause (B) of the proviso to clause (5) of this sub- section shall apply to such trust funds: Provided further, That no such legal services shall be fur- nished: (A) to initiate any proceeding directed (i) against any such employer or its officers or agents except in workman’s compensation cases, or (ii) against such labor organization, or its parent or subordinate bodies, or their officers or agents, or (iii) against any other employer or labor organization, or their officers or agents, in any matter arising under subchapter II of this chapter or this chapter; and (B) in any pro- ceeding where a labor organization would be prohibited from defraying the costs of legal services by the provisions of the Labor-Manage- ment Reporting and Disclosure Act of 1959 [29 U.S.C. 401 et seq.]; or (9) with respect to money or other things of value paid by an employer to a plant, area or industrywide labor management committee established for one or more of the purposes set forth in section 5(b) of the Labor Management Cooperation Act of 1978. (d) Penalties for violations (1) Any person who participates in a trans- action involving a payment, loan, or delivery of money or other thing of value to a labor organi- zation in payment of membership dues or to a joint labor-management trust fund as defined by clause (B) of the proviso to clause (5) of sub- section (c) of this section or to a plant, area, or industry-wide labor-management committee that is received and used by such labor organiza- tion, trust fund, or committee, which trans- action does not satisfy all the applicable re- quirements of subsections (c)(4) through (c)(9) of this section, and willfully and with intent to benefit himself or to benefit other persons he knows are not permitted to receive a payment, loan, money, or other thing of value under sub- sections (c)(4) through (c)(9) violates this sub- section, shall, upon conviction thereof, be guilty of a felony and be subject to a fine of not more than $15,000, or imprisoned for not more than five years, or both; but if the value of the amount of money or thing of value involved in any violation of the provisions of this section does not exceed $1,000, such person shall be guilty of a misdemeanor and be subject to a fine of not more than $10,000, or imprisoned for not more than one year, or both. (2) Except for violations involving trans- actions covered by subsection (d)(1) of this sec- tion, any person who willfully violates this sec- tion shall, upon conviction thereof, be guilty of a felony and be subject to a fine of not more than $15,000, or imprisoned for not more than five years, or both; but if the value of the amount of money or thing of value involved in any violation of the provisions of this section does not exceed $1,000, such person shall be guilty of a misdemeanor and be subject to a fine of not more than $10,000, or imprisoned for not more than one year, or both. (e) Jurisdiction of courts The district courts of the United States and the United States courts of the Territories and possessions shall have jurisdiction, for cause shown, and subject to the provisions of section 381 of title 28 (relating to notice to opposite party) to restrain violations of this section, without regard to the provisions of section 17 of title 15 and section 52 of this title, and the provi- sions of chapter 6 of this title. (f) Effective date of provisions This section shall not apply to any contract in force on June 23, 1947, until the expiration of such contract, or until July 1, 1948, whichever first occurs. (g) Contributions to trust funds Compliance with the restrictions contained in subsection (c)(5)(B) upon contributions to trust funds, otherwise lawful, shall not be applicable to contributions to such trust funds established by collective agreement prior to January 1, 1946, nor shall subsection (c)(5)(A) be construed as prohibiting contributions to such trust funds if prior to January 1, 1947, such funds contained provisions for pooled vacation benefits. (June 23, 1947, ch. 120, title III, § 302, 61 Stat. 157; Pub. L. 86–257, title V, § 505, Sept. 14, 1959, 73 Stat. 537; Pub. L. 91–86, Oct. 14, 1969, 83 Stat. 133; Pub. L. 93–95, Aug. 15, 1973, 87 Stat. 314; Pub. L. 95–524, § 6(d), Oct. 27, 1978, 92 Stat. 2021; Pub. L. 98–473, title II, § 801, Oct. 12, 1984, 98 Stat. 2131; Pub. L. 101–273, § 1, Apr. 18, 1990, 104 Stat. 138; Pub. L. 104–88, title III, § 337, Dec. 29, 1995, 109 Stat. 954.) Editorial Notes REFERENCES IN TEXT The Labor-Management Reporting and Disclosure Act of 1959, referred to in subsec. (c)(8), is Pub. L. 86–257, Sept. 14, 1959, 73 Stat. 519, which is classified principally to chapter 11 (§ 401 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 401 of this title and Tables. Section 5(b) of the Labor Management Cooperation Act of 1978, referred to in subsec. (c)(9), probably means section 6(b) of Pub. L. 95–524, which is set out as a note under section 175a of this title. Section 381 of title 28, referred to in subsec. (e), was omitted from the revision of Title 28, Judiciary and Ju- dicial Procedure, by act June 25, 1948, ch. 646, 62 Stat. 869. See rule 65 of Federal Rules of Civil Procedure set out in the Appendix to Title 28. Chapter 6 (§ 101 et seq.) of this title, referred to in subsec. (e), is a reference to act Mar. 23, 1932, ch. 90, 47 Stat. 70, popularly known as the Norris-LaGuardia Act. Page 61 TITLE 29—LABOR §§ 191 to 197 1 So in original. Probably should be ‘‘of’’. AMENDMENTS 1995—Subsec. (b)(2). Pub. L. 104–88 substituted ‘‘(as defined in section 13102 of title 49)’’ for ‘‘(as defined in part II of the Interstate Commerce Act)’’. 1990—Subsec. (c)(7)(C). Pub. L. 101–273 added subcl. (C). 1984—Subsec. (d). Pub. L. 98–473, in amending subsec. (d) generally, added par. (1), designated existing provi- sions as par. (2), inserted reference to par. (1), and in- serted provisions relating to commission of a felony. 1978—Subsec. (c)(9). Pub. L. 95–524 added cl. (9). 1973—Subsec. (c)(8). Pub. L. 93–95 added cl. (8). 1969—Subsec. (c)(7). Pub. L. 91–86 added cl. (7). 1959—Subsec. (a). Pub. L. 86–257 amended subsec. (a) generally. Prior to amendment subsec. (a) read as fol- lows: ‘‘It shall be unlawful for any employer to pay or deliver, or to agree to pay or deliver, any money or other thing of value to any representative of any of his employees who are employed in an industry affecting commerce.’’ Subsec. (b). Pub. L. 86–257 amended subsec. (b) gen- erally. Prior to amendment subsec. (b) read as follows: ‘‘It shall be unlawful for any representative of any em- ployees who are employed in an industry affecting com- merce to receive or accept, or to agree to receive or ac- cept, from the employer of such employees any money or other thing of value.’’ Subsec. (c). Pub. L. 86–257 substituted ‘‘in respect to any money or other thing of value payable by an em- ployer to any of his employees whose established duties include acting openly for such employer in matters of labor relations or personnel administration or to any representative of his employees, or to any officer or employee of a labor organization, who is also an em- ployee or former employee of such employer, as com- pensation for, or by reason of, his service as an em- ployee of such employer’’ for ‘‘with respect to any money or other thing of value payable by an employer to any representative who is an employee or former employee of such employer, as compensation for, or by reason of, his services as an employee of such em- ployer’’ in cl. (1), and added cl. (6). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1995 AMENDMENT Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 1301 of Title 49, Transpor- tation. APPLICABILITY TO COLLECTIVE BARGAINING AGREEMENTS Amendment by Pub. L. 95–524 not to affect terms and conditions of any collective bargaining agreement whether in effect prior to or entered into after Oct. 27, 1978, see section 6(e) of Pub. L. 95–524, set out as an Ef- fective Date note under section 175a of this title. § 187. Unlawful activities or conduct; right to sue; jurisdiction; limitations; damages (a) It shall be unlawful, for the purpose of this section only, in an industry or activity affecting commerce, for any labor organization to engage in any activity or conduct defined as an unfair labor practice in section 158(b)(4) of this title. (b) Whoever shall be injured in his business or property by reason or 1 any violation of sub- section (a) may sue therefor in any district court of the United States subject to the limita- tions and provisions of section 185 of this title without respect to the amount in controversy, or in any other court having jurisdiction of the parties, and shall recover the damages by him sustained and the cost of the suit. (June 23, 1947, ch. 120, title III, § 303, 61 Stat. 158; Pub. L. 86–257, title VII, § 704(e), Sept. 14, 1959, 73 Stat. 545.) Editorial Notes AMENDMENTS 1959—Subsec. (a). Pub. L. 86–257 struck out provisions which specified particular practices that were unlaw- ful, and inserted reference to practices defined in sec- tion 158(b)(4) of this title, which section defines the un- fair labor practices formerly enumerated in this sub- section. § 188. Repealed. Aug. 9, 1955, ch. 690, § 4(3), 69 Stat. 625 Section, act June 23, 1947, ch. 120, title III, § 305, 61 Stat. 160, forbade striking by Government employees, required discharge of striking employee and forfeiture of his civil-service status, and made him ineligible for employment for three years. See sections 3333 and 7311 of Title 5, Government Organization and Employees, and section 1918 of Title 18, Crimes and Criminal Proce- dure. SUBCHAPTER V—CONGRESSIONAL JOINT COMMITTEE ON LABOR-MANAGEMENT RELATIONS §§ 191 to 197. Omitted Editorial Notes CODIFICATION Section 191, act June 23, 1947, ch. 120, title IV, § 401, 61 Stat. 160, related to establishment and composition of Joint Committee on Labor-Management Relations. Section 192, act June 23, 1947, ch. 120, title IV, § 402, 61 Stat. 160, related to a study by committee of the entire field of labor-management relations. Section 193, acts June 23, 1947, ch. 120, title IV, § 403, 61 Stat. 160; Aug. 10, 1948, ch. 833, 62 Stat. 1286, related to a final report to Congress to be submitted no later than March 1, 1949. Section 194, act June 23, 1947, ch. 120, title IV, § 404, 61 Stat. 161, related to employment and compensation of experts and other personnel. Section 195, act June 23, 1947, ch. 120, title IV, § 405, 61 Stat. 161, related to hearings, calling of witnesses, pro- duction of evidence. Section 196, act June 23, 1947, ch. 120, title IV, § 406, 61 Stat. 161, related to reimbursement of committee mem- bers for expenses. Section 197, act June 23, 1947, ch. 120, title IV, § 407, 61 Stat. 161, related to appropriation of funds. CHAPTER 8—FAIR LABOR STANDARDS Sec. 201. Short title. 202. Congressional finding and declaration of pol- icy. 203. Definitions. 204. Administration. 205. Repealed. 206. Minimum wage. 207. Maximum hours. 208. Repealed. 209. Attendance of witnesses. 210. Court review of wage orders in Puerto Rico and the Virgin Islands. 211. Collection of data. 212. Child labor provisions. 213. Exemptions. 214. Employment under special certificates.