
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 29USC186]

 
                             TITLE 29--LABOR
 
                  CHAPTER 7--LABOR-MANAGEMENT RELATIONS
 
 SUBCHAPTER IV--LIABILITIES OF AND RESTRICTIONS ON LABOR AND MANAGEMENT
 
Sec. 186. Restrictions on financial transactions


(a) Payment or lending, etc., of money by employer or agent to 
        employees, representatives, or labor organizations

    It shall be unlawful for any employer or association of employers or 
any person who acts as a labor relations expert, adviser, or consultant 
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 employees who are 
    employed in an industry affecting 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 commerce; 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 causing such employee 
    or group or committee directly or indirectly to influence any other 
    employees in the exercise of the right to organize and bargain 
    collectively through representatives of their own choosing; or
        (4) to any officer or employee of a labor organization engaged 
    in an industry affecting commerce with intent to influence him in 
    respect to any of his actions, decisions, or duties as a 
    representative of employees or as such officer 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 request, demand, receive, 
or accept, or agree to receive or accept, any payment, loan, or delivery 
of any money or other thing of value prohibited by subsection (a) of 
this section.
    (2) It shall be unlawful for any labor organization, or for any 
person acting as an officer, agent, representative, or employee of such 
labor organization, to demand or accept from the operator of any motor 
vehicle (as defined in section 13102 of title 49) employed in the 
transportation 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 thereof as a fee or 
charge for the unloading, or in connection with the unloading, of the 
cargo of such vehicle: Provided, That nothing in this paragraph shall be 
construed to make unlawful any payment by an employer to any of his 
employees as compensation for their services as employees.

(c) Exceptions

    The provisions of this section shall not be applicable (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 reason of, his service as an 
employee of such employer; (2) with respect to the payment or delivery 
of any money or other thing of value in satisfaction of a judgment of 
any court or a decision or award of an arbitrator or impartial chairman 
or in compromise, adjustment, settlement, or release of any claim, 
complaint, grievance, or dispute in the absence of fraud or duress; (3) 
with respect to the sale or purchase of an article or commodity at the 
prevailing market 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 employer has 
received from each employee, on whose account such deductions are made, 
a written 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 respect to money 
or other thing of value paid to a trust fund established by such 
representative, for the sole and exclusive benefit of the employees of 
such employer, and their families and dependents (or of such employees, 
families, and dependents 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 provide any of the 
foregoing, or unemployment benefits or life insurance, disability and 
sickness insurance, or accident insurance; (B) the detailed basis on 
which such payments are to be made is specified in a written agreement 
with the employer, and employees and employers are equally represented 
in the administration of such fund, together with such neutral persons 
as the representatives of the employers and the representatives 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 dispute 
shall, on petition of either group, be appointed by the district court 
of the United States for the district where the trust fund has its 
principal office, and shall also contain provisions for an annual audit 
of the trust fund, a statement of the results of which shall be 
available for inspection by interested persons at the principal office 
of the trust fund and at such other places as may be designated in such 
written agreement; and (C) such payments as are intended 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 
requirements 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 individual 
trust fund established by such representative for the purpose of (A) 
scholarships for the benefit of employees, their families, and 
dependents for study at educational institutions, (B) child care centers 
for preschool and school age dependents of employees, or (C) financial 
assistance for employee housing: Provided, That no labor organization or 
employer shall be required to bargain on the establishment 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 
families, and dependents for counsel or plan of their choice: Provided, 
That the requirements of clause (B) of the proviso to clause (5) of this 
subsection shall apply to such trust funds: Provided further, That no 
such legal services shall be furnished: (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 proceeding where a labor 
organization would be prohibited from defraying the costs of legal 
services by the provisions of the Labor-Management 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 transaction involving a 
payment, loan, or delivery of money or other thing of value to a labor 
organization 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 subsection (c) of this section or to a plant, area, or industry-
wide labor-management committee that is received and used by such labor 
organization, trust fund, or committee, which transaction does not 
satisfy all the applicable requirements 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 subsections (c)(4) 
through (c)(9) violates this subsection, 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 transactions covered by 
subsection (d)(1) of this section, any person who willfully violates 
this 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.

(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 provisions 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) 
of this section 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) of this section 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, Sec. 302, 61 Stat. 157; Pub. L. 86-
257, title V, Sec. 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, Sec. 6(d), Oct. 27, 1978, 92 Stat. 2021; Pub. L. 98-473, 
title II, Sec. 801, Oct. 12, 1984, 98 Stat. 2131; Pub. L. 101-273, 
Sec. 1, Apr. 18, 1990, 104 Stat. 138; Pub. L. 104-88, title III, 
Sec. 337, Dec. 29, 1995, 109 Stat. 954.)

                       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, 
as amended, which is classified principally to chapter 11 (Sec. 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 Judicial 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 (Sec. 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.


                               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 provisions as par. (2), 
inserted reference to par. (1), and inserted 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 follows: ``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) generally. Prior to 
amendment subsec. (b) read as follows: ``It shall be unlawful for any 
representative of any employees who are employed in an industry 
affecting commerce to receive or accept, or to agree to receive or 
accept, 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 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 reason of, his service as an 
employee 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 employer'' in cl. (1), 
and added cl. (6).


                    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 701 of 
Title 49, Transportation.


            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 Effective Date note under section 175a of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 432, 433, 523, 1002, 1111 of 
this title; title 18 section 2516; title 26 sections 9702, 9712; title 
33 section 917.
