Financial Safeguards - Union officers have a duty to manage the funds and property of the union solely for the benefit of the union and its members in accordance with the union’s constitution and bylaws. Union officers or employees who embezzle or steal union funds or other assets commit a Federal crime punishable by a fine and/or imprisonment.

Bonding - Union officers or employees who handle union funds or property must be bonded to provide protection against losses if their union has property and annual financial receipts which exceed $5,000.

Labor Organization Reports - Union officers must:
• file an initial information report (Form LM-1) and annual financial reports (Forms LM-2/3/4) with OLMS.
• retain the records necessary to verify the reports for at least five years.

Officer Reports - Union officers and employees must file reports concerning any loans and benefits received from, or certain financial interests in, employers whose employees their unions represent and businesses that deal with their unions.

Officer Elections - Unions must:
• hold elections of officers of local unions by secret ballot at least every three years.
• conduct regular elections in accordance with their constitution and bylaws and preserve all records for one year.
• mail a notice of election to every member at least 15 days prior to the election.
• comply with a candidate’s request to distribute campaign material.
• not use union funds or resources to promote any candidate (nor may employer funds or resources be used).
• permit candidates to have election observers.
• allow candidates to inspect the union’s membership list once within 30 days prior to the election.

Restrictions on Holding Office - A person convicted of certain crimes may not serve as a union officer, employee, or other representative of a union for up to 13 years.

Loans - A union may not have outstanding loans to any one officer or employee that in total exceed $2,000 at any time.

Fines - A union may not pay the fine of any officer or employee convicted of any willful violation of the LMRDA.