Short title

This Act may be cited as the

Labor Management Reporting and Disclosure Enforcement Act of 2008

Civil money penalties for failure to provide information to members

Section 201 of the Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. 431), is amended— (1)by redesignating subsection (c) as subsection (c)(1); and (2)by inserting thereafter the following:

(2)Any labor organization that fails to meet the requirements of paragraph (1) with respect to a member, by refusing to make available the information required to be contained in a report required to be submitted under this subchapter, and any books, records, and accounts necessary to verify such report (unless such failure or refusal results from matters reasonably beyond the control of the labor organization) may in the court’s discretion, and in addition to any other relief provided by law, be liable to such member in the amount of up to $250 a day from the date of such failure or refusal, and the court may in its discretion order such other relief as it deems proper. For purposes of this paragraph, each violation with respect to any single member shall be treated as a separate violation.

Civil money penalties for failure to file a timely report

Section 210 of the Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. 440) is amended to read as follows:

210.

Civil enforcement

(a)

In general

Whenever it shall appear that any person has violated or is about to violate any of the provisions of this title, or section 301(a), the Secretary may bring a civil action for such relief, including an injunction and enforcement of administrative penalties imposed pursuant to section 211, as may be appropriate. Any such action may be brought in the district court of the United States where the violation occurred or in the United States District Court for the District of Columbia. (b)

Scope of review

Upon a complaint filed by the Secretary seeking relief under this section, the district court shall impose the civil money penalty that has been determined to be appropriate by the Secretary provided the person, labor organization, or employer against whom the relief is sought has been given written notice and afforded an opportunity to be heard before the Secretary or a designee under procedures established by the Secretary pursuant to section 211. Such penalty shall not be imposed by the court if the Secretary’s determination is shown to be arbitrary and capricious. The court shall not consider any objection or argument that was not raised in the proceedings before the Secretary. (c)

Appropriateness of injunctive relief

Upon a complaint filed by the Secretary seeking relief under this section demonstrating that a person, labor organization, or employer has failed to file timely and complete reports required by the statute, or has filed reports that are substantially incomplete or inaccurate, or that information required to be reported may be lost or destroyed absent such relief, the district court shall issue an order enjoining continued violation of this title. Injunctive relief may be awarded in addition to any other additional civil or criminal remedy and whether or not the Secretary seeks enforcement of an administratively imposed civil money penalty.

Administrative authority to impose civil money penalties

Title II of the Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. 431 et seq.) is amended— (1)by redesignating section 211 as section 212; and (2)by inserting after section 210 the following:

211.

Civil money penalties

(a)

In general

The Secretary, upon finding a violation of section 201(a), 201(b), 202, 203, 207, 212, or 301(a), may assess against the person, labor organization or employer responsible for such violation a civil money penalty of up to $250 a day from the date of the violation. The amount of this penalty shall be adjusted in accordance with the inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. (b)

Limitation

No person, labor organization or employer shall be required to pay a penalty under this paragraph for any violation a material cause of which was reasonably beyond the control of that person, labor organization or employer. (c)

Incomplete reports

A report rejected by the Secretary as incomplete shall be considered not filed for purposes of determining whether there has been a violation of section 201(a), 201(b), 202, 203, 207, 212, or 301(a) and a penalty may be assessed for such a violation. (d)

Maximum penalty

A penalty imposed for a violation under this section, as determined by the Secretary, may not exceed $250 a day or $10,000 in aggregate, as adjusted in accordance with the inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. (e)

Effect on criminal penalties

The imposition of civil money penalties under this section shall not affect the availability of criminal sanctions against any person who knowingly or willfully violates a provision of this Act. (f)

Administrative procedures

The Secretary shall establish standards and procedures governing the imposition of civil money penalties under subsection (a). Such standards and procedures shall— (1)provide for written notice to the person or entity alleged to have violated section 201(a), 201(b), 202, 203, 207, 212, or 301(a) and an opportunity to be heard before the Secretary or a designee; and (2)be established by the Secretary pursuant to sections 208 and 606. (g)

Factors in determining amount of penalty

In determining the amount of a penalty under subsection (a), consideration may be given to such factors as the gravity of the offense, any history of prior offenses (including offenses occurring before enactment of this section), ability to pay the penalty without material impairment of the ability to carry out representational functions or to honor other financial obligations, injury to uninvolved members of the labor organization, injury to the public, benefits received from the violation, deterrence of future violations, and such other factors as the Secretary may determine to be appropriate. (h)

Judicial review

(1)

In general

After exhausting all administrative remedies established by the Secretary under subsection (f), a person, labor organization, or employer against whom the Secretary has imposed a civil money penalty under subsection (a) may obtain a review of the penalty in the United States District Court where the violation occurred or in the United States District Court for the District of Columbia, by filing in such court, within 30 days of the entry of a final order imposing such a penalty, a written petition that the Secretary’s order or determination be modified or be set aside in whole or in part. (2)

Standard

Upon petition for review of a penalty by a party against whom such a penalty has been ordered, the district court shall impose the civil money penalty determined to be appropriate by the Secretary, provided the person, labor organization, or employer against whom the relief is sought has been given written notice and afforded an opportunity to be heard before the Secretary or a designee under procedures established by the Secretary pursuant to section 211, unless the Secretary’s determination is shown to be arbitrary and capricious. The court shall not consider any objection or argument that was not raised before the Secretary. (i)

Settlement by secretary

The Secretary may compromise, modify, or remit any civil money penalty that may be, or has been, imposed under this section.

Technical and conforming amendments

The Labor-Management Reporting and Disclosure Act of 1959 is further amended— (1)in section 205 (29 U.S.C. 435), by striking 211 each place it appears and inserting 212; (2)in section 207(b) (29 U.S.C. 437(b)), by striking 211 each place it appears and inserting 212; and (3)in section 301(b) (29 U.S.C. 461(b)), by striking and 210 and inserting 210 and 211.