United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2007_register executive 2014-05-29 article Rules and Regulations D09002ee1c80c7b7f D09002ee1c80c7c4c United States Department of Labor originator org United States Government Agency or Subagency United States Office of Labor-Management Standards originator org United States Government Agency or Subagency On December 22, 2002, the Department of Labor (Department) proposed revisions to Forms LM-2, LM-3, and LM-4, which are used by labor organizations to file annual financial reports required under Title II of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA or Act), 29 U.S.C. 401 et seq., with the Employment Standards Administration's Office of Labor-Management Standards (OLMS). A portion of the proposed rule stated the Department's intent to revise its interpretation of an aspect of the definition of "labor organization * * * deemed to be engaged in an industry affecting commerce" under the LMRDA. After receiving and considering comments, the Department published its final rule on October 9, 2003. The interpretation in the final rule stated that intermediate bodies that are subordinate to a national or international labor organization that includes a labor organization will be covered by the LMRDA, even if the intermediate body's constituents are solely public sector local labor unions not covered by the Act. This interpretation of the LMRDA was challenged in federal district court by labor unions affected by the interpretation, and the court granted summary judgment in favor of the labor unions. Alabama Education Ass'n v. Chao, 2005 WL 736535 (D.D.C. Mar 31, 2005). On appeal, the U.S. Court of Appeals for the District of Columbia Circuit reversed the grant of summary judgment. Alabama Education Ass'n v. Chao, 455 F.3d 386 (D.C. Cir. 2006). The court of appeals held that the Department's interpretation was reviewable under deference principles established under Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), and that the statutory definition of "labor organization * * * deemed to be engaged in an industry affecting commerce" is ambiguous and subject to more than one permissible interpretation, including the Department's interpretation. 455 F.3d at 393, 396. The court also concluded, however, that the Department had failed to provide a "reasoned analysis supporting its change of position" and remanded the rule to the Department to provide such analysis. Id. at 396-397. The Department issues this Policy Statement in response to the court's remand order. 72 FR 3735 https://www.govinfo.gov/app/details/FR-2007-01-26/E7-1275 E7-1275 fr26ja07-12 RIN 2157-AB34 4510-CP-P https://www.govinfo.gov/app/details/FR-2007-01-26/E7-1275 https://www.govinfo.gov/content/pkg/FR-2007-01-26/html/E7-1275.htm https://www.govinfo.gov/content/pkg/FR-2007-01-26/pdf/E7-1275.pdf 8 p. 3735 3742 72 FR 3735 Title 29 Part 403 29 CFR Part 403 RIN 2157-AB34 Labor Organization Annual Financial Reports, Forms LM-2, LM-3, LM-4.; Federal Register Vol. 72, Issue RULE E7-1275 DEPARTMENT OF LABOR Office of Labor-Management Standards 2007-01-26 4510-CP-P E7-1275 Policy statement; interpretation.

On December 22, 2002, the Department of Labor (Department) proposed revisions to Forms LM-2, LM-3, and LM-4, which are used by labor organizations to file annual financial reports required under Title II of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA or Act), 29 U.S.C. 401 et seq., with the Employment Standards Administration's Office of Labor-Management Standards (OLMS). A portion of the proposed rule stated the Department's intent to revise its interpretation of an aspect of the definition of "labor organization * * * deemed to be engaged in an industry affecting commerce" under the LMRDA. After receiving and considering comments, the Department published its final rule on October 9, 2003. The interpretation in the final rule stated that intermediate bodies that are subordinate to a national or international labor organization that includes a labor organization will be covered by the LMRDA, even if the intermediate body's constituents are solely public sector local labor unions not covered by the Act. This interpretation of the LMRDA was challenged in federal district court by labor unions affected by the interpretation, and the court granted summary judgment in favor of the labor unions. Alabama Education Ass'n v. Chao, 2005 WL 736535 (D.D.C. Mar 31, 2005). On appeal, the U.S. Court of Appeals for the District of Columbia Circuit reversed the grant of summary judgment. Alabama Education Ass'n v. Chao, 455 F.3d 386 (D.C. Cir. 2006). The court of appeals held that the Department's interpretation was reviewable under deference principles established under Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837 (1984), and that the statutory definition of "labor organization * * * deemed to be engaged in an industry affecting commerce" is ambiguous and subject to more than one permissible interpretation, including the Department's interpretation. 455 F.3d at 393, 396. The court also concluded, however, that the Department had failed to provide a "reasoned analysis supporting its change of position" and remanded the rule to the Department to provide such analysis. Id. at 396-397. The Department issues this Policy Statement in response to the court's remand order.

Effective Date: January 26, 2007. Kay H. Oshel, Director, Office of Policy, Reports, and Disclosure, Office of Labor-Management Standards (OLMS), U.S. Department of Labor, 200 Constitution Avenue NW., Room N- 5605, Washington, DC 20210, olms-public@dol.gov, (202) 693-1233 (this is not a toll-free number). Individuals with hearing impairments may call 1-800-877-8339 (TTY/TDD). Labor-management standards: Labor organization annual financial reports, olms-public@dol.gov http://www.dol.gov/esa/regs/compliance/olms/erds/LM2Instr2-2-04koREVISED.pdf Vol. 72, no. 17 Office of the Federal Register, National Archives and Records Administration 2007-01-26 continuing daily deposited born digital 232 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2007-01-26 P0b002ee1892c6f10 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr26ja07 https://www.govinfo.gov/app/details/FR-2007-01-26 https://www.govinfo.gov/content/pkg/FR-2007-01-26/pdf/FR-2007-01-26.pdf https://www.govinfo.gov/content/pkg/FR-2007-01-26/xml/FR-2007-01-26.xml fdlp 3705 3923 DGPO 2014-05-29 2024-06-05 FR-2007-01-26 machine generated eng FR FR-2007-01-26 72 17