2461
Bonding of Officers and Employees of Labor
Organizations
-- 29 U.S.C. 502
|
Title 29 U.S.C. § 502 requires that all officers, employees and
certain representatives who handle funds or property of a labor organization
(except those whose property and annual receipts do not exceed $5,000), or
of a
trust in which a labor organization is interested, be bonded to provide
protection against loss by reason of acts of fraud or dishonesty on their
part
directly or through connivance with others. Any person who is not bonded
shall
not be permitted to exercise control over a union's assets. While no
designation
is made as to who is responsible for permitting an unbonded individual to
handle
assets, the fiduciary standards imposed in 29 U.S.C. § 501(a) indicate
that
officers, agents and ship stewards and others, regardless of title, in a
position
of authority may be liable. Willful violations are punishable by up to one
year
and a fine.
[cited in USAM 9-139.020] | |