sought pertains directly to his own labor dispute, and he himself is involved in a labor dispute with the particular union or his employees.

4. Agreements with Labor Relations Consultants

Employers must report details of any agreement or arrangement with a labor relations consultant or other independent contractor or organization whereby such person engages in activities where an object is, directly or indirectly, to persuade employees to exercise or not to exercise their right to organize and bargain collectively; or to undertake to supply such employer with information concerning the activities of employees or a union in connection with a labor dispute involving such employer. (For legislative history see comments on Sec. 203(a)(4), page 93.)

Information for use solely in connection with an administrative or arbitration action or criminal or civil case need not be reported.

An adequate comprehension of the scope of this reporting requirement demands an understanding of the meaning of the expression, "labor relations consultant".

The Landrum-Griffin Act defines "labor relations consultant" as "any person who, for compensation, advises or represents an employer, employer organization, or labor organization concerning employee organizing, concerted activities or collective bargaining activities”.

Thus, an uncompensated volunteer would not be a labor relations consultant, but by use of the word "person" defined elsewhere in the law, the term would include not only individuals, but labor unions, corporations and associations as well.

As in the case of payments to employees, discussed in the preceding subsection, an employer who engages a labor relations consultant to secure information concerning union activities in connection with a labor dispute involving another employer need not report it. Nor would a report be required concerning an agreement with a consultant to secure information concerning the activities of his own employees if no labor dispute existed between the employer and his employees.

Furthermore, there is a general exclusion from these reporting provisions for any regular officer, supervisor or employee of the employer even though such officers, supervisors, or employees engage in the activities that would be reportable if done by others. (For text of Sec. 203 (e) see page 183; for legislative history, see page 96.)

Exempt from this reporting requirement is an agreement between an employer and a third person whereby such third person gives or agrees to give "advice" to the employer. This broad exemption is found

in Section 203 (c) of the Landrum-Griffin Act. (For legislative history, see comments on this section, page 95.)

The question of what is advice and what constitutes activities, these latter being reportable, will have to be judicially determined. However, the general legislative intent points to the desire of Congress to secure reports regarding only the type of activity revealed by the McClellan hearings involving pseudo employee committees, and middlemen whose activities were secretly devoted to union destruction.

Thus, an association which provides information and renders advice to its employer members is within the general exemption of Section 203 (c) if it avoids direct contact with employees, or conducts such a program openly in the name of an employer.

The net effect of this provision is to require reports regarding agreements whereby the labor relations consultant engages in activities, as distinguished from merely giving information or advice, that are designed to "persuade" employees concerning their right to organize or bargain collectively.

5. Payments to Labor Relations Consultants

Any payment to a consultant pursuant to an agreement or arrangement discussed in the above subsection is reportable.

What Activities Must Labor Relations Consultants Report? Although the name "labor relations consultant" is not used in the reporting section of the new law, it was clearly the intent of Congress that this section apply to such persons. Reporting is required of "every person" who, pursuant to an arrangement with an employer undertakes activities where an object, directly or indirectly is to:

(1) persuade employees to exercise or not to exercise their right to organize and bargain collectively; or

(2) supply an employer with information regarding the activities of employees or a labor organization in connection with a labor dispute involving such employer; except information to be used solely for an administrative, arbitration or judicial proceeding. (For text of Sec. 203(b) see page 183; for legislative history, see statements regarding this section, page 94.)

This "person" must, within 30 days after entering into such agreement or arrangement, file a report with the Secretary of Labor, signed by its president and treasurer or corresponding principal officers. An annual report must also be filed. In essence, these reports required are the same as those which are set forth in the employer reporting pro

visions relating to dealings of employers with labor relations consultants. The comments relative to those sections also apply in this instance. These reports, then, are required as a double check on employer arrangements with so-called middlemen.

What Attorney-Client Communications Are Exempt?

Lawyers are "persons" as defined in the language of the Act. However, Section 204 specifically exempts attorneys from reporting under the law. An attorney need not disclose any information which was lawfully communicated to him by any of his clients in the course of a legitimate attorney-client relationship. (For text of Sec. 204 see page 184; for legislative history, see page 96.)

With Whom Must the Reports Be Filed?

The reports are to be filed with the Bureau of Labor-Management Reports, Department of Labor, Washington 25, D. C.

When Must Reports by Employers Be Filed?

An employer's reports are due to be filed within ninety days after the end of each of his fiscal years. (For text of Sec. 203 (a) and Sec. 207(b) see pages 182 and 185.)

Thus, if the fiscal year corresponds to the calendar year, the initial report is due by April 1, 1960. If the fiscal year ends June 30, 1960, the initial report (for the period from September 14, 1959, the effective date of the Act, to June 30, 1960) would be due by October 1, 1960.

Agreements between employers and consultants to be reported must be filed within 30 days after they are entered into. This could be any date after the effective date of the law-September 14, 1959. (For text of Sec. 203(b) and Sec. 207(b) see pages 183 and 185; for legislative history regarding Sec. 207(b) see page 98.)

What Information Should the Reports Contain?

Forms are prescribed by the Secretary of Labor, but the law says they shall be signed by the president and treasurer or corresponding principal officers, and that they shall contain information showing in detail the date and amount of the payment, loan, promise, agreement or arrangement and the name, address, and position, if any, in any firm

or labor organization of the person to whom it was made. (For text of Sec. 203 (a) see page 182.)

Also required is a full explanation of the circumstances of all such payments, including the terms of any agreement or understanding.

Reporting requirements for consultants are much broader. First, because the Secretary of Labor is authorized to describe the categories of information to be filed; second, because the consultant who engages in a single reportable activity or enters into a single reportable agreement must report more than the single activity or single agreement. He must include in his report receipts of any kind from any employer to whom he renders labor relations advice or services specifying the sources thereof. Moreover, he must report each and every disbursement of any kind he makes pursuant to all such activities or agreements and indicate the purpose for each such disbursement. (For text of Sec. 203(b) see page 183; for Labor Secretary's regulations see page 238.)

The law grants no authority to the Secretary of Labor to prescribe the content of the reports to be filed by employers. He is authorized only to determine the form. In exercising his powers under the law, however, the Secretary must prescribe, by general rule, simplified reports for small employers, where a detailed report would be unduly burdensome. (For text of Sec. 208 see page 185; for legislative history, see remarks about Sec. 208 on page 98).

There is no definition provided in the law for "small employer".

How Long Must Records Be Maintained?

Every employer who files a report must maintain records which form the basis of such a report. These records must be sufficiently detailed so that the "necessary basic information" may be verified, explained, or checked for accuracy and completeness by the Secretary of Labor. The records to be preserved must include vouchers, worksheets, receipts and applicable resolutions. The employer must preserve these records for a period of not less than five years after filing the report. (For text of Sec. 206 see page 184.)

Are Filed Reports Public Information?

The reports filed by employers with the Secretary of Labor become public information and the Secretary may publish any information he obtains. The Secretary is also free to use this information for statistical and research purposes. Copies of any reports filed can be obtained

by any person from the Bureau of Labor Management Reports upon payment of a fee set by the Secretary of Labor. (For text of Sec. 205 see page 184; for text of the Secretary's rules and regulations under this section see page 241; for legislative history, see remarks regarding Sec. 205 on page 97.)

How Are the Employer Reporting Provisions to Be
Enforced?

If any person willfully violates these reporting provisions, he can be fined not more than $10,000 or be imprisoned for not more than one year, or both. Any person who makes a false statement or representation of a material fact, knowing it to be false, or who knowingly fails to disclose a material fact in any document or report, is subject to the same penalty. Any person who willfully makes a false entry or willfully conceals, withholds or destroys any books, records, reports or statements required to be kept by this title is subject to a like penalty. Each individual required to sign the required reports is to be held personally responsible for its filing and for any statement contained in the report which he knows to be false. (For text of Sec. 209 see page 185; for legislative history, see remarks concerning this section on page 99.)

Criminal penalties attach only for willful violations. Thus, if an employer in good faith fails to file a report, or unknowingly withholds or conceals information, he has committed no crime. Since the penalty is a criminal one, conviction depends upon proof beyond a reasonable doubt of the commission of a crime. There will probably be few convictions because of the apparent difficulty of proving willfulness.

Enforcement of the reporting provisions will be more frequently sought under Section 210-the civil enforcement provision-which authorizes the Secretary of Labor to bring a civil suit to compel compliance with the law. The Secretary may initiate the action in the United States District Court where the violation occurred, or at the option of the parties, in the United States District Court for the District of Columbia.

Resort by the Secretary to this civil enforcement may be made either after a violation has occurred or when it appears that an employer, an association of employers, a labor relations consultant, or other person required to file a report, is "about to violate" the reporting requirements. (For text of Sec. 210 see page 185; for legislative history, see page 100.)