§502 Bonding of officers and employees of labor organizations; amount, form, and placement of bonds; penalty for violation

Summary

Requires officers, agents, shop stewards, other representatives, or employees who handle a labor group's money or property to be bonded, unless the group’s property and yearly receipts are $5,000 or less. The bond amount is set at the start of the group's fiscal year. It must be at least 10% of the money handled by that person and any predecessors during the prior fiscal year, but never more than $500,000. If there was no prior fiscal year, local groups need at least $1,000 and other groups or related trusts need at least $10,000. Bonds can be individual or schedule form and must be backed by a corporate surety approved under sections 9304–9308 of title 31. No one who is not covered by a bond may handle the group’s funds or property. Bonds cannot be placed through an agent or with a surety company in which the group or its officers have any direct or indirect interest. The Secretary of the Treasury can allow a different bonding plan if it offers equal protection at the same or lower cost. Anyone who knowingly breaks these rules can be fined up to $10,000, jailed for up to one year, or both.