Title 29, LaborRelease 119-110
§503 Financial Transactions Between Labor Organization and Officers and Employees
Title 29 › CHAPTER 11 — LABOR-MANAGEMENT REPORTING AND DISCLOSURE PROCEDURE › SUBCHAPTER VI — SAFEGUARDS FOR LABOR ORGANIZATIONS › § 503
Summary
Unions and employers may not, directly or indirectly, lend money so an officer or employee owes more than $2,000, nor may they pay fines for officers or employees convicted of any willful violation of this chapter; willful violators face up to a $5,000 fine, one-year jail, or both.
Full Legal Text
Title 29, §503
Labor, Source: USLM XML via OLRC
(a)Direct and indirect loans
No labor organization shall make directly or indirectly any loan or loans to any officer or employee of such organization which results in a total indebtedness on the part of such officer or employee to the labor organization in excess of $2,000.
(b)Direct or indirect payment of fines
No labor organization or employer shall directly or indirectly pay the fine of any officer or employee convicted of any willful violation of this chapter.
(c)Penalty for violations
Any person who willfully violates this section shall be fined not more than $5,000 or imprisoned for not more than one year, or both.
Reference
Citations & Metadata
Citation
29 U.S.C. § 503
Title 29, Labor
Last Updated
Sep 22, 2026
Release point: 119-110