The Department of Labor’s Office of Labor-Management Standards (OLMS) has announced that it will publish notice of an intended rulemaking to propose rescission of the Form T-1 Trust Annual Report, established by a March 2020 final rule. As communicated previously, Form T-1 required annual reporting on financial information pertinent to “trusts in which a labor organization is interested.” Under the current rule, initial Form T-1 reports must be filed by September 28, 2021.
Because the OLMS believes that fundamental questions exist regarding the rule’s legal basis and policy justifications, and because of the anticipated regulatory action to propose rescinding the Form T-1, and the rapidly approaching filing deadline and associated recordkeeping burden for would-be filers, OLMS has determined that it would not be a good use of resources to bring enforcement actions based upon a failure to file the initial Form T-1 report. Consistent with this non-enforcement policy and intent to pursue notice-and-comment rulemaking, OLMS will not seek to enforce the filing of a Form T-1 for one year from the date a labor organization’s first Form T-1 is due.
News Flash, Posted 3-29-21