U.S. Code » Title 29 » Chapter CHAPTER 11— LABOR-MANAGEMENT REPORTING AND DISCLOSURE PROCEDURE › Subchapter SUBCHAPTER IV— TRUSTEESHIPS

29 U.S.C. § 463

Unlawful acts relating to labor organization under trusteeship

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(a) During any period when a subordinate body of a labor organization is in trusteeship, it shall be unlawful (1) to count the vote of delegates from such body in any convention or election of officers of the labor organization unless the delegates have been chosen by secret ballot in an election in which all the members in good standing of such subordinate body were eligible to participate, or (2) to transfer to such organization any current receipts or other funds of the subordinate body except the normal per capita tax and assessments payable by subordinate bodies not in trusteeship: Provided, That nothing herein contained shall prevent the distribution of the assets of a labor organization in accordance with its constitution and bylaws upon the bona fide dissolution thereof.(b) Any person who willfully violates this section shall be fined not more than $10,000 or imprisoned for not more than one year, or both.(Pub. L. 86–257, title III, § 303, Sept. 14, 1959, 73 Stat. 531.)
Notes of Decisions
Cited in 12 cases (3 in the last 5 years), 1965–2025 · leading case: Local Unions 20 v. United Bhd. of Carpenters & Joiners of Am., 223 F. Supp. 2d 491 (S.D.N.Y. 2002).
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Local Unions 20 v. United Bhd. of Carpenters & Joiners of Am., 223 F. Supp. 2d 491 (S.D.N.Y. 2002). “Plaintiffs’ principal contention is that this transfer violated § 303(a)(2) of the LMRDA, 29 U.S.C. § 463 (a)(2). Plaintiffs pray that the Court “order the UBC to give to the Plaintiffs and the NYCDCC a full accounting of all the moneys collected from the six cents per hour…”
United Union of Roofers, Waterproofers & Allied Workers, Union No. 33 v. Edwin Meese, Attorney Gen. of the United States of Am., 823 F.2d 652 (1st Cir. 1987). “§§ 439 , 461 (1982) (establishing certain misdemeanor reporting violations); 29 U.S.C. § 463 (1982) (establishing misdemeanor violations relating to administration of unions in trusteeship).”
Saunders v. Hankerson, 312 F. Supp. 2d 46 (D.D.C. 2004). “See 29 U.S.C. § 463 . Moreover, it is undisputed that, from the moment the AFT took over the WTU local and imposed an administratorship on January 27, 2003, the AFT assumed a fiduciary duty under Section 501(a) toward the WTU member *CXXIV ship.”
Frenza v. Sheet Metal Workers' Int'l Ass'n, 567 F. Supp. 580 (E.D. Mich. 1983). “In Count IV of their First Amended Complaint, plaintiffs allege that the union defendants violated 29 U.S.C. § 463 (a)(2) by transferring Local 80 assets to the International without the permission of the Local 80 membership.”
John Smith, Mitchell Griggs, & Addie Steward v. Off. & Prof'l Employees Int'l Union John Kelly, & George Porcaro, 821 F.2d 355 (6th Cir. 1987). “§ 461 , which establishes reporting requirements for trusteeships, uses the term “subordinate labor organization;” § 303, 29 U.S.C. § 463 , uses the terms “subordinate body” and “labor organization” to refer to the same entity.”
Brenda J. Reed v. John N. Sturdivant Am. Fed'n of Gov't Employees, 176 F.3d 1051 (8th Cir. 1999). “The heading for 29 U.S.C. § 463 is "labor organizations under trusteeship," but the text of the section uses the term "subordinate body.”
Pruitt v. United Bhd. of Carpenters & Joiners of Am., 673 F. Supp. 441 (N.D. Ga. 1987). · cites it 2× “Department of Labor, in an early report to Congress regarding these provisions, states an acceptable position on this issue: [I]f in fact a trusteeship is established for at least one of the purposes enumerated in section 302 of the Act, the validity of the trusteeship will not…”
United Bhd. of Carpenters & Joiners v. Brown, 343 F.2d 872 (10th Cir. 1965). “§ 411 (a) (3) (A), and section 303(a) of the Act, 29 U.S.C.A. § 463 (a). The first section relates to the raising of local dues upon a majority vote by secret ballot and the latter section relates to improper activities by a trustee during the period of trusteeship.”
Workers United v. Workers United (W.D. Ky. 2025). · cites it 5× “Transfer of Funds Under 29 U.S.C. § 463 Local 181 argues that 29 U.”
Util. Workers United Ass'n, Local 537 v. Util. Workers Union of Am., Afl-cio (W.D. Pa. 2022). · cites it 4× “LMRDA Restriction on Transfer of Trusteed Assets In enacting § 303 of the Labor Management Reporting and Disclosure Act of 1959 (“LMRDA”), 29 U.S.C. § 463 , Congress sought to curtail use of the trusteeship power to “milk” subordinate local unions’ funds.”
Workers United v. Workers United (W.D. Ky. 2025). · cites it 3× “at 714 (citing 29 U.S.C. § 463 (a)). A. Non-existent Defendant In their Rule 12(b)(6) motion Local 181 reasserts the argument they made in their Rule 12(b)(4) motion to dismiss, that they are unaffiliated with Workers United, and as such the served defendant “Workers United,…”
Brenda Reed v. John Sturdivant (8th Cir. 1999). “Two of those cases, AFSCME and Smith, considered the question before us and expressly held that Title III did not apply to a trusteeship imposed by a mixed national 4 The heading for 29 U.S.C. § 463 is “labor organizations under trusteeship,” but the text of the section uses the…”
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