U.S. Code » Title 29 » Chapter CHAPTER 11— LABOR-MANAGEMENT REPORTING AND DISCLOSURE PROCEDURE › Subchapter SUBCHAPTER VI— SAFEGUARDS FOR LABOR ORGANIZATIONS

29 U.S.C. § 502

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

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(a) Every officer, agent, shop steward, or other representative or employee of any labor organization (other than a labor organization whose property and annual financial receipts do not exceed $5,000 in value), or of a trust in which a labor organization is interested, who handles funds or other property thereof shall be bonded to provide protection against loss by reason of acts of fraud or dishonesty on his part directly or through connivance with others. The bond of each such person shall be fixed at the beginning of the organization’s fiscal year and shall be in an amount not less than 10 per centum of the funds handled by him and his predecessor or predecessors, if any, during the preceding fiscal year, but in no case more than $500,000. If the labor organization or the trust in which a labor organization is interested does not have a preceding fiscal year, the amount of the bond shall be, in the case of a local labor organization, not less than $1,000, and in the case of any other labor organization or of a trust in which a labor organization is interested, not less than $10,000. Such bonds shall be individual or schedule in form, and shall have a corporate surety company as surety thereon. Any person who is not covered by such bonds shall not be permitted to receive, handle, disburse, or otherwise exercise custody or control of the funds or other property of a labor organization or of a trust in which a labor organization is interested. No such bond shall be placed through an agent or broker or with a surety company in which any labor organization or any officer, agent, shop steward, or other representative of a labor organization has any direct or indirect interest. Such surety company shall be a corporate surety which holds a grant of authority from the Secretary of the Treasury under sections 9304–9308 of title 31, as an acceptable surety on Federal bonds: Provided, That when in the opinion of the Secretary a labor organization has made other bonding arrangements which would provide the protection required by this section at comparable cost or less, he may exempt such labor organization from placing a bond through a surety company holding such grant of authority.(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 V, § 502, Sept. 14, 1959, 73 Stat. 536; Pub. L. 89–216, § 1, Sept. 29, 1965, 79 Stat. 888.)Editorial NotesCodification

In subsec. (a), “sections 9304–9308 of title 31” substituted for “the Act of July 30, 1947 (6 U.S.C. 6–13)” on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Amendments

1965—Subsec. (a). Pub. L. 89–216 substituted “to provide protection against loss by reason of act of fraud or dishonesty on his part directly or through connivance with others” for “for the faithful discharge of his duties” in first sentence and inserted proviso allowing Secretary to permit other arrangements to provide necessary protection.

Notes of Decisions
Cited in 61 cases (19 in the last 5 years), 1967–2026 · leading case: Ponsetti v. GE Pension Plan, 614 F.3d 684 (7th Cir. 2010).
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Ponsetti v. GE Pension Plan, 614 F.3d 684 (7th Cir. 2010). “The district court order ruling on the motion to dismiss began by discussing plaintiff's claim for payment of benefits under 29 U.S.C. § 502 (a)(1)(B) in a segment titled "Section 502(A)(1)(b) [sic].”
Connie M. Tolle v. Carroll Touch, Inc., a Wholly Owned Subsidiary of Amp Inc., Formerly Known as Carroll Touch Tech. Corp., 977 F.2d 1129 (7th Cir. 1992). “A Section 510 claim is made enforceable through Section 502(a)(3) and (e) of ERISA, 29 U.S.C. § 502 (a)(3), (e). 1 Section *1134 510, unlike Section 502(a)(1)(B), is not concerned with whether a defendant complied with the contractual terms of an employee benefit plan.”
In re WellPoint, Inc. Out-of-Network \UCR\" Rates Litig.", 865 F. Supp. 2d 1002 (C.D. Cal. 2011). “” 29 U.S.C. § 502 (a). Plaintiffs have done just that in their ERISA claims for relief, see SAC ¶¶ 381, 387, 389, but also seek the same relief under the Cartwright Act, see id.”
Int'l Bhd. of Teamsters v. Willis Corroon Corp., 802 A.2d 1050 (Md. 2002). “Title 29 U.S.C. § 502 (a), which is part of the Federal Labor Management Reporting and Disclosure Act.”
Todd Rochow v. Life Ins. Co. of N. Am., 737 F.3d 415 (6th Cir. 2013). · cites it 2× “” 29 U.S.C. § 502 (a)(3). Although one meaning of redress is “to set right,” it can also mean “to exact reparation for: avenge.”
Anthony Skirlick, as an Individual & as a Rep. of a Class v. Fid. & Deposit Co. of Maryland, 852 F.2d 1376 (D.C. Cir. 1988). · cites it 3× “” 29 U.S.C. § 502 (a). The surety bond written by F & D for PATCO provides, in relevant part: The Underwriter .”
Herman v. South Carolina Nat'l Bank, 140 F.3d 1413 (11th Cir. 1998). “29 U.S.C. § 502 (a)(2) refers to appropriate relief under § 1109 of Title 29, the codified version of § 409 of ERISA.”
Giordani v. Hoffmann, 295 F. Supp. 463 (E.D. Pa. 1969). · cites it 2× “and the Trustees and Governors of the trust funds pursuant to the requirements contained respectively in Title 29 U.S.C.A. § 502 and Title 29 U.S.C.A. § 308 (d).”
Trs. of the Unite Here Nat'l Health Fund v. JY Apparels, Inc., 535 F. Supp. 2d 426 (S.D.N.Y. 2008). “” 29 U.S.C. § 502 (g)(2). The Agreement does not provide for liquidated damages but provides for interest on unpaid contributions at a rate of “1% per month.”
Arana v. Ochsner Health Plan, Inc., 302 F.3d 462 (5th Cir. 2002). “In reaching its decision, the district court found that Arana’s petition stated a claim for benefits under 29 U.S.C. § 502 (a) that was completely preempted by ERISA.”
Tucker Ex Rel. Local 70 Bartender's Union of Brooklyn & Queens v. Shaw, 308 F. Supp. 1 (E.D.N.Y 1970). · cites it 3× “It should be noted that the provisions for bonding, which became 29 U.S.C.A. § 502 , derived from S. 1555, § 308 as passed by the Senate, 1 Leg.”
Blackburn v. Becker, 933 F. Supp. 724 (N.D. Ill. 1996). “, and venue is proper as the ERISA plan at issue is administered in this district and division, see 29 U.S.C. § 502 (e)(2). The facts are taken from the allegations in the petition to adjudicate.”
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