LMRDA Section 503(a) (29 U.S.C. § 503(a)) prohibits labor organizations regulated by the Labor-Management Reporting and Disclosure Act (LMRDA) from making loans to any one officer or employee which result in a total indebtedness in excess of $2,000. LMRDA Section 503(b) (29 U.S.C. § 503(b)) prohibits a labor organization or an employer regulated by the LMRDA from paying, directly or indirectly, a criminal fine imposed on an officer or employee convicted of a willful violation of the LMRDA. A willful violation of Section 503(a) or 503(b) can result in imprisonment of one year and/or a fine. 29 U.S.C. § 503(c).

[updated January 2020]