What Are the Requirements of a Taft-Hartley Trust Fund?

9 Sep

In 1947, the Taft-Hartley Act was passed in an effort by Congress to limit union power. Since then, union trust funds have been required to adhere to restrictions strict enough to often necessitate the assistance of a law firm such as California’s Laquer Urban Clifford & Hodge, LLP. Attorneys at Laquer Urban Clifford & Hodge, LLP bring over 25 years of experience in Taft-Hartley administration and can ensure that a union’s trust fund remains completely compliant and audit-ready.

When a union maintains a trust fund, it must stay strictly within the guidelines of Taft-Hartley, beginning with the express purpose of the fund being for the exclusive benefit of its members and their families. Next, payments made by members into a collective pool must be held in a trust and not any other type of account.

Under Taft-Hartley, proceeds from a union trust can be applied only to pay medical bills, for retirement or pension funding, or as compensation from accidental injury. In a related clause, exactly how such payments are made must be detailed in a written document and kept on file.

Finally, the union must agree for labor and management to be equally represented on the Board of Trustees and to provide for a neutral decision-making means in case of a deadlock between members.

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