Member Information Center
/ IAEP Local Leadership Resources
Financial Officers - Bonding Requirements
Who Must Be Bonded
Every union covered by the LMRDA or CSRA is subject to the bonding requirements except for unions with property and annual receipts that do not exceed $5,000 in value. That means every officer, agent, shop steward, or other representative who handles funds or other property must be bonded.
Before any new employees or officers may handle funds, they must be bonded for an amount based upon the funds handled by their predecessors during the last fiscal year. No additional bonding is required if a bond, which meets the requirements of the LMRDA, is already in force to cover them.
If a person who is not bonded handles union funds, he or she is violating the law. The person who assigns him or her those functions is also violating the law.
Amount of Bond
The minimum bonding amount for each covered officer or employee is 10 percent of the funds handled by the official and his or her predecessor, if any, during the preceding fiscal year. For a new union, the bond must be at least $1,000.
Obtaining a Bond
Your Local may purchase a bond only from a surety company that holds a grant of authority from the Secretary of the Treasury as an acceptable surety on Federal bonds.
For bonding purposes, the National uses The McLaughlin Company, located at 1725 Desales Street NW, Washington, DC 20036. You can contact The McLaughlin Company directly at (800) 233-2258; our accounts are handled by Scott Riffert.
