Federal · Title 29 — Labor

29 U.S.C. § 503: Financial transactions between labor organization and officers and employees

Misdemeanor

What this law says, in plain English

Labor organizations are prohibited from making loans to officers or employees exceeding $2,000 total debt. Willful violations are punishable by a fine up to $5,000 or up to one year imprisonment.

Read the full statutory text

No labor organization shall make directly or indirectly any loan or loans to any officer or employee of such organization which results in a total indebtedness on the part of such officer or employee to the labor organization in excess of $2,000. No labor organization or employer shall directly or indirectly pay the fine of any officer or employee convicted of any willful violation of this chapter. Any person who willfully violates this section shall be fined not more than $5,000 or imprisoned for not more than one year, or both.

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.