Reimbursed Travel Expense Payments printable pdf download

Reimbursed Travel Expense Payments

When a union official (an officer, employee, steward, or committee member) incurs an expense

while traveling on union business, the union often reimburses him or her. This compliance tip

provides guidance to unions on handling reimbursed travel expenses.

The Office of Labor-Management Standards (OLMS) enforces certain provisions of the Labor-

Management Reporting and Disclosure Act of 1959 (LMRDA). The LMRDA requires, in part, that

unions meet basic standards of fiscal responsibility. To ensure compliance with the LMRDA and

safeguard union assets by promoting transparency and accountability, OLMS recommends that each

union: (1) adopt a clear policy on reimbursed travel expenses; (2) establish what documentation is

needed for an official to be reimbursed; and (3) establish a procedure that provides for approval of travel

expense claims. The union must then properly report all expense payments on the appropriate line items

and schedules on the Form LM-2, LM-3, or LM-4 it files. Section 206 of the LMRDA requires the

union to maintain records that are sufficient to permit the reports to be verified, explained and checked

for accuracy and completeness. Each of these components is discussed in more detail below.

Adopt a Clear Travel Reimbursement Policy

OLMS does not require a particular travel expense reimbursement policy but suggests that each union

adopt a policy that answers the following questions in as much detail as possible:

•

Who is eligible to receive reimbursed travel expenses? Must the individual be a union officer or

employee? What about members? What about spouses of officials?

•

Under what circumstances may reimbursed travel expenses be paid? What if the official attended

an event put on by a parent body and the parent body paid some of the travel expenses? What if the

local already pays the official a monthly expense allowance?

•

What travel expenses are covered by the policy? May the traveler be reimbursed for airline flights,

car rentals, or mileage for use of a personal car? What about lodging? Must the official be outside

his or her normal work area for a certain period of time in order to be eligible for reimbursement?

•

Must the travel or other expense have been authorized in advance?

In addition to making the policy as detailed as possible, the union should periodically review and update

it. It is also a good idea for the union to include the requirements of the policy in its constitution and

bylaws.

Establish What Documentation is Required to Approve Payment

The policy should state what documentation is required when a request for reimbursement is submitted

for payment: Some unions have adopted a fairly straightforward rule - “no receipt, no reimbursement,

no exceptions.” Does the policy require airline receipts, boarding passes, itemized hotel receipts, and

itemized receipts for meal purchases required to document expenses relating to attendance at out-of-

town conferences, classes, or conventions? Itemized receipts are required to be maintained. Does the

policy require that mileage expenses be supported by a log that lists the beginning and ending mileage

for each day, the destination, and the purpose of each trip? This level of record keeping is required for

mileage expenses.

The travel expense claim made by the union official should refer to the specific union business or

purpose of the expense. The authorization for reimbursement should be in writing, such as in the

minutes of the meeting where it was granted.

Some unions require that a standard travel expense form be completed when an official claims expenses.

OLMS does not require that a form be used. However, a form has the advantage of providing the

Reimbursed Travel Expense Payments

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