District Court enters Consent Judgment in FEC v. Plumbers and Pipefitters Local Union No. 9, et al.; imposes $240,000 civil penalty

WASHINGTON – The U.S. District Court for the District of Columbia yesterday entered a Consent Judgment imposing a total joint civil penalty of $240,000 against defendants Plumbers and Pipefitters Local Union No. 9 (the Union) and Plumbers and Pipefitters Local Union No. 9 Political Action Committee (the PAC) (collectively, defendants) for their failure to comply with the terms of the parties’ conciliation agreement with the Federal Election Commission in Matter Under Review (MUR) 7028.

The Consent Judgment in FEC v. Plumbers and Pipefitters Local Union No. 9, et al. (Case No.24-1450) finds that the defendants caused contributions to the PAC to be deducted from the pay of multiple union members without first obtaining a signed payroll deduction authorization, and caused contributions to the PAC to be deducted from multiple members after those members affirmatively declined to participate in the payroll deduction program.

In addition to the $240,000 civil penalty, the Consent Judgment requires defendants to 1) refund all contributions made by members who declined to participate in the payroll deduction program between May 17, 2019, and the date of the Consent Judgment, and 2) send notifications to all union members who had a contribution to the PAC deducted from their paycheck for which they had not signed an authorized payroll deduction form between May 17, 2019, and the date of the Consent Judgment, offering them a full or partial refund. Defendants are also permanently enjoined from deducting or accepting contributions from union members’ paychecks without first obtaining the required authorizations and providing the required notices.

Under the Federal Election Campaign Act of 1971, as amended (the Act), labor organizations are permitted to use general treasury funds to establish and administer a political action committee known as a “separate segregated fund” (SSF). An SSF established by a labor union may receive contributions from the union’s members by a payroll deduction or check-off system, but a contributor must affirmatively authorize such deductions. The Act also requires that certain notices be given to potential contributors, including the political purpose of the SSF and the right to refuse to contribute without reprisal.