White Collar Crime Exam 2

Labor Racketeering

Violation of trust that “relates to the infiltration, exploitation, and control of a union, employee benefit plan, employer entity, or workforce. Carried out through illegal, violent, or fraudulent means for profit or personal benefit.”

Volstead Act (1919)

Banned the production, sale, and transportation of alcohol in the U.S. Prohibition remain in effect until 1933 with the passage of 21st Amendment. Prohibition provided opportunistic time for organized crime (Mafia) to gain foothold in unions.

The Racketeer Influenced & Corrupt Organizations (RICO) Act

Passed by Congress in 1970 to combat organized crime.

3 Primary Areas of Prosecution in Labor Racketeering

Pensions and employee benefit plans, labor management relations, and internal union affairs. All involve the misuse of power/resources within labor organizations.

Criminal Cases Internal Union Affairs

Criminal activity involving high-ranking national & local union officials. Involves kickbacks, unauthorized perks & compensation, no-show jobs, & embezzlement from pension and welfare plans.

Labor-Management Relations Cases

Corrupt relationships between management & union officials. Range from collusion between representatives of management and corrupt union officials to the use of the threat of “labor problems” to extort money or benefits from employers.

Clayton Antitrust Act 1914

Allowed employees to strike & boycott their employers.

Company Towns

Communities controlled by corporations for their workers, often providing housing, stores, & amenities. Common during the Industrial Revolution but declined due to concerns about worker exploitation & lack of autonomy.

Fair Labor Standards Acts 1938

Acts mandated a minimum wage, extra pay for overtime work, & basic child labor laws.

Labor-Management Reporting & Disclosure Act (Landrum-Griffin Act, 1959)

The Act was a response to the corruption that was prevalent in the American labor unions during the 1950s. The Act regulates labor unions’ internal affairs, including reporting requirements for union officers & employees. It regulates union officials relationship with employers & established a Bill of Rights for union members.

Labor Racketeering

The infiltration and/or control of a union or employee benefit plan for personal benefit through illegal, violent, or fraudulent means.

Labor Union

A group of workers/employees in a certain trade, industry, or company who organize for the purpose of advancing members’ voice & interests in the workplace, particularly around salary, benefits, and working conditions.

McClellan Committee (1957-1960)

Act also known as the United States Senate Select Committee on Improper Activities in Labor & Management. The committee investigated corruption, criminal infiltration, and illegal activities in labor unions. The committees’