Labor unions often need to use complicated techniques to gain a toehold at new businesses or effectively advocate for unionized employees. In some cases, there may be questions about how unions manage funds or their adherence to regulations.
In cases where the federal government believes there is a conspiracy, union leaders and other employees within the organization could be at risk of prosecution. In addition to facing charges as individuals, they may be at risk of conspiracy or racketeering charges brought under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
RICO rules allow federal prosecutors to use one trial to convict multiple people implicated in the same criminal offense. Union leaders need to be ready to respond to RICO allegations, and understanding what the government must prove to secure a conviction is a key part of this necessary preparation.
What are the elements of a RICO case?
To prove that the case is eligible for prosecution under the RICO Act and to secure a conviction, federal prosecutors must establish the presence of five key elements. The first is the existence of an enterprise, which is often straightforward in a case involving a labor union. There is a group of people working together as a continuing unit toward a shared purpose.
The second critical requirement is an interstate commerce element. Unfortunately, the interpretation of this requirement is relatively broad, allowing actions as simple as sending an email or correspondence through the mail to fulfill this requirement.
The third element is proof that each of the defendants has a direct connection with the enterprise established as the first element of the case. The fourth element is the occurrence of at least two “predicate acts” within one decade. Predicate acts may include federal crimes and state-level felonies. The final element for a RICO case is that the defendants on trial must have played a role in conducting the enterprise’s affairs using racketeering. In other words, illegal activities must play a role in how the enterprise functions.
What defenses are possible?
In some cases, those facing RICO charges related to union activity can leverage the claim-of-right doctrine. Essentially, coercive conduct by those engaged in union activities for the protection of workers may not truly be racketeering activity or a predicate act.
When potentially problematic conduct serves to support legitimate labor objectives, such as safer working conditions, the conduct may not fulfill the requirement for repeated criminal activity. Other times, individual members of the union facing prosecution could highlight their lack of participation in organized activities or management of the enterprise. Individuals’ lack of knowledge or intent can also serve as a defense.
Consulting with an attorney familiar with labor law and criminal defense can be beneficial for union leaders implicated in a RICO case. Adequate legal guidance is critical for the prevention of a mass trial that could affect multiple employees working for a labor union.