N.Y. LAB Law § 720

§ 720. Findings and policy. The rights of employees to organize and to\nbargain collectively through labor organizations of their own choosing\nhave been affirmatively protected by the constitution and statutes of\nthis state and by parallel federal laws. Encouraged by these laws, a\nsubstantial proportion of the employees in this state have become\nmembers of, and contribute financially to, labor organizations for the\npurpose of bargaining collectively with their employers concerning wages\nand other conditions of employment. To the officers and agents of their\nlabor organizations, these employees have entrusted their funds and the\npower to act in their behalf in achieving the purposes of their labor\norganizations.\n Experience has shown instances where officers and agents of some labor\norganizations have abused their positions of fiduciary responsibility.\n Experience has also shown instances in which some employers, employer\norganizations and labor relations consultants have participated in or\ninduced such abuses of fiduciary responsibility by officers and agents\nof such labor organizations.\n Responsible leaders of the labor movement have recognized that union\nofficers and agents have a fiduciary duty to serve the members of the\nunion honestly and faithfully, and these leaders have taken courageous\naction against those who have violated their trust. Experience, however,\nhas shown that labor's efforts to correct abuses from within need to be\naided and supplemented by legislation.\n Such abuses have had a harmful effect on the general welfare, health\nand safety of employees and the public. Accordingly, it is hereby\ndeclared to be the public policy of the state of New York that officers\nand agents of a labor organization shall be held to a fiduciary\nobligation in handling the labor organization's assets; that such\nofficers and agents shall not acquire financial interests which\ninterfere or tend to interfere with the faithful performance of their\nresponsibility to the labor organization; and that such officers and\nagents shall account fully to the members of such labor organization for\nall assets and financial transactions. It is hereby further declared to\nbe the public policy of the state of New York that employers, employer\norganizations, labor relations consultants and other persons shall not\nparticipate in or induce violations of such fiduciary obligation by\nofficers and agents of labor organizations.\n