UNITE HERE Local 1 saw a $2.2 million deficit in 2024, according to a federal labor filing that has prompted scrutiny from some members over the union’s spending on legal fees and administrative costs.
According to the U.S. Department of Labor’s 2024 LM-2 report, UNITE HERE Local 1 reported $11,821,575 in receipts and $14,105,273 in disbursements, resulting in a deficit of more than $2.2 million. The union covered the gap by liquidating $477,437 in investments and drawing down cash reserves. This approach is documented in the official LM-2 filing.
The report shows UNITE HERE Local 1 spent $1,123,780 on legal and arbitration fees and $1,220,073 on employee benefit programs, including health, dental, and retirement. Payments to one law firm alone totaled $697,949.
The filing also documents $1,463,957 in overhead and administrative spending. This includes $481,276 paid to Sunshine Enterprise LLC for rent and $43,000 to another landlord. Additional expenses included parking and leased equipment.
UNITE HERE Local 1 reported $3.6 million in officer and employee disbursements. Many staff members earned base salaries exceeding $80,000, with additional reimbursements contributing to total compensation. President Karen Kent received no base salary but was reimbursed for expenses related to “official business,” while several vice presidents and board members reported little to no salary and received similar reimbursements.
UNITE HERE Local 1 represents more than 15,000 hospitality workers in Chicago and Northwest Indiana across sectors including hotels and restaurants. It is an affiliate of the international UNITE HERE union, which represents approximately 300,000 workers across North America.
The union’s financial disclosures indicate a prioritization of legal and administrative expenditures over direct member benefits. This allocation of funds has prompted questions regarding the sustainability of Local 1’s financial practices.
Below is a table summarizing key financial figures from the report:
UNITE HERE Local 1 2024 Financial Summary
| Category | Amount (USD) | Notes |
|---|---|---|
| Total Revenue | 11800000 | Primarily member dues |
| Total Disbursements | 14100000 | Exceeded revenues by over $2.2 million |
| Net Deficit | -2200000 | Covered by reserves and investment sales |
| Legal & Arbitration Fees | 1100000 | $697,949 to one firm |
| Direct Member Benefits | 1200000 | Health, dental, retirement |
| Overhead & Admin (Total) | 1400000 | Includes rent, parking, office equipment |
| Rent (Sunshine Enterprise LLC) | 481276 | Largest rent recipient |
| Rent (Other) | 43000 | |
| Parking | 129000 | |
| Staff & Officer Disbursements | 3600000 | Salaries, travel, reimbursements |
| Political/Shared Expense Spending | 975000 | $115K political, $863K shared with national |
| Highest Staff/Organizer Base Salaries | $80,000+ | Many with extra reimbursements |
| Officer Compensation (Kent, President) | 15000 | Reimbursements, no base salary |
| Monthly Dues (Range) | Up to $65.05 | |
| Initiation Fees (Up to) | 100 |
