As the election year gets under way, it’s important for general counsel at politically active corporations to review federal election laws and to look at how the Bipartisan Campaign Reform Act of 2002, otherwise known as the McCain-Feingold law, significantly alters the legal landscape.
McCain-Feingold builds on some basic tenets of federal election law. Businesses are prohibited from using corporate treasury funds to make contributions to a federal candidate, national political party or political action committee. Additionally, it’s illegal for a company to ask employees to make personal contributions to federal candidates and then reimburse those workers either directly through an expense reimbursement or indirectly through a performance bonus.
