The peers breached parliamentary rules on "paid advocacy" and "personal honour", the Lords Committee for Privileges concluded.
Two other Labour peers, Lord Moonie and Lord Snape, were cleared of wrongdoing but ordered to apologise to the House for "unwise" comments to undercover journalists posing as lobbyists.

It follows the so-called "cash for laws" scandal which erupted after journalists posing as members of a bogus lobbying firm discussed possible consultancy contracts which would include amending legislation which would favour clients.
The committee concluded that Lords Taylor and Truscott demonstrated "clear willingness" to engage in "paid advocacy".
It stopped short of calling for their full expulsion, concluding that it did not have the power to do so.
But in a striking rebuff to the Attorney General, it decided that it did have the power to suspend the pair until the end of the current session of Parliament, relying on laws dating back more than 300 years.
The Attorney General, Baroness Scotland, earlier advised the committee that it did not have such powers.
In a highly critical report, Lord Taylor is described as having an "advanced degree of self satisfaction" with a tendency to "ramble" and become "easily confused".
It portrays his claims to journalists about his powers to influence legislation as "exaggerated and irrational" and dismisses his appeal against the allegation as "full of internal contradictions".
Lord Truscott, similarly, is described as "advertising his power and willingness to influence Parliament in return for a financial inducement".
The suspensions will take effect if the House of Lords formally accepts the report in a debate next week.
The last individual member of the House to be suspended was Lord Savile who was punished for supporting Charles I against Parliament in 1642.