WITHDRAWAL LIABILITY

Representing Labor Unions & Their Members

Withdrawal Liability

Multiemployer/union benefit plans are plans that two or more employers make contributions to under the terms of a collective bargaining agreement. These types of plans are subject to federal regulations as outlined in the Employee Retirement Income Security Act (ERISA). Under certain circumstances, if an employer ceases to make contributions or otherwise significantly reduces its contributions to an underfunded plan, it may be subject to withdrawal liability penalties.

When Is Withdrawal Liability Triggered?

Withdrawal liability may occur when an employer experiences a significant reduction in the workforce of participating union employees, also known as a partial withdrawal. Another circumstance where withdrawal liability is triggered occurs when there is a total reduction in the number of participating union employees, also known as a complete withdrawal. Finally, liability may also be triggered when there is a withdrawal of all employees from a plan, known as a mass withdrawal.

When a withdrawal occurs, an employer may be liable for the share that it was expected to contribute to the fund. There are numerous exceptions to withdrawal liability, including differing regulations for specific industries. We can help provide legal counsel regarding liability for all ERISA benefit plans.

Contact Us With Your ERISA Law Questions

We provide representation to all labor unions. To find out more about our legal services, call us at (212) 425-3240. You may also contact us online.

Why us

COMPREHENSIVE LABOR UNION REPRESENTATION SINCE 1955

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Dedicated Legal Counsel For Labor Unions

Mazzola Mardon, P.C., represents its labor union clients in organizing, negotiations, arbitrations, federal and state court litigation, and proceedings before administrative agencies.

The firm’s ERISA practice involves representing multiemployer and single-employer Taft-Hartley pension, health and welfare, scholarship, and royalty funds.

Contact Us to Learn More About Our Legal Services

We work hard to help meet all of the unique legal needs of labor unions. To learn more, call us at (212) 425-3240.

WITHDRAWAL LIABILITY

Representing Labor Unions & Their Members