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.
The attorneys at the New York-based law firm of Marrinan & Mazzola Mardon, P.C., have been providing knowledgeable legal advice to labor organizations for more than 50 years. To learn more about our services and various aspects of withdrawal liability, call our lawyers at 646-902-5727.
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 646-902-5727. You may also contact us online.