Ee's are Union AND Nonunion

[austin3515]

Company A has union and nonunion employees and is owned by Mr. A. Company B is established by Mr. A's wife (Mrs.A) however, Mr. A runs Company B (so spousal exception does not apply, and its one controlled group). Company B was established solely to get non-union work (I'm not 100% sure of the business purpose, but it was something like this). So some of the union employees are also doing non-union work under Company B. Enough of them are doing this so that I am concerned that I will not be able to pass coverage treating those employees as not benefitting following the end of my 410b6c grace period (fortunately, not until 1/1/2011).

Is there any issue with treating people both as union and nonunion on the same test?

[Kevin C]

It looks like 1.410(b)-6(d)(2)(i) requires you to count them as both union and non-union if they work for both A & B.

(2) Definition of collectively bargained employee

(i) In general. --A collectively bargained employee is an employee who is included in a unit of employees covered by an agreement that the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, provided that there is evidence that retirement benefits were the subject of good faith bargaining between employee representatives and the employer or employers. An employee is a collectively bargained employee regardless of whether the employee benefits under any plan of the employer. See section 7701(a)(46) and §301.7701-17T of this Chapter for additional requirements applicable to the collective bargaining agreement. An employee who performs hours of service during the plan year as both a collectively bargained employee and a noncollectively bargained employee is treated as a collectively bargained employee with respect to the hours of service performed as a collectively bargained employee and a noncollectively bargained employee with respect to the hours of service performed as a noncollectively bargained employee. See §1.410(b)-7© for disaggregation rules for plans benefiting collectively bargained and noncollectively bargained employees.

[austin3515]

And that's why I love these boards...