PEOs

[Guest ANNEBV]

We have a client, a PEO, with a multiple employer plan. One of the potential participating employers wants to include union employees in "their" plan. The PEO plan excludes union employees.

Do participating employers have any flexibility in the definition of employee?

[Alf]

Check the provisions of the plan document regarding the adoption and amendment of the plan by individual employers. I doubt that employers are required to adopt the plan "all or nothing," so I'll bet that individualized changes can be made by adopting employers. Of course, the changes will need to be carefully documented.