Apprenticeship Program

[Guest laborandemploy2009]

Association X is incorporated for the purpose of providing education to members of y field. Association X has member employers in y field. Association X provides approved apprenticeship training to the employees of its members.

Is this an ERISA plan? A MEWA? Can association avoid being considered either by running the accounting for the training programs through its general assets?

[JohnCheek]

I believe you do have an ERISA welfare plan, whether it is run through an Association, or run through a single employer.

However, you can avoid the ERISA filing burdens by filing a one-time notice with the govt and posting that notice in an appropriate location. See 29 CFR 2520.104.22 for details, and then keep a permanent record that you filed that notice.

The unfunded/general assets exception from filing could work if total participants are under 100, but the one-time notice exception is better, because it has no limit on participants.

[Guest laborandemploy2009]

I agree it is a MEWA, but I don't believe it is necessarily ERISA-covered.

Regarding its status as ERISA-covered, what about the requirements that it be a "plan" "maintained by an employer or employer group? (29 USC 1002(1) and (5)). If the Association is open to non-employers, for example, sole proprietors, the Association is not an "employer group" for ERISA purposes. See Marcella v. Capital District Physicians' Health Plan (2d Cir. 2002).

Any thoughts on this are appreciated.

[JohnCheek]

I've been hanging around lawyers too long, when I start to disagree with a future Supreme Court judge.

As you phrased your original post, I think that was an ERISA plan.

Marcella describes a different scenario- A plan that is open to any dues paying member, whether they are an employer, employee, a sole proprietor, or none of the above, is probably not an ERISA plan. But would one sole proprietor would be enough to kick it out of ERISA jusridiction?

I would have argued that ERISA applies if the primary purpose of the plan is to provide benefits to employees, who are participants by virtue of their employment, especially if the employers are paying for the benefits.