Article content provided by Fox Rothschild LLP.
Courts may be inclined in some withdrawal liability cases to narrowly apply the building and construction industry exemption based on the nature and location of the work performed, based on a recent decision.
It is commonly understood by union contractors that contribute to a multiemployer pension fund on behalf of their employees that the building and construction industry exemption will protect them and they will not owe withdrawal liability if they cease operations. Only if they “go non-union” do they potentially face withdrawal liability.
While that is correct as a general proposition, some employers may discover that the exemption may not apply to them depending on the nature of the work their union employees perform and where they perform it – and can cost them significantly.
Learn more about the services offered by Fox Rothschild LLP.
Contact a member of the Fox Rothschild LLP team.
Fox Rothschild LLP is a national law firm delivering strategic and practical solutions for our clients. Home to 1,000 attorneys in 29 offices coast to coast, Fox offers a team of accomplished professionals who have honed their legal skills in government and industry. We serve a wide range of clients, from Fortune 500 corporations to startups, family-owned businesses, nonprofit organizations and individuals.