DOL determines welfare plan of employee leasing company is MEWA subject to state regulation
Article Abstract:
The Dept of Labor ruled that the welfare benefit plan established by Employee Staffing of America, Inc. was subject to state insurance regulation as a multiple employer welfare arrangement (MEWA). The company had requested a determination in hopes of qualifying for single-employer welfare plan treatment that would have exempted it from state regulation. The Dept of Labor stated that the company had not demonstrated facts supporting the finding that the employees covered by the plan had an exclusive employer-employee relationship with Employee Staffing of America.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
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Right to COBRA where qualifying event is a divorce vests in divorced spouse, not in dependent child
Article Abstract:
A US district court in the Western District of Missouri ruling in Smith v. Borden addressed a number of issues raised by the interaction of notification requirements under COBRA post-employment health care coverage rights and divorce as a qualifying event. The court's ruling that the right to notification vests only with divorcing spouses and not their dependent children appears to conflict with statutory authority. The court also found that actual harm is not required for notification penalties to be awarded.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1996
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Congress considers MEWA legislation
Article Abstract:
Legislative changes to ERISA's Title I have been proposed to protect employee health care benefits obtained through multiple employer welfare arrangements (MEWAs). Called 'The Multiple Employer Welfare Arrangement Reform Act,' the bill seeks to curtail alleged abuses of MEWA promoters. The bill would stipulate that MEWAs are covered by state insurance regulations and state that ERISA's preemption rules would not apply to MEWAs that are insufficiently financed.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1992
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