Jul 23, 2019

What welfare benefit plans are not subject to ERISA?


The following welfare benefit arrangements are not subject to the general fiduciary provisions of ERISA:  

1.    Payroll practices that are established by an employer and that provide for payment by an employer to employees on account of overtime pay, shift premiums, holiday premiums or weekend premiums, sick pay, vacation pay, jury duty pay, and pay while on leave for military service;  

2.    The maintenance of on-premises facilities such as recreation, dining, or medical/first aid for the treatment of work-related injuries or illness occurring during normal work hours, or other facilities (excluding day care centers) for use by employees;

3.    Programs for the provision of holiday gifts such as turkeys or hams;

4.    Sales to employees of articles or commodities (whether or not they are offered at below-market prices) of the kind the employer offers for sale in the regular course of business;

5.    Hiring halls maintained by one or more employers, employee organizations, or both;

6.    Remembrance funds under which contributions are made to provide remembrances such as flowers, small gifts, or obituary notices on occasion of the illness, hospitalization, or death of an employee;

7.    Strike funds maintained by an employee organization to provide payment to its members during strikes and for related purposes;

8.    Industry advancement programs that have no employee participants and do not provide benefits, regardless of whether the program serves as a conduit through which funds or other assets are channeled to employee benefit plans subject to ERISA; and  

9.    Unfunded scholarship programs, including tuition and education reimbursement programs, under which payments are made solely from the general assets of an employer or employee organization


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