Monday, 21 July 2003

2nd Circuit Favors Small Owners Over Teamster Trustees In Benefits Battle

In order to combat what it urged was erroneous reporting of hours worked by employers owned by one person or a married couple, the Trustees of various Teamster benefit plans created a special rule that if an owner or an owner's family members of a business owned by one person or a couple, worked even one hour in a month, the company must make a contribution as if the individual worked 40 hours per week, each week of the month. In LaBarbera v. J.D. Collyer Equipment Corp. (2nd Cir. 7/21/03) [pdf], the court affirmed the trial court's grant of summary judgment holding that the rule exceeded the Trustees' power under the collective bargaining agreement.

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