Now is a good time to review the eligibility requirements for your health and welfare. If you word them correctly, you can exclude people who work for the company under third-party contracts.
Have your attorneys assist with the review. They can tailor restrictions that fit your circumstances—and help you avoid unpleasant surprises later if subcontractors or temps sue.
Recent case: The 9th Circuit upheld the dismissal of an ERISA class-action lawsuit against McGraw-Hill Cos. Inc., agreeing with the trial court that the plaintiffs, who worked at McGraw-Hill through a staffing agency, were not eligible for because they weren’t on the company .
The benefits plans specified that only employees on the company’s U.S. payroll were eligible. (Curry v. CTB McGraw-Hill LLC, U.S. Court of Appeals for the 9th Circuit, No. 06-15397, 2008)