Insult to Injury—Court Allows Expulsion of Employers from Trust Fund, Resulting in Unfunded Vested Liability/ Williams Kastner Labor & Employment Advisor

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The United States Court of Appeals for the Eighth Circuit issued an interesting opinion recently allowing a union trust fund to expel employers from the fund for lawfully using subcontractors to perform bargaining unit work. In Borntrager v. Central States Pension Fund, the Fund expelled employers for violating the fund’s “adverse selection” rule by replacing some of their employees with subcontractors. This article explains the court's decision, and the potential ramifications.

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