Beware Employers’ Affordable Care Act “Certifications”

Some employers are sending documents to Unions and Trust Funds, asking them to sign , “certifying” that the Fund’s benefit plan is ACA compliant, and that the employer will therefore not have to pay penalties or fines. Some go on to ask the Trust Fund or Union to agree to indemnify the employer any fines or penalties he may have to pay.

It would appear that NO Union or Trust Fund should ever sign such a “certification.” No Union or Trust Fund can predict with total accuracy whether their benefit plans will always comply with regulations not  yet promulgated. And no one can certify that there will be absolute clarity about all those regulations and that Trusts and their benefit plans will always agree with the government on how to interpret and apply these regulations.

Therefore, Unions may want to agree meet and discuss the employer’s concerns, and reach some mutually agreeable solution to any such concerns – but pre-certifying perfection seems to be what might be called a good intention which can pave the road to H….

By Bill Sokol

Legal Developments