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Understanding Multiple Employer Welfare Arrangement: A Comprehensive Guide
Definition & Meaning
A multiple employer welfare arrangement (MEWA) is a type of employee welfare benefit plan that is created to provide benefits to employees from two or more employers. This arrangement can also include benefits for self-employed individuals and their beneficiaries. However, MEWAs do not include plans that are established under collective bargaining agreements, by rural electric cooperatives, or by rural telephone cooperative associations.
Table of content
Legal Use & context
MEWAs are primarily used in the context of employee benefits and labor law. They allow multiple employers to band together to provide health insurance and other welfare benefits to their employees, which can be particularly beneficial for small businesses. Users may manage related forms or procedures through legal templates available from providers like US Legal Forms, which can help streamline the process of establishing a MEWA.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A group of local restaurants forms a MEWA to provide health insurance to their employees, allowing them to offer competitive benefits while sharing costs.
Example 2: Several independent contractors in the construction industry create a MEWA to access affordable health benefits, which they could not obtain individually. (hypothetical example)
Relevant laws & statutes
MEWAs are governed by the Employee Retirement Income Security Act (ERISA) and relevant sections of the United States Code, specifically 29 USCS § 1002(40)A. These laws outline the requirements and limitations of MEWAs.
State-by-state differences
State
Notes
California
MEWAs must comply with state insurance regulations.
Texas
Specific registration requirements for MEWAs exist.
New York
MEWAs are subject to additional state oversight.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Employee Welfare Benefit Plan
A plan that provides benefits to employees.
MEWAs involve multiple employers, while welfare plans can be single-employer.
Collective Bargaining Agreement
A contract between employers and a union.
MEWAs are not established under collective bargaining agreements.
Common misunderstandings
What to do if this term applies to you
If you are considering forming a MEWA, start by consulting with legal professionals to ensure compliance with federal and state laws. You can also explore US Legal Forms for templates that can assist in the establishment process. If the situation is complex, seeking professional legal advice is recommended.
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