Written By Larry Beebe
Bond Beebe
P: 301.272.6025 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

“All of Our Employers are Honest”

How could any trustee make that statement with certainty?  Let us assume that statement is correct.  How do you know that all or your “honest employers” have reported their obligations accurately under the collective bargaining agreement (CBA).  An employer may not be interpreting the CBA terms correctly.  For example, the employer may only be reporting up to 40 hours a week in a situation where the CBA clearly obligates the employer to remit for all hours paid with no weekly maximum.  The employer may not be reporting vacation and/or holiday hours because those are not hours worked even though the CBA requires contributions for all hours paid.

Now let’s get back to the statement that all employers are honest.  Most are, but some are not.  In a financial crisis, an employer who might otherwise be honest might be motivated not to report hours to the plans.

Employers signed to a CBA know that they eventually will be audited.  That fact alone helps to keep them honest.

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