Are certain employers and plans exempt from ERISA?
Yes. ERISA regulates private employers’ retirement and welfare benefit plans. The benefit plans of governmental entities as well as church plans usually do not have to comply with ERISA. In addition, to the extent a benefit plan is put in place by an employer only to comply with disability laws mandated by states, such as California, Hawaii, New Jersey, New York, Rhode Island or Puerto Rico (also called “statutory plans”) or state workers compensation laws, it is not governed by ERISA. Keep in mind though, that adding non-governmental employees to a government plan or offering more or better benefits than required by state law under a statutory plan can bring the plan under ERISA. Each employer must review the characteristics of each of its employee benefit arrangements to determine whether its benefit plan is an ERISA plan. This should be done in consultation with the employer’s experienced ERISA counsel. Unum relies on their customers to inform them of their need for ERISA support.
