Title 29 — LaborRelease 119-73

§1151 Administrative summary cease and desist orders and summary seizure orders against multiple employer welfare arrangements in financially hazardous condition

Title 29 › Chapter CHAPTER 18— - EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › Subchapter SUBCHAPTER I— - PROTECTION OF EMPLOYEE BENEFIT RIGHTS › Subtitle Subtitle B— - Regulatory Provisions › Part part 5— - administration and enforcement › § 1151

Last updated Apr 6, 2026|Official source

Summary

The Secretary can order a multiple employer welfare arrangement (a certain kind of group benefit plan; see section 1002(40)) to stop actions right away if the plan looks fraudulent, threatens public safety or welfare, or is likely to cause serious, immediate harm. Anyone hurt by that order can ask for a hearing, which can be kept confidential. The person asking must prove why the order should be lifted. After the hearing the Secretary can keep, change, or cancel the order. The Secretary can also quickly seize plan assets if the plan is in a financially hazardous condition and may make rules to carry out these powers. This does not apply to plans that are not MEWAs under section 1002(40)(A).

Full Legal Text

Title 29, §1151

Labor — Source: USLM XML via OLRC

(a)The Secretary may issue a cease and desist (ex parte) order under this subchapter if it appears to the Secretary that the alleged conduct of a multiple employer welfare arrangement described in section 1002(40) of this title, other than a plan or arrangement described in subsection (g), is fraudulent, or creates an immediate danger to the public safety or welfare, or is causing or can be reasonably expected to cause significant, imminent, and irreparable public injury.

(b)A person that is adversely affected by the issuance of a cease and desist order under subsection (a) may request a hearing by the Secretary regarding such order. The Secretary may require that a proceeding under this section, including all related information and evidence, be conducted in a confidential manner.

(c)The burden of proof in any hearing conducted under subsection (b) shall be on the party requesting the hearing to show cause why the cease and desist order should be set aside.

(d)Based upon the evidence presented at a hearing under subsection (b), the cease and desist order involved may be affirmed, modified, or set aside by the Secretary in whole or in part.

(e)The Secretary may issue a summary seizure order under this subchapter if it appears that a multiple employer welfare arrangement is in a financially hazardous condition.

(f)The Secretary may promulgate such regulations or other guidance as may be necessary or appropriate to carry out this section.

(g)This section shall not apply to any plan or arrangement that does not fall within the meaning of the term “multiple employer welfare arrangement” under section 1002(40)(A) of this title.

Reference

Citations & Metadata

Citation

29 U.S.C. § 1151

Title 29 — Labor

Last Updated

Apr 6, 2026

Release point: 119-73