Title 29, LaborRelease 119-110

§1151 Administrative Summary Cease and Desist Orders and Summary Seizure Orders Against Multiple Employer Welfare Arrangements in Financially Hazardous Condition

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

Last updated Sep 22, 2026|Official source

Summary

The Secretary can order a multiple employer welfare arrangement (MEWA) to stop operating right away without a prior hearing if the MEWA appears to be committing fraud, causing an immediate danger to public safety or welfare, or likely to cause serious, immediate, and irreparable public harm. A person hurt by that order can ask for a hearing. The Secretary can keep the hearing and its evidence private. 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 assets or take control if a MEWA is in a financially dangerous condition. The Secretary may make rules to carry out these powers. MEWA — a benefit plan that covers employees from more than one employer (see section 1002(40)(A)).

Full Legal Text

Title 29, §1151

Labor, Source: USLM XML via OLRC

(a)In general

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)Hearing

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)Burden of proof (d) Determination

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.

(e)Seizure

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)Regulations

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

(g)Exception

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

Sep 22, 2026

Release point: 119-110