Accidental MEWAs

In a nutshell, a MEWA (multiple employer welfare arrangement) is an employee welfare plan offering benefits to employees of two or more employers without sufficient common ownership. MEWAs are subject to significant federal and state regulation and compliance can be complex. Importantly, intent to create a MEWA is not necessary for those regulations to apply and it is possible to create one by mistake. This Q&A briefly explains the common ownership rules as well as a summary of potential compliance obligations.