Expanding the Building & Construction Exemption: What This Case Means for Contractors
In a significant decision, the Walker Specialty Construction, Inc. v. Board of Trustees of the Construction Industry and Laborers Joint Pension Trust for Southern Nevada case clarifies how broadly the “building and construction industry” exemption under the Multiemployer Pension Plan Amendments Act (MPPAA) should be interpreted. The court ruled that asbestos abatement work qualifies for the exemption, reinforcing that construction is not limited to new building but includes maintenance, repair, alteration, and even demolition activities essential to a structure’s use. Click here for more information.
For the contractor involved, the impact was substantial. The pension fund had assessed nearly $2.8 million in withdrawal liability after the company ceased operations in the jurisdiction. By successfully demonstrating that its work fell within the building and construction exemption, the contractor was relieved of this liability and entitled to recover payments already made during the dispute.
This ruling carries broader implications for signatory contractors. It affirms that many specialty trades, particularly those involved in remediation, renovation, and demolition, may qualify for the exemption if their work directly affects the structure and usability of a building. It also reinforces the importance of understanding how pension funds interpret “construction” versus how courts may ultimately define it.
For contractors, the key takeaway is clear: eligibility for the building and construction exemption can significantly limit exposure to withdrawal liability, but it often requires careful legal and operational documentation to support the nature of the work performed. Click here for the decision.