M & K Employee Solutions, Inc. v. Trustees of IAM National Pension Fund

This ERISA action concerns withdrawal liability assessed by the Trustees of the IAM National Pension Fund against M & K Employee Solutions, Inc. After the staffing company stopped contributing in 2025, the fund determined a partial withdrawal and demanded approximately $2.3 million. M & K challenged the assessment, arguing it was not an “employer” under ERISA and that the fund's actuarial assumptions were arbitrary. On May 21, 2026, the U.S. District Court for the Eastern District of Virginia ruled on cross-motions for summary judgment. The court found M & K met the statutory definition of an employer and the fund's calculation complied with ERISA. Summary judgment was granted to the trustees, ordering payment of the full liability plus interest and statutory damages.

The court granted the trustees' motion for summary judgment, holding M & K Employee Solutions, Inc. liable for the entire withdrawal assessment plus interest and damages.

Whether M & K Employee Solutions qualified as an “employer” subject to withdrawal liability under ERISA and whether the fund's liability calculation was arbitrary, capricious, or contrary to law.

The ruling reinforces a broad interpretation of “employer” under ERISA's withdrawal liability provisions, making it harder for entities to avoid pension obligations through cessation of contributions or restructuring. It heightens financial risk for staffing firms and other businesses participating in multiemployer plans.