Employer's failure to make payments; notice; damages
Sec. 4. (a) This section applies to an employer who has contracted
in writing to make payments to an employee welfare plan, vacation
plan, health plan, dental plan, insurance plan, supplemental
unemployment plan, benefit plan, profit-sharing plan, pension plan,
industry plan, or any other employee plan either by agreement with
an employee or an employee benefit plan group or by a collective
bargaining agreement.
(b) Not later than seven (7) days after failing to make a payment
under an agreement covered by subsection (a), the employer shall
give written notice of nonpayment to:
(1) the employee on whose behalf the payment should have
been made;
(2) an authorized representative of such an employee;
(3) an authorized representative of a union that represents such
an employee;
(4) the authorized representative of the benefit plan to which the
payment should have been made; or
(5) the trustee of the employee to which the payment should
have been made.
(c) An injured employee may recover double damages plus costs
and attorney fees from an employer who fails to give notice under
subsection (b) and who fails to make those payments described in
subsection (a) on the employee's behalf. However, an employer is not
liable under this section if he shows good cause for his failure to
make the payments described in subsection (a) or his failure to give
the written notice required in subsection (b). "Good cause" does not
include the employer's financial inability to make the payments
described in subsection (a).
As added by Acts 1982, P.L.134, SEC.1.
Last modified: May 27, 2006