procedures / associate agreements

Rules for Associate Participation

The Labor Management Relations Act, under which the Trusts are created, requires that the basis for payment of employer contributions to the Trusts must be specified in a written agreement with the employer.

The requirement of a written agreement is satisfied by a collective bargaining agreement in the case of bargaining unit employees. However, nonbargaining employees are not covered by a collective bargaining agreement, so the Trustees developed rules for their participation, including a requirement that the employer execute a written agreement detailing the basis for payment of contributions for the participating nonbargaining employees. The nonbargaining employees allowed to participate in the Trusts are referred to as "Associates."

The purpose of these Rules for Associate Participation ("Rules") is to restate the rules developed by the Trustees. These Rules are intended for the internal use of the Trustees and the Trust Office in administering the participation of nonbargaining employees in the Trusts.

  1. Determining Need for Associate Agreement
  2. Employees Required to be Covered Under an Associate Agreement
  3. Trusts in Which Associates Must be Enrolled
  4. Adding Employees Under an Associate Agreement
  5. Terminating Contributions for an Associate
  6. Contributions Hours and Rates
  7. Nondiscrimination Test
  8. Duration
  9. Administration

1. Determining Need for Associate Agreement

There are three initial steps in determining whether a nonbargaining employee may participate in the Trusts under an Associate Agreement.

Step 1: Distinguishing Bargaining Employees from Nonbargaining Employees. Contributions for bargaining employees are paid under a collective bargaining agreement between the employer and the Western States Regional Council of Carpenters. ("Regional Council") or its affiliated local unions. Contributions for nonbargaining employees are paid under an Associate Agreement developed by the Trustees and signed by the employer and the Trustees. Therefore, the bargaining employees must be distinguished from the nonbargaining employees in order to know whether an Associate Agreement is needed. The Trustees and Northwest Carpenters Trusts will be guided by the following rules in distinguishing bargaining employees from nonbargaining employees.

  1. Nonbargaining Employees. Nonbargaining employees include the following:
    • Employees Working in Job Classifications Which are Not Covered by a Carpenters Bargaining Agreement. Employees are considered nonbargaining employees if they work in a job classification that is not under a collective bargaining agreement with the Regional Council or its affiliated local unions (hereafter, "Collective Bargaining Agreement").

      Examples include:
      • Superintendents
      • Project managers
      • Estimators
      • Regional Council or Local Union employees
      • Training Trust employees
    • Owners/Officers/Spouses. Nonbargaining employees also include employees who may or may not perform work of the type covered by a Collective Bargaining Agreement, but who are allied with management of the employer so as not to be considered part of the bargaining unit. Under this rule, nonbargaining employees will include: 5% or more shareholders; spouses of 5% or more shareholders; corporate officers; and spouses of corporate officers.
  2. Employees Working Under a Non-Carpenters Bargaining Agreement. The Trustees recognize that there are bargaining units covered by a collective bargaining agreement requiring contributions to the Trusts, but those bargaining units are not represented by the Regional Council or its affiliated local unions. (For example, the Northwest Carpenters Trusts and several Carpenters local unions have collective bargaining agreements with the OPEIU covering office staff and requiring contributions to the Northwest Carpenters Health and Security Trust.) The Trustees have discretion to permit participation of such bargaining units in the Trusts. When the Trustees permit participation of these bargaining units, the employees in the bargaining unit will be treated as bargaining unit employees, and an Associate Agreement is not required.
  3. Periodic Nonbargaining Duties Performed by Bargaining Employees. Bargaining unit employees who periodically perform some duties not typically covered by the Collective Bargaining Agreement will not be deemed nonbargaining employees by the Trustees when the duties are minor in nature and incidental to the position as a bargaining unit employee, e.g., running errands, moving equipment.
  4. Periodic Bargaining Duties Performed by Nonbargaining Employees. Associates who periodically perform duties of the type covered by the Collective Bargaining Agreement will not be deemed bargaining unit employees by the Trustees when the duties are minor in nature and incidental to the position as a nonbargaining employee.
  5. Trustees Will Generally Defer to Bargaining Parties. The Trustees will generally defer to a reasonable representation by the bargaining parties as to whether an employee is a collectively bargained employee.

Step 2: Determining Whether a Nonbargaining Employee Satisfies Definition of "Associate." Not all nonbargaining employees are allowed to participate in the Trusts. The Trustees limit participation to nonbargaining employees who meet the definition of "Associate." The following nonbargaining employees are considered Associates once covered by the Trusts' Associate Agreement.

  1. Employees of the Union or Other Labor Organization. Employees of the Regional Council or its affiliated local unions, a labor organization, or a joint labor-management cooperation committee are eligible to participate as Associates in the Trusts.
  2. Employees of the International Union. Employees of the United Brotherhood of Carpenters ("International") who previously participated in the applicable Trust as a bargaining unit employee or Associate are eligible to participate as Associates in the Trusts.
  3. Employees of a Training Trust. Employees of a Training Trust within the jurisdiction of the Regional Council are eligible to participate as Associates in the Trusts.
  4. Employees of a Signatory Employer.
    • Employee Must Have Prior Work as a Carpenter. An employee of an employer that is signatory to a Collective Bargaining Agreement is eligible to participate as an Associate, provided the employee previously worked as a Carpenter. This requirement is administered differently for the Northwest Carpenters Retirement Plan and Northwest Carpenters Individual Account Pension Plan than it is for the Northwest Carpenters Health and Security Plan, as follows.
      • Northwest Carpenters Retirement Plan and Northwest Carpenters Individual Account Pension Plan. A nonbargaining employee of a signatory employer must have previous employment in bargaining unit work under a Collective Bargaining Agreement with the Regional Council or its affiliated local unions that required contributions to that plan. This requirement is generally satisfied if the employee has at least one year of Credited (Future) Service earned as a bargaining unit employee under a Collective Bargaining Agreement requiring contributions to the applicable plan.
      • Northwest Carpenters Health and Security Plan. A nonbargaining employee of a signatory employer must have previous employment in a nonsupervisory capacity in work of a type covered by a Collective Bargaining Agreement.
  5. Limitation on Participation of Owners/Officers/Spouses. If an employee is an officer (e.g., president, vice-president, secretary, treasurer) or 5% or greater owner (e.g., shareholder) of the signatory employer, or spouse of an officer or 5% or greater owner of the employer, that employee is only eligible to participate as an Associate if the employer is: (1) a corporation; or (2) a limited liability company ("LLC") that elected to be treated as a corporation on treasury form 8832. Sole proprietors and partners may not participate in the Trusts.

Step 3: Determining Whether the Employer is Allowed to Cover Nonbargaining Employees. Only certain employers are allowed to cover nonbargaining employees as Associates. The rules an employer must satisfy are summarized as follows:

  1. Employer Must be Signatory to Full Collective Bargaining Agreement. In order to be eligible to cover nonbargaining employees as Associates in the Trusts, an employer must be signatory to a full-compliance Collective Bargaining Agreement or independent Collective Bargaining Agreement with the Regional Council or its local unions that requires contributions to the applicable Trust(s). The exception is a Training Trust, labor organization, or joint labor management cooperation committee, which may cover nonbargaining employees without being signatory to a Collective Bargaining Agreement, provided the entity is affiliated with the Regional Council.
  2. Employer Must Work in the Industry. To maintain an Associate Agreement, an employer must employ and report one or more bargaining unit employees for a minimum of 1,040 hours during each preceding two-consecutive calendar-year period (e.g., 1,040 hours from January 1, 2011 through December 31, 2012). An employer will have two full calendar years from the date the employer first signs an Associate Agreement to comply with this requirement. Northwest Carpenters Trusts will notify employers that fail to satisfy this requirement, and if the employer still has not satisfied the requirement by the end of the third-consecutive calendar-year, Associate participation will be terminated on January 1, following the end of the third-consecutive calendar year, unless the Trustees extend the date for compliance based upon the facts and circumstances (e.g., if employer fails to report 1,040 hours for bargaining unit employees between January 1, 2011 and December 31, 2012, the Northwest Carpenters Trusts notifies the employer in first half of 2013, and Associate participation is terminated January 1, 2014 if employer has not complied for two-consecutive calendar years from January 1, 2012 to December 31, 2013. Notwithstanding the foregoing, the Trustees may determine based upon the facts and circumstances that an employer is not actively working in the industry and terminate the Associate Agreement.
  3. Employer Must Sign Written Agreement. The employer must sign a written Associate Agreement with the applicable Trusts.
  4. Employer Must Employ Employee. To be eligible to participate as an Associate, an individual must actually be employed by the employer that signs the Associate Agreement. For example unemployed family members of the employer or former employees or retirees of the employer may not participate.

2. Employees Required to be Covered Under an Associate Agreement

The employer is not required to cover all nonbargaining unit employees as Associates.

3. Trusts in Which Associates Must be Enrolled

  1. Associate Enrollment Required in Training Trust. Nonbargaining employees participating as Associates must be enrolled in the training trust if the employer's Collective Bargaining Agreement requires contributions to it.
  2. Associate Participation in Other Trusts is Optional. In addition to any participation in the Training Trust, an Associate may be enrolled for participation in one or more of the following Trusts:
    • Northwest Carpenters Retirement Trust and Northwest Carpenters Individual Account Pension Trust;
    • Northwest Carpenters Health and Security Trust;
    • Contributions to and participation in the Northwest Carpenters Vacation Trust is not provided for Associates.
  3. Associate Enrollment in Same Trusts is Not Required. The employer is not required to cover all enrolled Associates in the same Trusts.
  4. Associate Participation in Trusts Selected by Employer. Associates may only participate in the Trusts selected by the employer in the Associate Agreement.
  5. Associates Are Eligible to Make Elective Deferrals. Associates who are enrolled in the Northwest Carpenters Retirement Trust and Northwest Carpenters Individual Account Pension Trust may make an Elective ("401(k)") Contribution to the individual account Trust by filing the appropriate written election form. The Elective Contribution must be made pursuant to the terms of the Northwest Carpenters Individual Account Pension Plan, including but not limited to the Plan provisions on the amount which may be deferred, the election period, and the nondiscrimination testing requirements.
  6. Dollar Bank Eligibility in Northwest Carpenters Health and Security Trust. Associates obtain eligibility under the dollar bank eligibility rules stated in the Northwest Carpenters Health and Security Plan.

4. Adding Employees Under the Associate Agreement

  1. Timeline for Adding Associates. An employer that is signatory to an existing Associate Agreement may add employees under the Associate Agreement under the following circumstances:
    • New Employees. New employees who qualify as Associates may be added to the Associate Agreement within 60 days of the date of hire.
    • Change in Job Classification. Bargaining unit employees who become nonbargaining employees may be added within 60 days of the date the employee becomes a nonbargaining employee provided the nonbargaining employee is an eligible Associate.
    • Failure to Enroll. Employees who are eligible, but not enrolled at the time of the employer's execution of a new Associate Agreement or within 60 days of the date of hire or qualification for enrollment may not be added as Associates until renewal of the employer's Collective Bargaining Agreement. Notwithstanding the foregoing, bargaining unit employees who become nonbargaining employees will be considered Associates from the date of the change in status even if the employer fails to report the change within 60 days, provided the employer made continuous contributions on behalf of the employee following the change in status, and provided further that when the change in status is reported or discovered the employee is added to the Associate Agreement effective as of the date of the change in status, and the employer is subject to the Associate rules (including the contribution rate) as of the date of the change in status.
  2. Documentation. An employer's request to add a new employee as an Associate or to change an existing employee's status from bargaining to nonbargaining (or vice versa) must be made in writing to Northwest Carpenters Trusts.

5. Terminating Contributions for an Associate

An employer may discontinue participation of an Associate in one or more of the selected Trusts (except the Training Trust). However, once an employee's participation is discontinued in a Trust, it may not thereafter be reinstated until renewal of the employer's Collective Bargaining Agreement, unless the employee moves from a nonbargainng unit position to a bargaining unit position and back to a nonbargaining position and participation in the selected Trusts is continuous.

6. Contribution Hours and Rates

  1. Hours to Report.
    • Northwest Carpenters Health and Security Trust. Contributions are to be paid monthly at a rate equal to 160 times the applicable hourly rate.
    • Northwest Carpenters Retirement Trust, Northwest Carpenters Individual Account Pension Trust, Northwest Carpenters Apprenticeship Trust. Except for 401(k) Elective Defferals, contributions are paid monthly on 40 hours per week, or portion thereof the Associate is paid or entitled to payment, at the applicable hourly reate. For example:
      • If the Associate is entitled to payment for one hour of work during the week, contributions are paid on 40 hours.
      • If the Associate is entitled to payment for 50 hours of work during the week, contributions are paid on 40 hours.
      • If the Associate is entitled to 40 hours of paid vacation (or paid leave) for the week, contributions are paid on 40 hours.
    • 401(k) Elective Deferrals. If an employer has received an effective election which has been made by the Associate to defer 401(k) Elective Contributions, the Elective Contributions are paid on a monthly basis based upon the hours the Associate is paid or entitled to payment.
  2. Rate. Contributions paid by signatory employers are at the rate set by the employer's Collective Bargaining Agreement. Contributions for labor organization employees and Training Trust employees will be at the rate set by the current Master Labor Agreement between the Regional Council and the representative contractor organization. 401(k) Elective Deferrals are at the rate elected by the Associate in accordance with the Northwest Carpenters Individual Account Pension Trust documents.
  3. Dues. If authorized by an Associate in a written authorization for check-off submitted to the employer in a form permitted by Section 302(c) of the Labor Management Relations Act, as amended, working dues will be deducted by the employer from the Associate's wages. The Northwest Carpenters Trusts will provide acknowledgement forms to employers with the Associate packet on which the Associate can confirm an authorization for dues check-off. The dues are to be reported and transmitted with the employer's monthly contribution remittance reports filed with the Northwest Carpenters Trusts.

7. Nondiscrimination Test

The employer must pass the Internal Revenue Code § 401(a)(4), § 410(b), and § 401(k) nondiscrimination tests in order to cover Associates in the Retirement Trust and Individual Account Pension Trust.

8. Duration

  1. Termination at Expiration of Collective Bargaining Agreement. An Associate Agreement signed by a signatory employer will automatically terminate on the date the signatory employer is no longer party to a full-compliance Collective Bargaining Agreement or independent Collective Bargaining Agreement providing for payment of contributions to the applicable Trust.
  2. Termination by Trusts. The Trustees may terminate an Associate Agreement as to any and all Trusts prior to expiration of a Collective Bargaining Agreement if: (1) the employer fails to remit when due contributions required for its Associates or bargaining unit employees; or (2) the acceptance by the Trustees of contributions would jeopardize the tax exempt status of the Trust or be subject to serious question as to the legality of all or any part thereof under applicable law; or (3) the application for a written Associate Agreement was made under false pretenses, or subsequent discovery indicates that the employer does not meet the eligibility requirements; or (4) the employer no longer works in the industry as determined above (Determining Need for Associate Agreement) or in the discretion of the Trustees; or (5) the employer refuses to sign an updated Associate Agreement as requested by the Trustees.
  3. Failure of Nondiscrimination Test. If an employer fails an Internal Revenue Code nondiscrimination test, the Trustees may terminate an Associate Agreement or an Associate's participation with respect to the Northwest Carpenters Retirement Trust or Northwest Carpenters Individual Account Pension Trust, or take whatever action may be required to satisfy the applicable nondiscrimination test. The Associate Agreement or an Associate's participation may be terminated retroactively if necessary to comply with the § 410(b) test.
  4. Termination by Employer. An employer may terminate an existing Associate Agreement with respect to all of its employees, but cannot thereafter request a new Associate Agreement until renewal of the employer's Collective Bargaining Agreement.

9. Administration

  1. Annual Notice. The Trustees will strive to send an annual notice to each contributing employer summarizing the Associate rules and requesting that the employer contact the Northwest Carpenters Trusts if contributions are being made for a nonbargaining employee who is not enrolled under an Associate Agreement. The notice may be included with a monthly remittance report.
  2. Periodic Update of Agreements. A new Associate Agreement will be requested from each employer on a periodic basis. The goal is to obtain a new Associate Agreement every three years. For administrative convenience, this may be done on a rolling three-year period so that a new Associate Agreement is obtained from one-third of the employers each calendar year.
  3. Notice to Parties. Upon enrollment of an Associate, Northwest Carpenters Trusts will send a form to the employer, Regional Council, and Associate confirming Associate status.
  4. Review of Associate Status Issues. The Boards of Trustees will appoint a committee consisting of at least two Labor Trustees and two Employer Trustees with authority to decide issues concerning Associate status, audit issues, or other matters concerning Associates.

Related:
Associate Agreements FAQs

Employer Checklist

Do you understand our expectations for employers? The links on the left can direct you to the details, but our requirements boil down to 4 simple things:

1. Fill out the form.
2. Write the check.
3. Deposit funds by due date.
4. Keep good records.

We know it can be frustrating when you don’t have the right information. Be sure to contact us with your questions and suggestions.

Quick Links