FEDERALCourt of Appeals for the Fifth Circuit
1992

D.E.W., Inc. v. Local 93, Laborers' International Union of North America

957 F.2d 196Court of Appeals for the Fifth Circuit • Decided 1992Enforced

HOLDING

D.E.W., a general contractor, signed an adoption agreement to contribute to union benefit funds. The contractor paid into the funds only for union workers, not non-union workers. The court ruled that the adoption agreement required contributions for all laborers—union and non-union alike—because the agreement incorporated the collective bargaining agreement's contribution provisions by reference. This means contractors cannot pick and choose which employees trigger benefit fund obligations.

KEY FINDINGS

Flow-Down

When you adopt or flow down a collective bargaining agreement, you must contribute to benefit funds for all similarly situated employees, not just union members.

Broad Indemnification

Courts will enforce broad language in adoption agreements that incorporates CBA provisions by reference, even if you didn't sign the original CBA yourself.

FULL COURT OPINION