The United Association of Journeymen and Apprentices Local Union No. 74 is taking another swing at justice after the Third Circuit Court of Appeals struck down its $3.5 million pension victory earlier this year. The union claims the appellate panel’s decision conflicts directly with U.S. Supreme Court precedent and could send shockwaves through organized labor cases nationwide.
In a Friday petition for rehearing, the pipe fitters and plumbers’ union — alongside several benefit funds and trustees — urged the Third Circuit to reconsider or rehear the case en banc, arguing that the panel’s split September ruling misinterpreted the Employee Retirement Income Security Act (ERISA) and ignored key principles set forth by the Supreme Court.
At the Heart of the Battle: What Counts as “Hours Paid”?
The dispute stems from a 2020 ERISA lawsuit accusing Jones Lang LaSalle Americas Inc. (JLL) of failing to properly account for overtime pay when calculating pension contributions. The Delaware district court initially sided with the union in 2024, awarding $3.5 million in unpaid contributions, audit costs, liquidated damages, and interest.
But the Third Circuit reversed that decision in September, declaring that under the plain language of the collective bargaining agreement (CBA), JLL was not required to increase pension contributions based on overtime wages. The appellate panel concluded that while overtime boosts an employee’s “applicable wage rate,” it does not alter the number of hours paid — the metric used to calculate contributions.
