This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
Petitioners argue that a sole owner may be a participant in an employee benefit plan if another common law employee participates, regardless of whether the entity operates as a sole proprietorship, partnership, or corporation.
The United States, as amicus, contends that all working owners—including shareholders, partners, and sole proprietors—should be treated as participants under ERISA, just like other employees.
Background and question before the Court
The case concerns whether a sole owner can be considered an employee and therefore a participant in the Raymond B. Yates Profit Sharing Plan under ERISA.
The Chief Justice asked whether, if the petitioner is deemed an employee, the Court must address the broader alienation issue or simply remand the case.
What each side argues
Petitioners
Petitioners maintain that a sole owner may be a participant in an employee benefit plan when another common law employee participates, irrespective of the entity’s legal form.
According to C. Mark Troutman, petitioners request that the Court clarify that all types of working owners—not only common‑law employees—are eligible participants under ERISA.
Respondent
Source-limited. The record does not yet support a complete account.
What happened at oral argument
Counsel for the petitioners were James A. Holifield and Matthew D. Roberts (amicus), while counsel for the respondent was C. Mark Troutman.
The Chief Justice asked whether, after deciding the employee‑status issue, the Court must address the alienation question or simply remand the case.
According to Justice, a Justice inquired about the status of partners under the plan.
According to Justice, another Justice questioned whether the $50,000 repayment should be returned to the plan.
What the Court decided
Why it matters
Clarifying that working owners are participants under ERISA would affect the benefits coverage of hundreds of thousands of owners and employees.
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- 17eeac26f0a7630df3be-r1-fff05b50381f3906.pdforal argument transcript
Guide generated September 20, 2026. Automated validation accepted this version.