True or false; owner-only plans that cover only the owners and their spouses are not subject to Title I of ERISA.

Owner-only plans, which include only the business owners and their spouses, are structured in such a way that they fall outside the jurisdiction of Title I of the Employee Retirement Income Security Act (ERISA). Title I primarily handles the reporting, disclosure, and fiduciary responsibilities associated with employee benefit plans. However, since owner-only plans do not cover any employees other than the owners and their spouses, they are exempt from the stringent requirements imposed by ERISA. This exemption is predicated on the idea that the owners have a direct personal interest in the plan, ensuring a level of self-regulation that reduces the need for federal oversight.

In contrast, employee benefit plans that include a broader employee base must adhere to Title I provisions, reflecting the intent to protect worker interests. Thus, the statement that owner-only plans are not subject to Title I of ERISA is true, as these plans reflect the unique circumstances of small businesses where the owners manage their benefits without involving additional employees.