Since September 2023, plaintiffs have filed numerous class action lawsuits alleging that the use of 401(k) forfeitures to offset future employer contributions violates the Employee Retirement Income Security Act of 1974...more
In Hutchins v. HP Inc., the U.S. District Court for the Northern District of California dismissed – with prejudice – the plaintiff's claims challenging the use of forfeited employer 401(k) contributions. This is the latest...more
2/13/2025
/ 401k ,
Benefit Plan Sponsors ,
Class Action ,
Compliance ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employment Litigation ,
ERISA Litigation ,
Fiduciary Duty ,
Forfeiture ,
Retirement Plan
The U.S. District Court for the Western District of Arkansas issued its written decision in Shipp v. Central States Manufacturing, Inc. on July 5, 2024, declining to dismiss the case against Central States Manufacturing Inc....more
Historically, courts around the country have approached the enforceability of class action waivers and arbitration provisions in ESOP and Employee Retirement Income Security Act of 1974 (ERISA) plan documents differently,...more
9/8/2022
/ Arbitration ,
Breach of Duty ,
Class Action ,
Class Action Arbitration Waivers ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employment Litigation ,
ESOP ,
Fiduciary Duty ,
Mandatory Arbitration Clauses ,
Plan Documents ,
Putative Class Actions ,
Statutory Remedies
Since late July, at least 10 lawsuits have been filed against large 401(k) plan sponsors that offer certain BlackRock Inc. target-date funds (TDF) among their investment options. In an unexpected pivot away from the 401(k)...more
9/1/2022
/ 401k ,
Benefit Plan Sponsors ,
BlackRock ,
Class Action ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employment Litigation ,
Excessive Fees ,
Fiduciary Duty ,
Index Funds ,
Mutual Funds ,
Retirement Plan ,
Target Date Funds
The U.S. Court of Appeals for the Fifth Circuit issued a potentially landmark decision in Swales v. KLLM Transport Services, L.L.C. on Jan. 12, 2021, rejecting more than 30 years of case law related to conditional...more
1/18/2021
/ Appeals ,
Class Action ,
Class Certification ,
Collective Actions ,
Employer Liability Issues ,
Employment Litigation ,
Fair Labor Standards Act (FLSA) ,
Independent Contractors ,
Misclassification ,
Notice Requirements ,
Rules of Civil Procedure
The U.S. Court of Appeals for the Fifth Circuit, in an issue of first impression, has answered a critical question in Fair Labor Standards Act (FLSA) overtime disputes: "Who has the burden of proof on whether bonuses are...more