Retirement

ESOP’s fable: The tightwad and the vanishing money

04/02/2009

According to a complaint filed with the DOL, Kellogg Auto Supply of Cortland disbursed ESOP benefits in 1999 based on the stock’s 1998 valuation. But it made no further distributions until 2008. The DOL filed suit charging the company and its president, Richard Coates, with violating ERISA.

Long-time Caterpillar workers lose retiree medical benefits

03/18/2009

In its 1998 collective-bargaining agreement, Caterpillar promised to provide retiree health benefits to its workers at no cost to them. By 2005, Caterpillar recognized it could no longer provide the health benefits without the retirees chipping in. When labor and management sat down at the table to hammer out a new agreement, retiree health costs was one of the sticking points …

Study cites Illinois as a hotbed of wage-and-hour claims

03/13/2009

A recent report offers some ominous news for Illinois employers. Illinois is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

DOL: TMG National Holdings held onto too much

03/13/2009

The U.S. Department of Labor has filed suit against TMG National Holdings, a real estate development company based in Chicago, alleging it diverted funds intended for employee retirement benefits.

Study cites New York as a hotbed of wage-and-hour claims

03/06/2009

A recent report offers some ominous news for New York employers. New York is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

Warn employees of the dangers of dipping into 401(k) funds

03/03/2009

As the economic meltdown worsens, employees facing personal budget crises may go looking for their own financial bailouts—by tapping into 401(k) savings. They may turn to HR pros like you to learn how to take hardship withdrawals or borrow against their investments. There are good reasons to steer them away from treating their retirement nest eggs as rainy-day funds.

Study cites Texas as a hotbed of wage-and-hour claims

03/03/2009

A recent report offers some ominous news for Texas employers. Texas is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

Study cites N.J. as a hotbed of wage-and-hour claims

02/24/2009

A recent report offers some ominous news for New Jersey employers. New Jersey is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year. Advice: Brace yourself for even more wage-and-hour litigation. Such cases typically increase during economic downturns …

Study: Pennsylvania a hotbed for W&H claims

02/24/2009

A recent report offers some ominous news for Pennsylvania employers. Pennsylvania is one of eight states that saw an increase in class-action wage-and-hour cases filed in state court last year, according to the Seyfarth Shaw law firm’s new Workplace Class Action Litigation Report.

Heading to bargaining table? Review contract language before changing benefits

02/12/2009

If your organization has a collective-bargaining agreement with a union, make sure you check with counsel before you make any changes to benefits. In some cases, promises made in past contracts—such as a promise to provide retiree health benefits—may be a binding, vested promise that cannot be undone, at least for those who have already qualified.