What to do if my former company automatically enrolled me in their 401K without properly notifying me?

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What to do if my former company automatically enrolled me in their 401K without properly notifying me?

I had worked for the holding company several years ago, and communication was sent to my previous address, in another state. I provided my current address upon hire. Eventually, I received some communication at my current address from the 401K company, and I called, however, they did not use my company’s name and told me “not to worry about it,” since there was no money in it when I contacted them. My relationship with my company ended shortly after that and my final paycheck had 3% withdrawn. I want my former company to pay withdrawal fees, however they are saying they’re not responsible. Can you please let me know what legal obligation they have?.

Asked on September 4, 2012 under Employment Labor Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you were automatically enrolled in your former employer's 401 k retirement plan without your approval or authorization and funds were taken from your pay check for such program and you wish reimbursement, you need to do the following:

1. write your former employer that your enrollment was due to error on its part;

2. request that your enrollment be rescinded;

3. request reimbursement of all monies taken from your pay check(s) by a certain date;

4. keep a copy of the letter for future use and reference.

If the due date comes and goes, consult with a representative with your local department of labor about the matter and/or bring a small claims court action against your former employer for the amount of money taken from your pay check(s) for such 401 k plan.


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