If myemployer has been taking money out of my check for my 401k and not sending the money to the investment company for over a year, what should I do?

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If myemployer has been taking money out of my check for my 401k and not sending the money to the investment company for over a year, what should I do?

What type of action should I take? Legal action or contact the department of labor?

Asked on August 2, 2011 New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

What you employer is doing is definitely illegal; if done knowingly or intentionally, it may be a crime, too (e.g. embezzlement or some other form of theft).

You should probably talk to an attorney immediately about this situation; you may wish to file a lawsuit promptly, one which both seeks compensation (e.g. the money the employer took from you and other damages), and also a court order barring the employer from taking any more money from you and also from transferring or depleting its own assets--the latter to make sure there is money to pay you. Time is of the essence, if this wrongdoing--whether someone, like the controller or the company owner, taking the money herself, or using the money to keep the company afloat and pay bills--since the longer you wait, the greater the chance all the money will be gone and you will never collect. If other employees are also affected, you may wish to retain an attorney jointly, to spread the cost. The lawyer may also recommend contacting the authorities. Good luck.


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