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Claim Your Free Copy of Overtime Primer: Highlights from the New Regulations

The federal DOL overtime regulations go into effect this year. Are you ready?

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This report includes a summary of key changes, including the salary level test and salary basis test.

As a bonus, we've included a handy flowchart to help you determine exemption status under the FLSA.

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February 21, 2008
Supreme Court: Employees Can Sue Over Mishandling of 401(k)

The Supreme Court has ruled that an employee can sue an employer for mishandling his or her 401(k) account.

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In the case, an employee asked his employer, a consulting firm, to switch from one mutual fund to another, but the employer never made the change. The employee argued that the mistake cost him $150,000 in lost profits.

The Employee Retirement Income Security Act allows the recovery of "any losses to the plan" that were caused by a fiduciary breach.

The question before the Supreme Court was whether that provision applies to losses to an individual account.

The Supreme Court held that although "§502(a)(2) [of the Employee Retirement Income Security Act] does not provide a remedy for individual injuries distinct from plan injuries, that provision does authorize recovery for fiduciary breaches that impair the value of plan assets in a participant's individual account. Accordingly, the judgment of the Court of Appeals is vacated, and the case is remanded for further proceedings consistent with this opinion."


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Top 100 FLSA Overtime Q&As
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