Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
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.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

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."


Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
Copyright © 2018 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: