state law

[stevena]

anyone know where I can find whether state wage law would allow automatic (negative) enrollment? specifically looking for NC

thanks!

[stephen]

Pehaps PAX can help with this one.

[stevena]

I just found it, thank you anyway!

I am writing up some slides for a presentation on Friday. Postitives and Negatives, things to think about/decide, implementation, etc.

if anyone has any thoughtsI would love to hear them.

[Locust]

What was the answer? Doesn't NC require a "writing" to reduce pay?

[stevena]

Yes, the state of NC has an anti garnishment law.

I am wondering if anyone knows the answer to whether employees who have ALREADY signed enrollment forms with 0% election may subsequently be autoenrolled if the plan is amended for autoenrollment (with the proper notice given to the employee.) The ERISA outline books says yes, but other things I have read online say no.

I also found one source that says the plan must be amended to allow for deferral changes "at any time", (rather than quarterly, etc.)...but other things I have read say that the plan just has to allow for deferral changes yearly, even after amending to allow for auto enrollment.

This seems to be a very current topic, so I am not sure what if any answers have been finalized. But I want to give the employer all the info I can find.

Thanks for any input!

[401 Chaos]

Stevena.

I am interested in whether you can point me to any materials that examine this on a state-by-state or nationwide basis.

Also, does automatic enrollment where participants are given notice and opportunity to opt out clearly equate to wage garnishment? There seems to me to be a big difference between having 3% of your pay deducted from pay and cotnributed to a 401(k) plan account after you've been given ample opportunity to avoid it (as well as the ability to immediately stop it) versus having an employer garnish your wages due to an IRS levy or court order which the participant cannot stop (other than by paying the obligation some other way) but I do not know anything about NC laws.

[E as in ERISA]

This web site linked to this article the first of June

http://www.benefitnews.com/detail.cfm?id=7530

[Locust]

I think the purpose of the these provisions in some states' wage and hour laws is to eliminate all doubt that the employee knows about the payroll deduction and agreed to it.

You have the issue of whether ERISA preempts state law.

You also have the issue of remedies. Maybe the worst that can happen to the company is that the company has to refund the deferrals if requested by the employee?