DOL Sues for Illegal Payroll Deductions in Violation of ERISA

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DOL Sues for Illegal Payroll Deductions in Violation of ERISA
Online Legal Media

Jan. 26, 2010

Excerpt: The US Department of Labor has sued the owners of Mid-States Express, a bankrupt trucking company, for illegally deducting money from employee paychecks for medical coverage without actually paying its employees' medical bills. Bruce Hartmann, an officer and owner of the company, did not tell his employees that they were not receiving any health coverage. The lawsuit further alleges that Bruce Hartmann and his father, Terry Hartmann, failed to remit in a timely manner over $1.5 million in 401(k) plan participant contributions and loan repayments, as well as $65,000 in contributions and loan repayments -- funds which they instead for internal operations.

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