Shub Law Firm is investigating claims that employees were wrongfully cheated out of retirement funds and earnings as the result of an unlawful forfeiture clause contained in certain employee contracts.
In certain industries companies that utilize deferred compensation, pension plans have been including forfeiture clauses, in violation of Employment Retirement Investment Security Act (‘ERISA”). “Deferred Compensation” is a type of pension or supplemental payment in which employees elect to have some of their pay withheld to be paid upon their leave from the company. This type of pension, enshrined and protected by ERISA is nonforfeitable.
Many companies offer “deferred compensation” in lieu of a pension, referred to be the ERISA as a “pension benefit plan.” To satisfy ERISA requirements, an employee must complete three years of service and have a nonforfeitable right to 100% of their benefit built up by employer contributions. These are completely lawful retirement plans enjoyed by many employees across the country in large part due to tax advantages. Employers can also, in a pension plan, contribute to the fund that the employee is deferring compensation into.
However, some companies have included “forfeiture” clauses wherein employees who trigger the forfeiture by working for a competitive company lose their accrued benefit. This type of clause is not only unlawful, but indeed cheats the employee out of an accrued benefit that is rightfully theirs and one that they’ve worked hard to build up.
We’re here to help employees fight back against employers and companies that are unjustly enriched by adding forfeiture clauses and not upholding a proper ERISA-satisfied deferred compensation plan. Companies should not be allowed to cheat their employees out of a deferred compensation-based retirement if they have offered it to them. Our attorneys specialize in representing individuals who have been wronged by companies that seek to undermine their trust.
If you or someone you know was enrolled in a “deferred compensation” plan at their job and were denied your benefit due to an unlawful “forfeiture” or “forfeiture clause”, please contact us via email at firstname.lastname@example.org or give us a call at 856-772-7200. Shub Law Firm is a national leader in representing individuals, just like you, who have been wronged by big companies who put profits over promises kept to the individuals providing those profits. Our experience class action attorneys are here to help you get justice. Contact us now!