A Towson, Maryland rehabilitation center has been sued by the United States Department of Labor for allegedly mishandling employees’ retirement contributions. According to a news release, the U.S. Labor Dept. has filed a lawsuit against Towson Rehabilitation Center LLC and its CEO for failure to remit employees’ retirement contributions to the company’s 401K plan.
The lawsuit, which was filed in the U.S. District Court for the District of Maryland in Baltimore, seeks to restore all plan losses and “permanently bar the defendants from serving in a fiduciary capacity to any employee benefit plan…” covered by the Employee Retirement Income Security Act (ERISA).
A case such as this suggests an alleged breakdown in trust between the employer and employees–in this case, with workers’ retirement contributions at stake. Trust can also break down when someone is injured at work, and the employer may not always do what is in the best interest of the injured employee.