The Nashville Post reports today that the U.S. Department of Labor filed a lawsuit against Corinthian Custom Homes, Inc. for failing to pay withheld employee funds into the employees’ 401(k) accounts. More details are available here.
This is a great sign that the government is watching employers’ bankruptcy filings for this very common issue and taking action when those employers dip into funds it had a fiduciary duty to protect. Corinthian Custom Homes left a lot of people unpaid, and it’s good to see that the Dept. of Labor is protecting the former employees from this type of theft.
Creditors Rights 101 