Jan 16, 2015 2:16 PM by News Staff
The United States Department of Labor has filed a lawsuit against Butte Steel and Fabrication in Chico, alleging the company withheld funds that should have been allocated to employees' 401 (k) plans.
The lawsuit, filed at the U.S. District Court for the Eastern District of California claims that employees' contributions to the company's retirement program from 2009 to August 2012 were never remitted, a violation of the Employee Retirement Income Security Act.
The suit alleges that Butte Steel president Jeffrey Brocheuser caused the business to withhold thousands of dollars from employees' paychecks. The funds were contributions from employees for contributions to the company's 401 (k) plan, but were placed instead into a corporate account.
The suit seeks damages in the form of full reimbursement plus demands that Brocheuser no longer run any plan protected by the Employee Retirement Income Security Act.
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