I would like to just ask a simple question here. Is it legal for an employer to take money from an employee's investments even though the employee does not put any money into it? The investment plan is like a 401K plan but with the employee's investment being built up solely on part of the profit set aside by the employer, if any, they might have accumulated over the past year. It is also like a 401K plan in that the employee's investments are managed by an outside third party. If an employer can take money out of an employee's investment due to loss of revenue for the year, than someone needs to explain to me why this is legal? To be honest here, embezzlement is embezzlement no matter how you look at it. :confused:

I would like to just ask a simple question here. Is it legal for an employer to take money from an employee's investments even though the employee does not put any money into it? The investment plan is like a 401K plan but with the employee's investment being built up solely on part of the profit set aside by the employer, if any, they might have accumulated over the past year. It is also like a 401K plan in that the employee's investments are managed by an outside third party. If an employer can take money out of an employee's investment due to loss of revenue for the year, than someone needs to explain to me why this is legal? To be honest here, embezzlement is embezzlement no matter how you look at it. :confused:

I suggest that you contact the U.S. Dept. of Labor's Employee Benefits Security Administration, http://www.dol.gov/ebsa/.

Good luck.

I did contact the Employee Benefits Security Administration themselves but they gave me the run around so I took this issue straight to the U.S. Secretaries of Labor and Treasurer themselves but I yet hear what is being done about this issue of them taking money away from the employee's investments. :(
So I'm going to take this as a good sign that they are looking into this issue and lets hope that the employees get back what was rightfully their's in the first place.
Again thanks because the employee's there are going to need all the help and luck that they can get right now.

What it sounds like is that the 401K fund lost money and the company probably takes out some kind of administration fees periodically for running the 401K, which they should disclose to employees but maybe never did. Also, it could be the 401K fund is funded with company stock as its sole or primary component. In any event, you should get the 401K prospectus or information provided to all employees and read up on what it really is. You may have thought it was one thing, but it may have been changed to be another without you knowing it.