employer witholding 401K from LCA base salary

[GIS05]

Hi Everyone,

I'm new to this forum. Here is my question.

My employer is not paying the LCA base salary to me. He is taking part of the salary and putting in a 401k without my consent. He said he will pay me that 401 K money if I stay with the company for 4 years. He is giving the pay stubs alright with LCA base salary figures but showing the "part of the salary" under the 401K. Is this legal?

Can I get back this money? Can DOL help me in this matter?

I appreciate your suggestions in advance!

Thanks

[JoeF]

If you did not sign the 401 stuff, it is not legal.

Get a labor lawyer involved.

[livliv]

It is actually legal to automatically withhold and I think this is fine. But, if you specifically ask them in writing that you don't want to contribute, they should not do it. Of course remember this is your own money and you will keep it. You will get it back after you retire. Is this a real 401k or just a sham?

401k is generally a very good way to save for retirement. It does not matter if you are in the US or not at the time of retirement, you still get the money.

[livliv]

Another thing to consider is whether the employer is matching your contributions. Also, you should have a say in what funds that money gets invested in.

[t75]

Your 401k contribution may be company policy. It is often not voluntary but required of all employees. It is part of your base salary. I see nothing illegal about the salary reporting as you describe it.

The 401K money YOU contribute is yours although you cannot access it without penalty until age 59.5. His contribution "vests" and becomes yours only according to the corporate schedule that is the same for all employees.

If you continue to have questions, take all of your documentation, including any corporate handbook info on 401K, to an employment attorney for an opinion. You can only get a 100% correct answer from a qualified attorney who has reviewed your contracts.

[GIS05]

Thank you all for your responses. I appreciate it.

Let me clear things a little bit. This is a forcible 401K -- kind of a sham. He is not contributing any thing to the 401k. Instead of paying me higher salary he is keeping the money himself and he kept a clause - I will be eligible only after working with the company for 4 years. Just to make me work like a slave for 4 years with the below-pay-salary . Also, I have never agreed to the 401k and I asked him not to deduct it in writing. I recently resigned with the company but I want to get the money that he was holding for one year under 401k.

What is the best way to get the money? Do you know of any reputed attorneys (who charges reasonably) that I can take services of?

[GIS05]

It is kind of a sham. I didn't agree to the 401k but he was deducting and keeping it with him.

It is actually legal to automatically withhold and I think this is fine. But, if you specifically ask them in writing that you don't want to contribute, they should not do it. Of course remember this is your own money and you will keep it. You will get it back after you retire. Is this a real 401k or just a sham?

401k is generally a very good way to save for retirement. It does not matter if you are in the US or not at the time of retirement, you still get the money.

[GIS05]

Do you know any labor lawyers that I can take services of?

If you did not sign the 401 stuff, it is not legal.

Get a labor lawyer involved.

[livliv]

If it is called 401k, generally it will not be held by your employer. It will be invested in some kind a mutual fund or used to buy shares of the same company. You will not be able to withdraw the 401k until you are 59 1/2 unless you pay a tax penalty. You need to ask and get everything in detail.

[JoeF]

Do you know any labor lawyers that I can take services of?

Check with the State Bar in your state. They usually have a lawyer referral service.