WA Employment Laws?

[Stomper]

Then it looks like the first FINANCIALLY SECURE step would be to start putting in applications at other places of employment. Once another job is secured give notice and see if if AT LEAST the 401K withholdings from her paycheck are paid back on the last check. If not, pull the rip-cord with the AG's office.

Dang hommie, I feel for you & your wife!! Hang in there and try to strategize short AND long term before making your next move with this. I know I'm just a stranger on the internet, but hearing about this kind of crap happening to good working folks who want to believe the best of people SERIOUSLY chaps my arse raw!

 

[CountryGent]

The business owner said they'd "make it right" on the 401K's.... does that include the dividends you may have earned during the time it was SUPPOSSED to be in your account?!

Exactly. And even if they could do so, there is zero excuse to rip off part of someone's salary.

no department seemed very concerned that 401k theft was a big deal.

What the hell.

 

[Camelfilter]

...What the hell.

Our gubmint at work...

...this situation sucks, sorry to hear it OP!

I've no experience of a similar situation, so don't have any reliable advice to give.

I like the suggestions of finding some type of employ (anything) prior to taking action though, and to do it quickly like ASAP.

 

[PiratePast40]

Stop the 401k deductions from your paycheck immediately. No sense throwing away good money. As others have suggested, company contributions are usually considered a benefit and can usually be discontinued if the company isn't turning a profit.

Not sure what good it would do to contact the IRS unless they aren't taking out your share of the taxes. Remember, you're in a position of collecting money due to you. Burning down the house (figuratively) probably isn't in your best interest if you want them to have some sort of assets that can be returned to you. The IRS would be the last people I would want to contact if I wanted money from the company.

 

[wired]

If your wife quits she will be denied unemployment. They may allow it for a while until they make a ruling and then she will have to pay it back. Unless there is some harassment issue then she is left swinging. Washington is pretty consistent about denying claims when an employee voluntarily leaves. There is no reason to really other than her pride being hurt. Tell the employer to reimburse the 401K or you will sue them and then sue them if they do not. The money is gone. Worst thing they can do it fire her and then she will be a 100% shoe in for unemployment and then you sue them anyway. You might not get anything if they are really that bad off but you can chalk this one up to experience.

 

[PiratePast40]

If the company is really on the way out, most people will be laid off soon anyway. if a paycheck bounces and they don't immediately make it good, I'd certainly be telling the unemployment office about that. Do you know if they are paying their unemployment insurance payments?

 

[Brutus57]

File a lien, if they get POed they fire her. Then you get unemployment because she was fired as retribution. It is my experience most people fired (even if they were total tools which is why I fired them) GET UE. You need to get the legal system to work for your wife and you. They are breaking the law and the sooner you memorialize that in a lien, the sooner you can get a better hedge if they go under.

She might even be covered by the new whistle blower laws. No attorney will tell you any suit is a lock, and definitely look for an attorney knowledgeable in employment law. Draft a letter to hand to them after the lien has been made ready to file but not filed. In that letter your wife should tell them how much they owe her in the 401K, etc. and that they have 30 days to pay her. They can her right then and there, file the lien immediately, and start the whistleblower protection (is she the only one getting screwed in the company?). Now you have more documentation and show the judge that you asked nicely to be paid for serviced/employment rendered. In fact have all her pay stubs and a copy of the original 401K agreement ready at hand. You've heard the old adage "ducks in a row."
Of course discuss all this with your attorney.

Brutus Out

 

[mjbskwim]

We do need her income so its not something she can just walk away from and she takes time off to find a new job either.

Well she has an income as little my as the checks are good,right? I would be gone as soon as the first check bounces. And maybe find something that is worth twice what my check was so I can sell it easy for what I'm owed.
I worked for a company like this. I cashed my checks at the casino cause I knew they might be bad. And some guys got screwed.
I'd bail soon. They must need her or her checks would bounce too.

 

[mjbskwim]

File a lien, if they get POed they fire her. Then you get unemployment because she was fired as retribution. It is my experience most people fired (even if they were total tools which is why I fired them) GET UE. You need to get the legal system to work for your wife and you. They are breaking the law and the sooner you memorialize that in a lien, the sooner you can get a better hedge if they go under.

She might even be covered by the new whistle blower laws. No attorney will tell you any suit is a lock, and definitely look for an attorney knowledgeable in employment law. Draft a letter to hand to them after the lien has been made ready to file but not filed. In that letter your wife should tell them how much they owe her in the 401K, etc. and that they have 30 days to pay her. They can her right then and there, file the lien immediately, and start the whistleblower protection (is she the only one getting screwed in the company?). Now you have more documentation and show the judge that you asked nicely to be paid for serviced/employment rendered. In fact have all her pay stubs and a copy of the original 401K agreement ready at hand. You've heard the old adage "ducks in a row."
Of course discuss all this with your attorney.

Brutus Out

If they are going under they will file for bankruptcy and probably put everyone on the payroll up top.....if it's possible to do so.
It will cost you money to get any 401k money's back. It will cause mucho stress too. Will it be worth it? Or just move on? Could take years to win.

 

[NCW_Robert]

With it having gone this far and with other employees checks bouncing, this business is about to fail, doing things to hasten it's closing [turning them in to gov] is not going to help you or any other employees as it will probably just result in the business closing NOW rather then later.

Your wife is not under any obligation to tell any other employees anything, just kick the looking for other employment into overdrive, serious over drive. All you can do at this point. As for the 401K contributions the owner stole, that is probably going to be a write off.

The following suggestion is important: I would quickly transfer any 401K funds in that account into a self directed Roth IRA, if it is left in that account, it may be claimed to settle business debt or the owner, if he does have access, could withdraw it all and fly to Bermuda in the middle of the night.

Not sure if that is possible just saying. If a corporate raider can buy a company, steal the retirement account money then close the business and sell off its assets, could be possible for this business owner to raid his employee's retirement account. This may no longer be possible due to current laws but I would not take chances and I would get that 401k money out of that business's retirement account ASAP.

in the late 1070s - 1980s I worked for a company called Interlake INC, for 12 yrs. I had retirement account there. The company closed and I lost it all. Don't know if I could have moved it away from them and kept it, too late now as that all took place in the 1990s.

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