Ohio Engineering Firm Faces Penalties for 401(k) Plan Violation

A federal court has mandated that a civil engineering firm based in Cincinnati, Ohio, along with its owner, pay a total of $45,699.63 to employee accounts within the company’s 401(k) plan. This ruling comes after the U.S. Department of Labor discovered that the firm had violated federal employee benefits law.

The U.S. District Court for the Southern District of Ohio, Western Division, issued a consent order and judgment in response to a complaint filed by the Department of Labor. The complaint detailed that from February 10, 2017, to August 19, 2022, Infrastructure & Development Engineering Inc. and its owner, James Hahn, failed to remit employees’ retirement contributions to the company’s 401(k) plan. Additionally, they did not manage the plan prudently, which is a violation of the Employee Retirement Income Security Act (ERISA).

As part of the court’s order, Hahn and the company are required to pay $45,699.63 to the accounts of both current and former employees affected by these violations.

“This employer violated federal law by withholding employee 401(k) plan contributions and failing to deposit them into the company’s retirement plan,” stated Joe Rivers, Regional Director of the Employee Benefits Security Administration in Cincinnati. “The Department of Labor will enforce the law, hold employers accountable, and ensure that employees receive their hard-earned retirement benefits.”

In addition to restoring the retirement assets, Hahn is obligated to take measures to terminate the Infrastructure & Development Engineering Inc. 401(k) Plan and will be removed as a fiduciary to the plan. Furthermore, Hahn and the company have been assessed a civil penalty of $9,139.93 for breaches of fiduciary duty.

Source: Department of Justice

Topics
Ohio

A federal court has mandated that a civil engineering firm based in Cincinnati, Ohio, along with its owner, pay a total of $45,699.63 to employee accounts within the company’s 401(k) plan. This ruling comes after the U.S. Department of Labor discovered that the firm had violated federal employee benefits law.

The U.S. District Court for the Southern District of Ohio, Western Division, issued a consent order and judgment in response to a complaint filed by the Department of Labor. The complaint detailed that from February 10, 2017, to August 19, 2022, Infrastructure & Development Engineering Inc. and its owner, James Hahn, failed to remit employees’ retirement contributions to the company’s 401(k) plan. Additionally, they did not manage the plan prudently, which is a violation of the Employee Retirement Income Security Act (ERISA).

As part of the court’s order, Hahn and the company are required to pay $45,699.63 to the accounts of both current and former employees affected by these violations.

“This employer violated federal law by withholding employee 401(k) plan contributions and failing to deposit them into the company’s retirement plan,” stated Joe Rivers, Regional Director of the Employee Benefits Security Administration in Cincinnati. “The Department of Labor will enforce the law, hold employers accountable, and ensure that employees receive their hard-earned retirement benefits.”

In addition to restoring the retirement assets, Hahn is obligated to take measures to terminate the Infrastructure & Development Engineering Inc. 401(k) Plan and will be removed as a fiduciary to the plan. Furthermore, Hahn and the company have been assessed a civil penalty of $9,139.93 for breaches of fiduciary duty.

Source: Department of Justice

Topics
Ohio