U.S. Department of Labor sues former employee leasing company in Brentwood, Tennessee, to protect workers’ 401(k) plan assets

Archived News Release — Caution: Information may be out of date.

Atlanta – The U.S. Department of Labor has sued Midland Employer Services of Brentwood, Tennessee, for failing to fulfill its fiduciary duties to the company’s 401(k) plan in violation of the Employee Retirement Income Security Act (ERISA).

The lawsuit, filed in the U.S. District Court for the Middle District of Tennessee, alleges that the company abandoned the plan without terminating the 401(k) and distributing its assets to eligible participants after the company ceased operations in 2002.

As a result, participants have been unable to receive information about and access to their 401(k) accounts.

The suit asks the court to appoint an independent fiduciary to manage and distribute an estimated $190,134 to 25 participants of the Midland Employer Services Benefit Plan.

“When companies abandon their commitment to their employees, the Labor Department will act decisively on behalf of workers to protect their pension rights,” said R.C. Marshall, regional director of the department’s Employee Benefits Security Administration (EBSA) office in Atlanta.

Midland Employer Services provided employee leasing services to employers.

This case resulted from an investigation conducted by EBSA’s office in Atlanta. Employers and workers can reach EBSA’s Atlanta Regional Office at 404.302.3900 or toll-free at 866.444.3272 for help with problems relating to private sector retirement and health plans.

In fiscal year 2007, EBSA achieved monetary results of $1.5 billion related to pension, 401(k), health and other benefits for millions of American workers and their families.

Chao v. Midland Employer Services
Civil Action File Number 3:08-cv-01207

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Archived News Release — Caution: Information may be out of date.