Weekend DOL Blotter - 10/12/2008

Staffing company in trouble in North Carolina: "U.S. Labor Department sues defunct Charlotte, North Carolina employee staffing company to protect participants of 401(k) plan"

Atlanta – The U.S. Department of Labor has sued People Unlimited Consulting Inc. and two executives of the Charlotte, North Carolina, employee staffing company for violating the Employee Retirement Income Security Act (ERISA) when they failed to distribute $115,589 in 401(k) assets to eligible plan participants.

The lawsuit against defunct People Unlimited was filed in the U.S. District Court for the Western District of North Carolina. As a result of the violation, plan participants were unable to gain access to their 401(k) funds and were harmed when the company abandoned the plan.

“These workers and their families are counting on their 401(k) plan to help fund their retirement. Our legal action will ensure that these employees regain control over their funds,” said Bradford P. Campbell, assistant secretary for the department’s Employee Benefits Security Administration (EBSA).

In addition to the company, the suit seeks to remove Janice Love, the company’s owner, and Linda Marler, a senior administrator, as plan fiduciaries. The suit asks the court to bar the defendants from serving as fiduciaries of any ERISA-covered plan and to appoint a successor fiduciary to terminate the plan and distribute the proceeds to five plan participants.
People Unlimited Consulting Inc. was an employee staffing firm specializing in the health care industry.

This case was investigated by EBSA’s Atlanta Regional Office. Employers and workers can reach the 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. People Unlimited Consulting Inc.Civil Action File Number: 3.08-cv-0043-MR