[benefits] blog logo

Federal District Court Permits Employer’s “Mistake of Fact” Rescission Based on Employer Presumption

The United States District Court for the Eastern District of California reviewed a 401(k) plan administrator’s decision allowing the employer to rescind its employer contributions on behalf of an employee under the “mistake of fact ” doctrine. The “mistake of fact ” was that the employee committed misconduct on the job which would have resulted in termination (and no contribution) had the employer known about the misconduct sooner. The federal district court allowed the plan administrator’s decision to stand because its interpretation was not unreasonable, and therefore not an abuse of discretion. Anderson v. Strauss Neibauer & Anderson APC Profit Sharing 401(k) Plan, No. 1:09-cv-01446 OWW JLT, Slip op. (E.D. Cal. Dec. 6, 2010).

The lawyers of our Employee Benefits and Executive Compensation Practice Group are readily able to assist companies on a nationwide basis with implementing sophisticated benefit plans and providing answers to their most challenging compensation issues. Additionally, our lawyers are well aware of the daily employee benefits challenges facing companies of all sizes and are capable of helping in-house lawyers and human resources personnel with the day-to-day advice and guidance necessary to properly administer employee benefits plans.

Related Topics:
January 2011
S M T W T F S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

Archives