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Tina, Lawyer
Category: Employment Law
Satisfied Customers: 33167
Experience:  JD, BBA, recognized by ABA for excellence.
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my employer has not been paying in my ira deductions. what

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my employer has not been paying in my ira deductions. what recourse do I have

Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:

Is the employer making a good faith effort to catch up on the contributions? Do you wish to continue your employment with this employer?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 4 years ago.

Yes, they have paid in about half of what is owed

I see. Thank you for clarifying that, John.

If the employer is continuing to catch up, I would typically allow them additional time to do so if you wish to maintain a good working relationship with them. You could pursue a breach of contract claim against them or retain an attorney to demand they catch up on the contributions immediately or legal action will be taken. However, that would likely damage your relationship with the employer and as long as they are acting in good faith to come current with the contributions, I would normally permit them to do so rather than pursuing legal action against them.

In addition to pursuing a breach of contract claim against them, you could also assert a wage claim since part of your agreed compensation is not being timely paid. It is up to you though, knowing the employer as you do, whether to pursue legal action now or wait a while longer to provide them with the opportunity to come current.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need so I will be compensated for my time from the deposit you posted with this website. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!


Customer: replied 4 years ago.

What about the money I would have made on my stocks during the time they didn't pay in. Is there any compensation for that

Hello again, John.

Once the employer has caught up on the contributions, at that point I would typically approach them about those damages. If you can show how much injury you suffered as a result of the late contributions, you would normally have a basis to seek compensation from the employer for your damages, but I would wait until you can ascertain the amount of those damages.

Customer: replied 4 years ago.

They told me they would pay 20% for all late payments. Does that sound like a fair compensation

Hello again, John.

Yes, that does sound like a fair settlement of your claim under most circumstances unless you would have had a very significant return on your investment, which is not likely in the short-term.

Tina and 10 other Employment Law Specialists are ready to help you
Customer: replied 4 years ago.

They actually didn't pay in 2011 and 2012 payments. They are current on 2013

Hello again, John.

That is more serious. If they have not made the contributions for prior years, you might want to consider retaining an attorney. The employer could be in trouble with the IRS and affected employees could take legal action against them. State law would typically protect the employees from retaliation for asserting their right to the compensation promised.
Customer: replied 4 years ago.

If they are paying up to current is it worth it. They have paid in all of 2011 and they said they will pay in 2012 this month. They are good people, I am just frustrated

I can certainly understand your frustration. No, if they are going to bring the accounts current within a month or so and pay a 20% penalty, it is probably not worth pursuing legal action at this point. The time for doing that probably would have passed if they actually do bring the accounts current as intended.
Customer: replied 4 years ago.

Thank you for your help. If this doesn't happen as they say can I contact you again. If so how?

Hello again, John.

You can save the link to this question thread if you need to follow-up with me. Or, if you need to post a new question, you can type it in the question box from my profile page. Here is a link to that page:

You are very welcome and good luck with this. I hope they do pay now as promised.