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Informal Inquiry Protected Under ERISA Section 510

(Cont...)

The court also cited a 9th U.S. Circuit Court of Appeals opinion that said reporting misconduct is a necessary step in the start of any formal inquiry and that if informal beginnings are not covered in this section, then employers would be inclined to dismiss employees as soon as they complained. The 7th Circuit also disagreed that the inquiry must be asked of the employee rather than the employer, finding that the statute does not specify who asks the question or initiates the inquiry.

In the summer of 2009, George discovered that money withheld from his pay was not being deposited into his retirement account and health savings account. He lodged complaints with Junior Achievement’s accountants and executives, including Jennifer Burk, its president and chief investment officer. He contacted the U.S. Department of Labor but declined to file a written complaint. In October, George addressed the company’s board. That month he received checks for around $2,600 to compensate him for the missed deposits plus interest.

George had an employment agreement until June 30, 2010, but in late 2009, he discussed with Burk and others retiring in April 2010. On January 4, 2010, Burk told George not to come to work the next day. George claims Junior Achievement terminated his employment because he questioned executives about the missing money from his accounts.

The 7th Circuit's opinion is here.

Kristen Heinzinger
editors@plansponsor.com

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