Bloomberg Law
Jan. 28, 2021, 4:08 PM

Cintas 401(k) Mismanagement Suit Stays in Court, Not Arbitration

Jacklyn Wille
Jacklyn Wille
Legal Reporter

Cintas Corp. lost its bid to move a proposed class action over its 401(k) plan fees into arbitration, after an Ohio federal judge said the arbitration clause in workers’ employment agreements doesn’t prohibit ERISA claims asserted on behalf of the plan itself.

Claims of planwide 401(k) plan mismanagement under the Employee Retirement Income Security Act are brought on behalf of the entire plan, and not an individual employee, Judge Timothy S. Black of the U.S. District Court for the Southern District of Ohio held Wednesday. The arbitration agreement in Raymond Hawkins’ employment contract doesn’t bind the 401(k) plan and thus ...