O’Reilly Automotive Sued Over Handling of 401(k) Forfeitures

O’Reilly Automotive Inc. was hit with a proposed class action challenging its alleged practice of using the 401(k) money forfeited by departing workers to make its mandatory plan contributions.

O’Reilly used more than $24 million worth of 401(k) forfeitures to make its contributions to the plan instead of using this money to lower workers’ administrative expenses, a former employee alleged. The company violated the Employee Retirement Income Security Act by “reflexively and exclusively” using this money for its own benefit, plaintiff Tracie Patton said in a complaint filed Thursday in the US District Court for the Western District of Missouri. ...