Aldi Sued by Former Employee Over 401(k) Plan Forfeiture Usage

Aldi Inc. mismanages its workers’ retirement plan by using the unvested 401(k) contributions forfeited by departing workers to offset the money it must contribute to the plan, a former employee alleged in a new lawsuit.

The grocer consistently put 401(k) forfeitures toward its required contributions instead of using this money to reduce the administrative expenses charged to employees, costing the workers millions of dollars in lost growth opportunities, the worker alleged in the complaint.

The decision to benefit the company at the expense of its workers constitutes a violation of the Employee Retirement Income Security Act, according to the ...