Cintas Denied Arbitration of 401(k) Fee Suit in Sixth Circuit

Cintas Corp. employees who say their 401(k) plan fees are too high can litigate their ERISA claims in federal court despite the uniform maker’s attempt to enforce an arbitration clause in their employment contracts, the Sixth Circuit ruled Wednesday.

The employees agreed to arbitrate certain claims in their employment agreements, but the claim raised in this lawsuit “is brought through an unusual procedure on behalf of an abstract entity,” the U.S. Court of Appeals for the Sixth Circuit said. Claims for fiduciary breach under the Employee Retirement Income Security Act belong to the benefit plan that’s allegedly being mismanaged, and ...