Clorox is Latest Employer Sued Over Use of 401(k) Forfeitures

A former Clorox Co. employee filed a proposed class action challenging how the cleaning product company handles the 401(k) plan money forfeited by workers who leave their jobs after short periods.

Instead of using the money to benefit workers by lowering the plan’s administrative expenses, Clorox instead used it to reduce the amount of money it would otherwise have to contribute to the plan, plaintiff James McManus said in a complaint filed Wednesday in the US District Court for the Northern District of California.

According to McManus, who brings claims on behalf of a proposed class of 9,000 plan participants, ...