Home Depot Sued Over Forfeitures in Employee Retirement Plan

Home Depot Inc. was hit with a proposed class action challenging how it handles 401(k) contributions forfeited by employees who leave the company after a short period.

The retailer mismanages its 401(k) plan by using forfeitures to reduce the contributions it would otherwise have to make to the plan, instead of putting that money toward the administrative fees paid by workers, according to a complaint docketed Tuesday in the US District Court for the Northern District of Georgia. Home Depot “consistently and reflexively” declined to use this money to lower workers’ administrative fees, it said.

This practice saved Home Depot ...