Paychex 401(k) Distribution Snafu Governed by ERISA, Judge Says

A man attempting to hold Paychex Inc. liable for a $100,000 retirement plan distribution allegedly intercepted in the mail must file claims under ERISA to keep his lawsuit alive, a federal judge ruled.

The man’s state law claims for breach of contract, negligence, and fiduciary breach are preemtped by the federal Employee Retirement Income Security Act, Chief Judge Elizabeth A. Wolford said in an order Wednesday for the US District Court for the Western District of New York. These claims are “rooted in the terms of an employee benefit plan” and thus are governed by the federal statute, according to ...