Payroll Company Loses Labor Department Suit Over Retirement Plan

The US Labor Department won a default judgment in its lawsuit accusing a Maryland payroll processing company of mishandling its workers’ retirement plan, but the department must provide more documentation before the court will award damages.

The DOL sufficiently demonstrated that iProcess Online Inc.—which didn’t formally respond to the lawsuit—breached its fiduciary duties of prudence and loyalty and violated an Employee Retirement Income Security Act rule mandating that plan assets be used exclusively to provide benefits to participants, Judge Brendan A. Hurson said. The record shows that iProcess failed to promptly forward contributions to the plan and instead kept that ...