W.W. Grainger Is Latest Employer Sued for 401(k) Forfeitures (1)

W.W. Grainger Inc. was hit with a proposed class action by three former employees who say the industrial supplier mismanages their 401(k) plan by using forfeited plan money for its own benefit.

The lawsuit, filed Monday in the US District Court for the Northern District of Illinois, challenges how Grainger uses the money in its $3.5 billion 401(k) plan that’s forfeited when workers leave their jobs before their right to those corporate contributions have vested. According to the employees, Grainger put this money toward the contributions it’s required to make to the plan instead of using it to reduce ...