Sacramento, CA asked in Business Law, Contracts and Employment Law for California

Q: My work 401k is registered to a parent corporation and not the direct corporation I work for is that legal?

This is an SCA government contract that requires a new company to take over every 5 years. The billion dollar parent corporation makes a new smaller corporation or LLC under it and moves them around in a shell game to keep their SCA contracts. My employer after a recent contract change where we again switched companies has refused to give us a termination letter from the previous company and won't release our 401k and 401a to us they claim we are employees of the same parent corporation. If they are all the same company this is an SCA contract violation. Otherwise I believe this is a violation of feduciary responsibility to release my funds from a company I no longer work for, or a fraud that a company I never worked for has my money.

1 Lawyer Answer
Gerald Barry Dorfman
Gerald Barry Dorfman
Answered
  • Mill Valley, CA
  • Licensed in California

A: You may be able to file a Qui Tam action. Depending on the ultimate amounts recovered, some of these can be quite valuable. Look for attorneys who are familiar with the requirements for these types of cases, and have one or more consultations to learn more.

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