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Demotion without cause/401K fraud

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My husband was hired as a general manager,actually third highest position, for a new company about 4 years ago. After putting in many physical hours, as well as inovative ideas, into his position, he was called into the boss' office and told that he was being demoted to another slot in the company with a substantial decrease in pay. The company has a 401K plan where the company takes out a certain percentage of his pay every week. When asked about this, he was informed that even though the money had been deducted from his pay, the company was behind in putting this money into this plan. Is this legal - both being demoted without cause and having this money taken out of his check and not being put into the plan. Does my husband have any recourse?
 



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