401K contributions not being deposited

[paula2jen]

What is the name of your state? Texas
My employer has been holding back my 401K contributions and only depositing them once per quarter. Is this legal? I am concerned because I know the company is having financial difficulties. I teach at a for-profit career school and enrollment is low. As a matter of fact, one of my paychecks bounced in April. I am a salaried exempt employee, but due to low enrollment, my hours and salary will be cut in another month. I am sure that I know the answer to this, but anyone have any advice?

 

[cbg]

No, it is not legal to only deposit 401k contributions once a quarter. It's been nearly three years since I was responsible for 401k administration but the last time I looked, YOUR contributions had be contributed as soon as possible with two weeks later being the outside limit. I believe that employer contributions can be contributed only as the plan document regulates.

You can file a complaint with the Federal DOL, as the regulatory agency governing 401k plans.

However, even as an exempt employee, it is legal to cut your salary (hours are irrelevant to an exempt - see my response to your other post) as long as you receive a minimum of $455 per week (any less and you're automatically non-exempt by definition) and you receive whatever notice of the cut your state requires. To the best of my knowledge no state requires over a month, and most states do not require any prior notice at all - a sign posted over the time clock or in the employee lounge to the effect that "effective today all salaries are cut by 10%" or whatever is sufficient. Since you already know about a cut that will not take place till next month, it is overwhelmingly likely that your employer is legal in that regard.