Did Borders Neglect to Pay The 401k for its Employees?

Do you remember last month when eBookNewser reported on Borders bouncing paychecks? It looks like that wasn’t the only check Borders neglected to pay.

There’s a new discussion on the LiveJournal community IWorkAtBorders, and it was started by one user who reports that Borders isn’t paying his 401k account. Specifically, his most recent statement from Merrill Lynch shows that Merrill Lynch had to remove the payment for February. Apparently whatever electronic transfer Borders tried to send must have been declined by Borders’ bank.

And the odd part is that the waylaid funds were from the employee’s paycheck, not from Borders. If this report is true then Borders in effect robbed this employee.

Given that Borders messed up paychecks and a 401k payment, what do think are the odds that Borders also neglected to pass along the taxes and insurance deducted from employees’ paychecks? I think there’s a pretty good chance, myself.

Publish date: April 5, 2011 https://dev.adweek.com/digital/did-borders-neglect-to-pay-the-401k-for-its-employees/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT