New Jersey and every other state in the union must adhere to ERISA law. ERISA is a system that seek to protect employees from private employers who offer their employees certain plans such as profit-sharing and health care plans, to name a few. Private employers must ensure that they are meeting the minimum standards placed by ERISA before offering any type of plan to their employees. Of course, such precautions are not always followed, and that is where violations come in. The following includes further information on the most common types of ERISA violations.
Exemptions to keep in mind
One of the most common misconceptions regarding ERISA is that it protects all employees from all plans. The fact is that ERISA was created to protect employees from private business owners only. In addition, any plans provided by the local or federal government or by a religious organization are not protected under ERISA.
Common ERISA violations
In order for a business to be accused of making a violation, there has to be clear evidence that it failed to live up to standards set forth by ERISA. Some of the most common violations include denying an employee their rightful benefits, breaching fiduciary duty and deliberately interfering with an employee’s rights to their plan.
Penalties a private employer may face
In the event that a private business owner is found to have violated ERISA, it may face one of two types of punishment. The first one involves the department of labor imposing severe fines on the business itself. The second involves the business not just being fined for the violation, but the owner may also face prison time if the violations are severe enough.
If you believe that your employer has violated your ERISA rights, then it is important to consult with an attorney with experience in these types of matters. Doing so may provide you with the compensation you deserve.
