Aurora trucking firm sued for bilking employees on benefits — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Aurora trucking firm sued for bilking employees on benefits

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in Human Resources

The U.S. Department of Labor has sued Mid-State Express, alleging that the trucking company collected health care premiums from its employees, but never actually used them to buy insurance.

As a result, employees face more than $3 million in unpaid medical bills. During the period in question, the company collected $1.26 million in health premiums.

The DOL is also looking into how the company handled its employees’ 401(k) plan. The department says the company’s owners stole $1.5 million in employee contributions that were never deposited into the plan.

The company has filed for bankruptcy.
 

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