Human resources company Justworks Employment Group LLC must defend allegations that it engaged in self-dealing in its employees’ 401(k) plan, but it secured dismissal of claims challenging the plan’s administrative fee levels.
The complaint plausibly alleges that Justworks authorized its 401(k) plan to pay nearly $1 million to itself or an affiliate in 2024 for unexplained reasons, Judge Jeremy C. Daniel said.
These allegations are enough to move forward with claims of fiduciary disloyalty and prohibited transactions under the Employee Retirement Income Security Act, Daniels said in an opinion issued Monday in the US District Court for the Northern District …