Location: California
I work for a small tech company that has seemingly had major solvency issues. Just found out they’re being sued by a former employer for failure to pay their last paycheck + PTO, so it got me digging into other potential misconduct.
I looked at my 401k and noticed ALL of my employee contributions from this year are completely missing. I’m also missing contributions from 9 paychecks in 2024, when there should have been 16 total given the date of enrollment.
When I first joined the company, our payroll was ran through gusto. That shifted to being paid directly through mercury around mid last year, and as a result we stopped getting paystubs (first red flag). When tax season rolled around, I received a W2 from gusto that only had the wages that were paid through the platform (around half of my salary). I contacted HR and they said they would send me a corrected w2. They did, I skimmed over it, it looked right, and I sent it on its way.
Here’s the kicker, after noticing contributions missing from my 401k, I looked at the W2 I submitted and it listed the amount for ALL of the contributions that should have been made in 2024. How they got that amount if they “switched” payroll providers is up in the air, but it seems pretty suspect at least the way I see it.
We’ve also have had numerous paychecks been delayed with no late fees given. I ran some numbers on potential damages, and it’s around ~$40k including:
– late fees on delayed paychecks
– PTO failing to be paid out when I inevitably leave
– missing 401k contributions + gains despite being withheld from pay
– health insurance being cancelled for non payment despite being withheld from pay
I’m highly considering contacting a lawyer Monday, but am a little concerned that it will be fruitless considering it’s likely there is no money left.
The company is pretty much entirely run by two people. The CEO and their close associate acting as HR who both have direct control over the companies finances. They’ve also reincorporated in the past to dodge litigation. Is there any world where a lawsuit could result in these two being personally liable if the company were to go bankrupt / they try to roll up what little assets they have left into a new LLC?
I already plan to give my notice next week and send a demand letter about the missing funds + late fees. Any other advice would be greatly appreciated, heads kinda been spinning on this for a bit.