california News In Brief

Employer restores pension benefits after investigation. A U.S. Department of Labor (DOL) investigation of a California trucking company has resulted in the restoration of $1,979,779 in 401(k) pension benefits to 515 drivers working on U.S. Postal Service contracts. Lange Trucking Inc. as well as its president and other officers have been debarred from eligibility for further service contracts with any U.S. government agency for three years because of a failure to pay drivers required fringe benefits. The DOL's San Francisco Wage and Hour Division district office found that the company failed to fully fund the drivers' 401(k) plan, resulting in violations of the McNamara-O'Hara Service Contract Act. Lange Trucking paid $500,000 of the unpaid benefits. Hoovestol Inc., based in Eagan, Minnesota, acquired the company after the violations and voluntarily agreed to fund the remaining $1.48 million in benefits. Read More...