Archived News Release Caution: Information may be out of date.
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Release Date: 10/19/2004
Release Number: 04-2161-CHI
Contact Name: Bradley Mitchell
Phone Number: 312.353.6976
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Detroit, Michigan - The U.S. Department of Labor
has sued the owner of defunct American Tool & Mold Inc. of St. Joseph,
Michigan, to recover employee contributions that he failed to forward to
the company’s health plan. |
American
Tool & Mold was owned by defendant Jeffrey M. Grenke until the firm
ceased operating on September 30, 2002. Grenke filed for Chapter 7
personal bankruptcy on January 31, 2003. The health plan allowed employees
to contribute premium withheld from their paychecks and for employer
contributions. However, the health plan was terminated effective May 31,
2002, by the plan provider for non-payment of premiums. Despite that fact,
American Tool & Mold continued to withhold premiums from employee
payroll checks through June 2002, and did not advise employees of the
health insurance termination until July 3, 2002. |
The
department is seeking a court order to require Grenke to restore to the
health plan any losses resulting from their failure to forward premiums to
the health plan provider. The suit also seeks to permanently bar him from
service as a fiduciary or service provider to an Employee Retirement
Income Security Act (ERISA) covered employee benefit plan. |
“Trustees
of an employee health plan have a responsibility to ensure that workers
receive the health coverage for which they are paying. One of the most
important responsibilities is putting money from workers’ wages into
their health premiums on time,” said Joseph Menez, director of the
Cincinnati regional office of the Employee Benefits Security
Administration (EBSA) that investigated the case. |
Employers
and workers can contact the regional office at 859.578.4680 or EBSA’s
toll free number, 1.866.444.3272, for help with problems relating to
private-sector pension and health plans. |
(Chao v Grenke)
Civil Action No. 1:04CV0663 |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |
Archived News Release Caution: Information may be out of date.
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