12/11/2012 // West Palm Beach, Florida, US // JusticeNewsFlash // Justice News Flash // (press release)
Irving, Texas – The company says wages earmarked for employee pensions were used for company operations as it was headed toward bankruptcy. As reported by The Wall Street Journal, the number of workers affected by the company’s actions is not clear; however, pension contributions were not restored after the company announced it would no longer be making them last year.
Experts suggest that despite the losses, the company failing to put the money in the pensions is likely not in violation of federal law.
James P. Baker, a partner at Baker & McKenzie LLP, who is not connected to the Hostess case, is quoted in the report as stating of the matter, “It’s what lawyers call betrayal without remedy…It’s sad, but that stuff does happen, unfortunately.”
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