Verizon Wireless Delayed 401k payments during off cycle paychecks.
This mostly happened during off cycle commission checks.
It’s a small amount to the person getting it but adds up to a lot when combined with everyone’s payout.
The scheme falls under the ability to fund a 401k within 15 days.
The rule is usually reserved for small companies but was used b Verizon.
A payout is supposed to be made as soon as administratively possible.
It’s called 401k float under some lawsuits. Some call it self dealing.
It’s already cost some companies millions to settle.
Typically a company that has done this has faced a class action lawsuit.