Eastern District of California Blog

EDCA Court Orders Former Fresno Company To Pay $520,000 Diverted From Retirement Plan

A federal judge has ordered an out-of-business Fresno construction company and its owner to pay nearly $520,000 into its employees' retirement plan as required by contracts for government-funded projects.

The U.S. Department of Labor sued Explore General Inc. and its president, Jaime M. Gonzalez, for allegedly using money it was supposed to put into the company's 401(k) plan for general operating expenses. The retirement contributions were required when the company contracted to work on projects paid for by government agencies. More than $300,000 was allegedly diverted.

Fresno Bee, 4/4/12

EDCA Court Denies Motion To Dismiss Suit Over Sacramento County Pensions

A federal judge has refused to dismiss a lawsuit pressed by retired employees of Sacramento County over the reduced amounts paid to them by the county since 2007 to offset their health care costs.

U.S. District Judge Kimberly J. Mueller ruled that the retirees present enough of an argument to require a resolution on the merits.

Sacramento Bee, 4/4/12