Alameda Center for Rehabilitation and Healthcare Inc., a New Jersey nursing home, must compensate unionized employees for missed employer 401(k) matching contributions after its retirement plan lapsed for nearly a year, according to a decision by the National Labor Relations Board (NLRB). The ruling partially overturns an earlier administrative law judge’s finding. The union representing the workers is 1199SEIU United Healthcare Workers East, whose legal counsel in the case was Bill Massey of Gladstein Reif & Meginniss, LLP.
The Board ordered Alameda to pay approximately $30,000 to 10 affected workers, covering the matching contributions the company failed to make during the period from April 2016 to February 2017. The Board clarified that while the employer must cover the missed matches and associated investment gains, it is not obligated to pay the amounts employees themselves would have contributed through payroll deductions, as those wages were already paid out.
This case arose when Alameda acquired the Perth Amboy nursing facility and agreed to maintain existing labor terms, including a 401(k) plan with a 50% employer match up to 3% of employees’ salaries. However, the company failed to establish a replacement plan promptly, leaving staff without retirement benefits for over eight months.