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Case ID: 2634 | Employment | 09/08/2004
Two related class actions have been filed against the United States of America on behalf of retired Michigan public education employees who had Social Security taxes withheld from early retirement incentive plan payments in violation of federal tax regulations. The actions seek compensatory damages equal to the amount of the taxes.
As part of their early retirement arrangement with their respective school district, college, and university employers, the employees alleged that they each received money in exchange for surrendering their property rights of tenure and the contractual rights to just cause employment. The individual employees filed administrative claims for refunds of the Federal Insurance Contributions Act (FICA) tax withheld on the payments they received in exchange for their property rights. The Internal Revenue Service allegedly denied the claims. On June 18, 2003, both courts certified the class composed of all retired public school, college, community college, and university employees residing in Michigan who: (1) had Federal Insurance Contributions Act taxes withheld on payments received in exchange for their property rights of tenure, or just-cause contract rights in connection with early retirement programs; (2) filed claims for refunds with the Internal Revenue Service; and (3) had their claims denied on or after November 21, 2000. One of the classes covers persons in the eastern half of the state, while the other action covers persons in the western portion of the state. Though the proposed class members participated in different retirement plans, each group's claims share the common element of receiving a payment in exchange for the property right of tenure or a just-cause contract right. A trial in the matter has been scheduled on September 14, 2004. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Employment Cases of Interest California law prohibits employers from taking back sales commissions in many situations. The class has been certified in a California class action filed against web hosting company Verio, Inc., on behalf of commissioned inside telephone salespeople who allege that the company compels them to return commissions on failed accounts in violation of California unfair business practices and labor laws.
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