Company no longer matchs 401k

[Donfuji]

Hey,

I just got an email from the CEO (it was the whole company not just me) saying that they will be deferring the 401k matching (see below):

First, we must manage our cash so that it works for us and we don't run out. We must manage our costs and our expenditures. You will see the effects of this almost immediately. For example, one very visible action is that we are deferring the matching 401k payments. These payments will not be paid on a monthly basis but will be
accrued and paid at a later date. For now, this is something we can do near-term to hold on to cash. We will also be making some tough decisions on expenses and capital expenditures. All of us must contribute to saving cash whenever possible.

Can they do this? Don't they have some sort of commitment to me as an employee? Please help me, as I would like to retire with some money too..

-Don

 

[ALawyer]

You and your buddies may well be an ex-employee soon.

As companies start to experience financial reverses they start to cut expenses, including new hiring, frills, most advertising, travel, consulting, fringes and jobs, etc.

The 401k match is an expensive fringe that it is not required to provide (unless under union contract) and has now deferred matches. That's the facts