Dept. of Labor may help workers fight failed firm
In a story reminiscent of the Enron scandal, auto parts manufacturer DCT Inc. went bankrupt on February 7, bouncing 400 employees' paychecks, leaving them with no health insurance, $700,000 in unpaid medical bills to be accounted for, and unable to access their 401k pension plans. The U.S. Department of Labor recently contacted the lawyers working for the trustee appointed by the bankruptcy courts to find out if DCT misused employees' health insurance payments to pay off other debts. A former manager who had access to DCT's financial information has, on condition of anonymity, confirmed that the company did indeed illegally divert insurance premium payments from employees' paychecks for other purposes---causing doctors and hospitals to come after laid off workers for large medical bills.