Zervan v. Maday Construction, Inc. Employees Profit-Sharing Plan

**Worker Wins Dispute Over Retirement Plan Benefits** Stephen Zervan sued his former employer, Maday Construction, over changes to the company's profit-sharing retirement plan. After Zervan left the company, he discovered that plan administrators had reduced the value of his retirement benefits through a plan amendment. He also claimed the company failed to properly notify employees about changes to their retirement plan as required by law. The court sided with Zervan on several key points. It ruled that the plan amendment reducing departing employees' benefit values was invalid and unenforceable. The court also found that Zervan was entitled to have his benefits calculated based on their value at the end of the previous year, not the reduced amount. Additionally, the judge determined that Maday Construction violated federal notification requirements by failing to properly inform employees about plan changes. This case matters for workers because it shows that employers cannot simply change retirement plan rules to reduce benefits after the fact. Companies must follow strict federal laws (ERISA) when modifying employee benefit plans and must properly notify workers of any changes. Workers have legal protections for their earned retirement benefits, and courts will enforce these rights when employers try to unfairly reduce what employees are owed.