State Law Claims Not Preempted by ERISA

A U.S. district court in Missouri ruled that an employment-related complaints that revolved around alleged promises made by Amsted Industries in conjunction with its ESOP were not preempted by ERISA and could be pursued under state law (Thrailkill v. Amsted Industries, Inc., May 31, 2000). The plaintiffs alleged that Amsted had offered them lower wages but a 25% of pay annual ESOP contribution to come to work there. Their division was sold before the employees were fully vested in the ESOP, however, and those accepting employment with the new employer lost their unvested benefits. The plaintiffs were not seeking a restitution of these benefits, but were suing the company for misrepresentation and fraud. The district court did not rule on the complaint, but ruled only that ERISA does not preempt state law on this matter.