In some states this move will tie employers' hands in timing of layoffs due to the potential cost of defending lawsuits regardless of whether they have merit. My company pays out 401(k) contributions annually (it is fully discretionary) and pays out management bonuses 2 months later. All major layoffs take place annually within a few months after the 401(k) contribution and after which the bonus accrues to the employee if the separation is not voluntary. This isn't a case of my employer being nice, it is a calculated decision based on costs and benefits.
I don't mind the annual contribution for employer matching. It is a is a very small part of my retirement plan, but regardless if I don't like any part of my compensation I am free to seek employment elsewhere.
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