Friday, 16 October, 2026

When Employee Money Isn’t the Company’s Money (Part 2)


Reading Time: 3 minutes

INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE. 

Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed David C. Japha.

The David C. Japha Commentaries

On a recent Price of Business segment, Host Kevin Price interviewed legal expert David C. Japha of Levin Jacobson Japha, P.C. (ljjlaw.com). 
A federal judge has ordered Trader Joe’s to pay approximately $1.2 million following a trial involving fees charged to its employee 401(k) plan. What can business owners learn from that decision about money they control on behalf of employees—and when can mishandling employee funds create liability beyond an ordinary business debt?
◆ Section 1 — The Trader Joe’s 401(k) Decision (3 minutes)
· What happened in the case?
· What responsibilities does a business assume when it administers an employee retirement plan?
· Why can the process used to monitor plan expenses matter even without allegations that anyone stole money?
· What should businesses periodically review concerning plan administrators, service providers and fees?
◆ Section 2 — Payroll Withholding: Whose Money Is It? (3 minutes)
· What happens when a business withholds taxes from an employee’s paycheck?
· Is that money available to meet ordinary business expenses until the taxes are due?
· What happens when a cash-strapped business pays employees, landlords, banks or vendors while withholding taxes remain unpaid?
· Does using an outside payroll company eliminate the employer’s responsibility?
◆ Section 3 — When Can the Owner Become Personally Liable? (2–3 minutes)
· Who can be considered responsible for unpaid withholding taxes?
· Is liability limited to the owner or president?
· What does “willful” failure to pay actually mean?

Over  his  more  than  three  decades  of  practice,  David  Japha  has  earned  a  reputation  for resolving difficult and complex matters, sometimes being the second or third lawyer to take on a case. David has tried many criminal and civil cases to conclusion and argued numerous appeals, post-conviction cases and cases involving mental health issues. He also  currently represents clients in federal and state administrative matters, including ongoing matters before the Consumer Products Safety Commission. David got his start in litigation before leaving the University of Denver College of Law, where he tried his first DUI case in state court through a program called the student law office.  He also negotiated settlements and argued his first administrative appeal  before the Social Security Administration in the winter of 1984, before his law school graduation in May of that year. Soon after starting out, David shared office space with his current partners, Don Jacobson and Daniel Levin at Ptarmigan Place.  There he learned law office management hanging out his shingle and doing evictions, collections and court-appointed federal criminal cases.  And, it was there, in federal court, that David truly cut his teeth in criminal defense litigation, culminating in his appointment  to  the  Criminal  Justice  Act  committee  (which  oversaw  the  appointment  of  conflict counsel in federal court) by then-Chief Judge Richard Matsch. Over 30 years of practice has given David the opportunity to be involved in some amazing cases,  including  taking  depositions  in Katmandu,  Nepal  in  a  complex  criminal  case  in  1991; representing  a  witness  in  the  trial  of  Timothy  McVeigh  (where  David  was  also  a  credentialed reporter for the Intermountain Jewish News); handling criminal matters in Nebraska, Kansas and California and appearing in Washington State.  David has been an expert witness for the Colorado Supreme Court Office of Regulation Counsel in the area of attorney fees for court appointed counsel.

Learn more at https://www.ljjlaw.com/attorney-profiles/david-japha/.

Connect with David on social media:

LinkedIn: https://www.linkedin.com/in/david-japha-23937912/

 

 

 

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