More than 60,000 companies went bankrupt last year alone, and when they go under they could take more than workers' wages with them.
The United States Department of Labor says it has seen an uptick in companies mismanaging their employees' health and retirement funds.
As companies start to fail, some stop making matching contributions to their employee's health and retirement plans, others fail to forward the employee's own contribution and a few simply steal the money.
Two years ago in Crystal Lake, Ill., workers at Phezer Enterprises, a steel production company, did not anticipate coming into work one day and finding the company closed.
"I kind of panicked. What are you going to do now, you know?" said one former employee, Steven Kreft.
CLICK HERE for warning signs to help you find out if your health or retirement plan is in jeopardy.
Bounced paychecks were the first sign that the company was in trouble. Welder Jim Greinke lost his home to foreclosure when he wasn't paid.
But as bad as that sounds, it gets worse. Phezer workers paid for their own health insurance via withholding from their paychecks. For months, Phezer failed to forward over $10,000 of the money that money to the insurance company, according to investigators.
The workers said it was theft and that neither Phezer nor the insurance company let them know their health coverage had lapsed.
Instead, they found out by accident when Doug Hulsey's daughter went to the doctor and was told her insurance card was no good.
"At first I thought she had the wrong insurance card because they were still taking it out of our paychecks and everything," Hulsey said.
Cobra coverage does not apply when a company goes out of business, so now the workers were unemployed and uninsured. When Phezer employees came back to the company to get their belongings and pay as well as answers about their insurance, all the gates to the building were locked and the company was gone.
A notice from the company owner Joseph Michael Phelan instructed ex-workers to send all health claims to a box at the local post office. But when ABC News checked it out, the box number did not exist.
"They took everything from me when the company closed down," former employee John LaMayer said.
At the time, LaMayer's wife was ill and his young daughter and daughter-in-law both were pregnant.
"When this guy took all my money away and took all my insurance away ... I felt bad about it because I couldn't take care of my family the way I wanted to," LaMayer said.
The LaMayer family racked up $100,000 worth of medical bills and had to declare bankruptcy, he said.
The Department of Labor's Employee Benefit Security Administration, which investigates plundered health and retirement funds, last year recovered $1.3 billion for employees. But it's not easy. Labor Secretary Hilda Solis would like more investigators and stronger laws.
"It's horrifying because you feel like: How can this happen?" Solis said.
"The way the laws were written in the past really favors more the individual who has control over those plans as opposed to the participant who is paying in," Solis said. "So there has to be more safeguards."
In fact, the government has sued Phezer company owner Phelan to try to tap into some of his assets, like the $1 million house he lived in while he ran the company.