Legal advice needed in regards to a past employer! Note: we are WI residents!?

So here's the scoop. My fiancee is a Physician's Assistant who was recently forced to resign from a healthcare corporation with no clear cause. The only thing that was clear was her end date, which was May 31st. Needless to say, this has put us through some financial strife, and so she needs to withdraw from her 401K account. However, in order to avoid the penalties, she needs to demonstrate that we are going through hardship. NOW.... she told the retirement office that she is unemployed for the time being, and this -evidently- is sufficient cause for wavering the withdrawal penalties, BUT... every time the retirement office has contacted her previous employer (which has been every day), they claim that she is still a current employee. The problem is that HR hasn't taken the 30 seconds it takes to remove her from their database. It is now June 12. which is thirteen days after her termination, and she is still listed as a current employee. In spite of continued efforts to explain to them why they need to fix this, they have lied to us and claimed that it'll be done, "within the next couple of business days," and dragged their feet on it. Now they're simply stone-walling her. PLEASE tell me that there is something illegal about this! They are interfering with our livelihood by refusing to do their jobs! Are there any court cases in WI -or, for that matter, federal cases- that have ruled against this kind of BS? We need leverage here!

Thanks in advance for your help!

-L