Is it fraud if my employer does not submit my application for life insurance but continues to take a deduction for it out of my paycheck?
Question Details:
For 2.5 years I have been paying for life insurance policies for myself and my husband through my work but my employer never submitted our applications to the insurance company and so do not actually have the policies.
Employment and Labor Law Answers
It is fraud if the employer did this intentionally. Not only can you sue (e.g. to recover the deductions), but it is possible that someone at your employer's could face criminal liability.
It is not fraud if it was some awful, but innocently intended, oversight--but you still would be entitled to sue to recover the money. (Fraud, like other crimes, depends on having a criminal state of mind, or "mens rea," as well as committing an ostensibly criminal act.)
If you believe it was intentional, you may wish to contact the police. You also initiate a lawsuit to recover your funds.
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