Can an employer take money from your paycheck for insurance after they have already given it to you?

My employer told me that my colleagues and I all get 200 a month towards
health insurance.

I signed up but was dropped from my insurance for the past year but still getting
the 200.

Now he is saying that he wants to take 200 a month from my paycheck to repay
it and have me sign a form saying it was a loan.

I never signed anything about the stipulations of the insurance or any kind of
document at all when I started getting the money.

Can he make me sign it? Do I have to pay that money back?

Asked on April 8, 2016 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You most likely have to repay the money. If you knew it was only for insurance but you were not getting insurance, then the money was given to you in error--and you would have known it was in error (so it was not even innocent error on your part; you accepted money knowing you were not entitled to it). An error does not entitle someone to keep money under the law; the company is entitled to it back, based on what you write, and they could sue you if necessary for it.

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