What can I do if I’ve been paying for health insurance through my employer but just found out that it has not paid the bill but is still taking money or of my check every week?

Asked on March 13, 2015 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

First, let your employer know what is happening (if they don't already) and ask them to fix it--it could be an innocent mistake. Or it could be a wrongful act by a junior or mid-level person (like an HR person) who know will not correct it for one reason or another: if you don't get a suitable answer, try going to someone higher in the company.

If the situation is not fixed to your satisfaction, you have several overlapping options:

1) Sue to recover the money taken out but not applied to your insurance;

2) Sue to force the company to cover any medical bills incured while you should have had insurance;

3) Sue to force them to provide insurance in the future;

4) Report this to the police, if it looks like someone is actually stealing the money (as opposed to just making some serious, but honest, mistake in processing).

If things are quickly resolved by the company satisfactorilly, you should speak with an attorney about your option.

Also, consider whether this is part of a broader pattern of your company having financial problems or engaging in financial wrongdoing--are they taking employee money and not actually buying health insurance because they can't afford insurance? Or because someone at the top is generally taking money out of the company for his/her own benefit? If there is evidence that this isn't just a problem with your insurance but reflects broader or deeper issues, you may wish to start looking for another job, too.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.