Can an employer take more money outa paycheck for health insurance than what the insurer states should be withheld?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can an employer take more money outa paycheck for health insurance than what the insurer states should be withheld?

I just found out that the owner of the company has been taking more money out of everyone’s paychecks for the past 13 months than what the insurance company has stated should be coming out of the checks. And the owner continues to do so. I confronted him but he is not returning the money to anyone. What should I do? I doubt this is legal to steal from employees.

Asked on November 3, 2010 under Employment Labor Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The employer cannot take any amounts out of employee paychecks that have not been authorized. If the employer is  authorized to take out the employee portion of health insurance premiums, he may only take out that amount. If he takes out more, it is, best case, negligence--i.e. carelessly or incorrectly taking out too much--and he's liable for that amount; it could easily be criminal. (Note that if there were some other benefit that he is taking out for, it *may* be legal--e.g. for a 401(k) or an employee contribution to a pension; for a separate dental plan; possible for group life insurance--but in ALL such cases it should be simple for him to confirm what and how much he's taking out for, and whether the employee is aware of and has consented to the deduction.)

If the owner won't explain what he's doing, you may wish to assume the worst. If it  is criminal, the longer you wait, the worse  the chance of recovering the money. You should consult with an employment attorney immediately. You and your colleagues may consider jointly retaining one to split or share costs.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption