Can my ex-employer deduct insurance premiums from my last paycheck and wait to refund meuntil the insurer reimburses them?

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Can my ex-employer deduct insurance premiums from my last paycheck and wait to refund meuntil the insurer reimburses them?

I was covered by a group insurance plan. My ex-employer took the premiums he paid out of my last paycheck and stated that he would refund me when the insurance company refunds them. It has been almost a month. My insurance was terminated over 3 weeks ago.

Asked on September 24, 2011 under Employment Labor Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Yes, unfortunately, the employer can most likely do this. Your last paychec, is for work you did prior to your employment terminating--it's for work leading up to your last day. You were covered by insurance up until your last day, and the employer had a contractual obligation with the insurer to pay the premiums for you as long as you were still working there. Therefore, the employer can take the premiums, which it had to pay for coverage you received, out of your paycheck and remit them to the insurer. Then later, if and when it has some or all of those premiums refuned to it, the employer can then return the appropriate amount of money to you.


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