Do I have a case if my employer is deducting money from my paycheck for my 401k and HSA flex spending account but the money isn’t being deposited?

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Do I have a case if my employer is deducting money from my paycheck for my 401k and HSA flex spending account but the money isn’t being deposited?

HSA is my health insurance flex spending account that is non taxed money used for medical expenses. They are depositing the money sporadically but are taking the money from me every two weeks. There is also interest I’m getting cheated out of as well as maintenance fees that depend on my balance.

Asked on December 7, 2011 under Employment Labor Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The money deducted for your 401k and the HSA flex spending account is *your* money, not the employer's--they are acting in a fiduciary capacity to administrate it, but have no claim to the money. Therefore, if it is being misapplied or misappropriated in any way, you would have a cause of action against them. If they are acting carelessly, your claim is based in negligence; if they are acting deliberately, they are committig an intentional wrong. In either event, you could sue them to get the money to which you are entitled; to recover any other losses or cost you incur; and/or for a court order directing them to handle the funds properly.


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