What are an employee’s rights if their insurance has been cancelled do to non-pyment by their employer but their paycheck is still being deducted from?

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What are an employee’s rights if their insurance has been cancelled do to non-pyment by their employer but their paycheck is still being deducted from?

My employer continues to deduct insurance payments even though policy has been cancelled because it did not pay the premium. My employer pays 1/2 and the employees pay 1/2; our paychecks are still having deductions for the insurance payments. They are not paying unemployment taxes. I seriously doubt they are paying our 401K deductions they match up to 3%. What can we do?

Asked on July 28, 2012 under Employment Labor Law, West Virginia

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If an employee's employer is debiting insurance payments for the employees from their respective paychecks but the group insurance policy has lapsed, then the employer has a big problem from a breach of a fiduciary duty standpoint.

If this is your situation, you should consult with an attorney that practices in the area of labor law and/or make an appointment to see a representative with your nearest department of labor over the matter that you have written about.

The employees would have a major labor grievance against the employer over the facts set forth in your question.


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