Employer forgot to deduct insurance premium for 1 year. Can they ask for this payment now?

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Employer forgot to deduct insurance premium for 1 year. Can they ask for this payment now?

Applied for the insurance in Dec 2015 Aflac supplemental insurance. Recently found out they have not been deducting the premium from my paycheck for the past year. They now want me to pay this amount about $1200, in addition to paying the normal premium. I asked at sign up if there is anything I need to do to ensure the appropriate deductions happen from my paycheck. They said it is all taken care of. Really frustrated right now. Can they do this?

Asked on January 9, 2017 under Employment Labor Law, Wisconsin

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, they can ask for the payment now. The law is very clear that if someone does not bill you (or make deductions) at the time, that does not give up their right to the money; if they were entitled to it then (which presumably they were, if you had insurance through them), they are still entitled to it now. If you refuse to agree to a repayment plan or scheme they agree to (e.g. with deductions), they could sue you for the money (and also fire or terminate you).


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