What is my wife’s responsibility if her employer has paid her insurance premiums but forgot to deduct her paycheck for them?

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What is my wife’s responsibility if her employer has paid her insurance premiums but forgot to deduct her paycheck for them?

My wife is currently working for a company that offers health insurance. Over the last 8 months, they

have not been taking her insurance costs out of her paycheck. Her employer is now demanding her to

repay the 8 months of insurance that they did not take from her pay. Is this legal?

Asked on July 27, 2017 under Employment Labor Law, Pennsylvania

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

This comes under the heading of "unjust enrichment". This is where someone receives and accepts money or a benefit that they have not earned, many times due to another's mistake. This is the case here. In such a situation some states allow an employer to automatically deduct from the employee's paycheck for such an error. In other states, the employee must agree to a deduction in writing or agree to pay back/return the money/benefit. If not, then the employer can sue the worker in small claims court and/or terminate that worker. Therefore, your wife needs to repay the 8 months of insurance prremiums that her employer failed to charge her for. At this point, she should try and negotiate a repayment plan with her employer.


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