How long dues employer have to pay after mistakes in payroll are found?

UPDATED: Sep 30, 2022

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How long dues employer have to pay after mistakes in payroll are found?

We have insurance deducted weekly. We learned today that insurance was cancelled 3 months ago due to non-payment by our employer. What are our rights?

Asked on December 1, 2016 under Employment Labor Law, Kansas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If your employer took the money out from your check, then they are obligated to provide the insurance you were paying for. If you incurred any medical costs during that time, your employer will have to pay for them itself (e.g. reimburse you); if deductions are still being taken out, they have to reinstate coverage (and again, if they don't, they make themselves liable for any medical costs you incur in the interim); or if you have not had claims, they may have to reimburse you the money taken out of the paychecks, since you did not receive what you were paying for. They can't simply take your money without providing the insurance: doing so is a breach of contract (the agreement by which you work and pay premiums through deductions in exchange for, among other things, insurance coverage), and may also be fraud (lying about what you would get in exchange for working and the deductions) and "conversion" (a form of theft, in which someone misappropriates you money--the deductions--entrusted to it).
A good first step is to contact your state department of labor and also the state department of insurance to report what is going on: one or both agencies may be able to help. Alteranately, you could file a legal action against your employer, for medical cost reimbursement, for reimbursement of your premiums, and/or for a court order that they reinstate insurance.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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