Is it fraud if my employer does not submit my application for life insurance but continues to takea deduction for itout of my paycheck?

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Is it fraud if my employer does not submit my application for life insurance but continues to takea deduction for itout of my paycheck?

For 2.5 years I have been paying for life insurance policies for myself and my husband through my work but my employer never submitted our applications to the insurance company and so do not actually have the policies.

Asked on February 6, 2012 under Employment Labor Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It is fraud if the employer did this intentionally. Not only can you sue (e.g. to recover the deductions), but it is possible that someone at your employer's could face criminal liability.

It is not fraud if it was some awful, but innocently intended, oversight--but you still would be entitled to sue to recover the money. (Fraud, like other crimes, depends on having a criminal state of mind, or "mens rea," as well as committing an ostensibly criminal act.)

If you believe it was intentional, you may wish to contact the police. You also initiate a lawsuit to recover your funds.


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