Can an employer take more money outa paycheck for health insurance than what the insurer states should be withheld?
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Can an employer take more money outa paycheck for health insurance than what the insurer states should be withheld?
I just found out that the owner of the company has been taking more money out of everyone’s paychecks for the past 13 months than what the insurance company has stated should be coming out of the checks. And the owner continues to do so. I confronted him but he is not returning the money to anyone. What should I do? I doubt this is legal to steal from employees.
Asked on November 3, 2010 under Employment Labor Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
The employer cannot take any amounts out of employee paychecks that have not been authorized. If the employer is authorized to take out the employee portion of health insurance premiums, he may only take out that amount. If he takes out more, it is, best case, negligence--i.e. carelessly or incorrectly taking out too much--and he's liable for that amount; it could easily be criminal. (Note that if there were some other benefit that he is taking out for, it *may* be legal--e.g. for a 401(k) or an employee contribution to a pension; for a separate dental plan; possible for group life insurance--but in ALL such cases it should be simple for him to confirm what and how much he's taking out for, and whether the employee is aware of and has consented to the deduction.)
If the owner won't explain what he's doing, you may wish to assume the worst. If it is criminal, the longer you wait, the worse the chance of recovering the money. You should consult with an employment attorney immediately. You and your colleagues may consider jointly retaining one to split or share costs.
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