Deduction for benefits

Shadowfax

[font size="1" color="#FF0000"]LAST EDITED ON 05-17-04 AT 01:34PM (CST)[/font][br][br]I'm not sure whether to post here or in wage and hour - I'll start here. Ee is off on work comp. Ee fails topay Er for 4 months of ee share of health insurance. Ee is back limited duty past three weeks, acknowledges he owes, but rejects er suggestions of ways to pay for it. Er asks ee to sign payroll deduction, to begin first day back full time, at $10 a week (bill is over $800). Ee refuses to sign and says it is illegal to ask him too. Is It? Anyone have any thoughts?
I forgot to add that this co is neither FMLA nor Cobra qualified.

LindaS

If the company is neither FMLA or COBRA qualified, why would the ER maintain the benefits for this long? Just curious...

In any event, I would draft a letter to the EE explaining that their insurance premiums are past due by $XXX amount and that, beginning with ____ paycheck you will be deducting $XXX amount from their paycheck for insurance benefits. I have done this in the past, no problems. I usually "double deduct" the amounts to get them caught up.

If the employee balks, have them show you the regulations showing it is illegal.

The other option is taking them to small claims court for the money, a judgement against them will show on their credit report for seven years. Maybe them getting the notice to appear in court will allow those moths in his wallet to loosen.

Don D

Knowing nothing about MI work comp laws, I would only say that in MS, I would terminate the employee if he would not bring his premiums up to date by whatever manner you suggested. This is a sign of things to come.

marc

I would add that it is illegal to deduct anything from the EEs check (except for the mandated Federal and State Income taxes and FICA and Medi, without their express written authorization. This has come up on several threads with even the Legal Beagles confirming.

This EE has apparently authorized the base deduction but is hanging his hat on not paying the extra. You can go to a small claims court to get a judgement and turn it into a wage garnishment. I know it is a hassle, but it is a proper legal route to take.

lnelson

Did the ee sign anything stating he would pay the benefits while on his work comp? If not, is it part of your company policies and does the ee have a copy of the policy and do you have acknowledgement of receipt for the policies?

What I do not understand is if you are not under FMLA & COBRA why didn't you send a letter to ee stating, due to non-payment your benefits will be terminated, after he was late with the payment by 15 or so days? Or come up with a payment plan that he signs as agreed.

Pork

SHADOWFAX: we do not give them the ee an option, we simply figure out the endebtedness and recalulate the medical insurance premium payment amount based on a reasonable schedule, adjust the premium payment and it is automatically taken out. We notify the employee of the change in cost to his/her premium and the impact on his/her weekly check. It is not against the law to have his/her premium to be higher than other employees. As soon as the debt is recovered the ee's pay check will reflect the reduced premium.

I have one out going on about a year, I notified the ee's attorney of the expense and expect the attorney to discuss the endebtedness with his client and tell us how she will pay the debt. It could be apart of any settlement, but it is on the table and must be covered by the ee. The debt will be addressed and small claims court and garnishment just might be our next litigation move. Otherwise, other employees are made to absorb the debt and that is not right!

PORK

Shadowfax

Thanks for your thoughts. To answer a few questions: this guy was the owners fair haired boy, and he (the owner) was just being a generous, helpful employer to an injured employee. No, he didn't sign that he would pay for his insurance while on comp, but of course we had no paycheck from which to deduct. Owner felt sorry for him and just carried him. Now, find out, work comp carrier was paying ee extra to cover cosst of his share of benefit, which ee pocketed. My vote was fire him for fraud on the work comp carrier. Owner just wanted to bring him back, have him authorize additional deduct to pay us and then ee would have to deal with the wc carrier. Well, when he wouldn't sign tghe decuct for a measley $10, that got owners attention and now he's ready to pull the plug. I just couldn't think of any reason why under these circumstances it would be any problem asking for a deduct slip - but it wouldn't have been the first time I was surprised by some stupid regs either. Thanks for you assistance. I'd guess he'll be gone before day is out. And as Don observed, this would have been just the beginning of the trouble. Hope everyone has a wonderful day.

safety

I believe I would still go down the small claims path after the termination. Word gets around and if you let this go others may follow the lead and try to take you to the bank. I would also contact your WC carrier and let them know what has transpired with the extra he was receiving to cover insurance costs.

ritaanz

Can you go to your medical insurance carrier and cancel his coverage back to the first month he failed to pay? Our carrier allows us to go back 3 months.

Remember to offer him COBRA.