Deduction in pay

What is the name of your state?What is the name of your state?--Nebraska

I have been working at my place of employment for a year and a half. When I was hired, I was given the option to take "no benefits" for a higher wage. This meant that I was not eligible for paid time off, insurance, and other benefits. I was told on December 22nd that starting on January 1st, I would be getting a cut in pay because they just found out that I am required to participate in the "retirement plan." They are cutting my pay by 5 percent which is 87 cents an hour. They said they need to cut my pay because they are contributing 2 percent to my retirement plan and they will contribute up to 3 percent if I contribute. So I have a week and a half to rearrange my budget and figure out what I'm going to do with less take home pay (especially after holiday bills). They also told me that this should have been done since my hire date, so it was their error. If it was their error, why should I take a cut in pay?? Is there any chance of me having a leg to stand on if I fight this??

rachnic75 said:

If it was their error, why should I take a cut in pay??

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Curious, why would you think that you should continue benefiting from someone elses error?? If you sent me $10 per week by mistake and did it for 6 months, should you not be able to 'correct your error' and stop sending me the money?? Of course you could.... and would. This is no different. I can't figure out why people seem to think that errors to their benefit shouldn't be subject to correction or that they somehow have an inherent right to be able to screw others.... as long as it is not done to them!!!

Is there any chance of me having a leg to stand on if I fight this??

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No. As long as your being paid minimum wage.... you have no 'leg to stand on'. And if you don't like it, you can always go find another job.

Is this a governmental employer, such as a state or local government entity or public school? Or is this a private employer?

It is a private corporation.

If this is a 401(k) retirement plan, the employer can have a plan that has "passive enrollment". That means that the employer can automatically enroll you when you become eligible at the minimum allowable contribution rate. However, they also must allow you to opt out at that enrollment time.

I would ask your employer if this is what they are doing and, if so, ask for a copy of the plan SPD (Summary Plan Document) to see the rules of the plan. If all this is true, then they may have violated the rules of the plan by not allowing you to opt out when they should have.

Until I know if this is what they are claiming, I can't advise further.