insurance fees deducted from accrued vacation pay

[jmthornton]

What is the name of your state? California

I resigned my job with my effective date the same as my last pay date. I received my final two weeks pay with the typical deductions for taxes, insurance, etc. I also received a check for my accrued unused vacation. Taxes were withheld as appropriate, but my company also withheld another $294.00 in insurance and med premiums. I don't believe that was appropriate. Can someone give me relevant California state law citations? Thanks.

 

[Beth3]

I don't think this has anything to do with State laws. It has to do with your employer's group insurance contract and when your coverage ends.

1. It's possible that payroll neglected to void out the deduction and this is simply a clerical error.
2. Quite a few insurance plans call for coverage ceasing the end of the month in which the individual terminates. In other words, you could leave August 2nd and you'd still have coverage through August 31, in which case making the deductions may well be appropriate.

In either event, your first step should be to contact your employer and ask why the insurance deductions were made. As I said, it could be nothing more than a payroll error which they would be happy to rectify.