• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Unauthorized payroll deductions

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

skgoodwin

Junior Member
What is the name of your state (only U.S. law)? Colorado. I just found out that my employer has been taking $40 a month since 2003 for insurance on my children. They are updating their record, and sent me an email asking for the information on my children. I never signed paperwork asking them to be added. My employer has no paperwork to authorize this deduction. My insurance is taken out before taxes. My employer says I cannot be refunded the almost $2800 because the deduction is done before taxes are taken out of my check. Can I get a refund for unauthorized deductions from my paycheck.

Current Occupation: Transportation Scheduler
Which Employer: Current Employer
Length of Employment: 21 years
 


Antigone*

Senior Member
What is the name of your state (only U.S. law)? Colorado. I just found out that my employer has been taking $40 a month since 2003 for insurance on my children. They are updating their record, and sent me an email asking for the information on my children. I never signed paperwork asking them to be added. My employer has no paperwork to authorize this deduction. My insurance is taken out before taxes. My employer says I cannot be refunded the almost $2800 because the deduction is done before taxes are taken out of my check. Can I get a refund for unauthorized deductions from my paycheck.

Current Occupation: Transportation Scheduler
Which Employer: Current Employer
Length of Employment: 21 years
Why did it take you seven years to realize this was happening?
 

tranquility

Senior Member
I agree with AOG, a joke in accounting is the one thing you've got to get right is payroll as you are audited by each person every week.

I don't even know how this would be fixed without a lot of hassle. Even if you sued and won, were the children covered? What are your damages? Since you have a duty to mitigate your damages and you could have mitigated your damages just by looking at your paystub, you didn't really fulfill your duty.

I think the bottom line is you should just forget anything outside of this year. In this year, it would be important to know if insurance was purchased or not. If not, I'd ask for the money. If so, I might ask, but don't think I'd get it.

There may be some technical wage/employee laws broken because of the lack of "authorization", but you're going to report your employer over something which you just notified them of?

Info edit:
Actually, which their policies and procedures just notified you of?
 
Last edited:

swalsh411

Senior Member
Did your children receive the benefit of the insurance coverage whether or not you were using it? I find it hard if not impossible to believe that at no time in the last seven years did you receive a statement, ID card, or something with your kids name on it to indicate that they have coverage.

Refunding the pre-tax deductions is not reasonable. Your employer COULD issue you a taxable payment for that amount but there is no law that would require them to do so.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top