Accounting Error being taken out of final paychecks

[Gohurdler1]

What is the name of your state?What is the name of your state?I reside in California.
I recently turned in my two weeks notice and told my employer in the notice that I could no longer afford to work in the area. Well later in the week, the company’s bookkeeper/accountant tells me that oh there has been an ongoing error in my paychecks. Instead of my health care premium being taken out, they were actually adding it to my paycheck and that because I am leaving they are going to deduct the $470 out of my final two paychecks.

I called the labor board and I was told they can only deduct amounts that you signed off on so if they take the money you can file a complaint but they could take you to civil court for undue enrichment. I feel this is a financial hardship but can they legally take it out of my final paychecks? I just think it’s strange that it took them this long to figure out they were screwing up and if it’s the outside bookkeeping company that did it shouldn’t they be held liable not me for their negligence?

Should I just bite the bullet and let them do it. It just seems like court wise I would wind up losing if the judge were a prick.

Thanks,

 

[pattytx]

You did authorize the deductions. Somebody made a mistake. Mistakes happen. I guess you didn't look at your paycheck closely enough to notice you were being overpaid? In any case, it is irrelevant whose fault it was; if you had been underpaid, you would have been right there to get your money.

Bite the bullet. The money should have been deducted; you authorized the deduction; a mistake was made; it is now being rectified.

 

[Gohurdler1]

Didn't Authorize large lump sum amounts

Hello,

I may have authorized (cant recall signing something at this time) a deduction but it wasn’t for a lump sum of $235 for two pay periods. I know from looking up the California Labor Boards website that if I had borrowed money from the company and I had agreeded to pay it back in installments that the company could not take the entire remainder from my final pay check. I feel the same principle applies here and that they can only deduct the same amount per pay period that was supposed to have been taken out. This isn’t the first time they have screwed up. When I was first hired they weren’t paying me my car allowance. My boss actually told me about that mix up. It took them like a month or two to figure that one out. So I wasn’t right there bitching saying give me my money because of the missing car allowance.


I called the labor board and I was told they can only deduct amounts that you signed off on so if they take the money you can file a complaint but they could take you to civil court for undue enrichment. Basically should I make a stink about the issue and say the outside company has been doing this for 4 months. I’m not the accountant and it’s not in my job description to do the books. Get your money from the company that screwed up.

 

[pattytx]

OK, I'm going to try again. You authorized the deductions. The deductions were not made. The employer is allowed to make the corrections.

And BTW, California law is specific about accelerating installment payments upon termination on a debt to the employer; that is totally different from an authorization to deduct premiums for health coverage.

But, hey, my over 25 years of experience in payroll doesn't mean I can't make a mistake. I'm just saying that, in my opinion, what are trying to accomplish here? Sounds more like retaliation to me; you're trying to get back for letting you go. The company made a mistake; they're trying to fix it. If you had been underpaid, you would have been all over payroll to fix it. If you want to fight it, go ahead.

 

[Gohurdler1]

LUMP Sum doesnt seem fair

Hello,

They might be able to make the corrections but I believe they can't take lump sums out. Instead of offering a plan they went ahead and made lump sum deductions causing financial hardship.

I decided to leave the position I am not trying to get back at them as you suggested. I turned in my two weeks because I could not afford to be in the area any longer. I told them that was my reason for wanting to leave then a couple of days later they pull this on me. If anyone is being pitty it would be the company not myself.

When I called the California Labor Board I was told if they make the lump sump deductions that I could file a complaint but that the company could take me to small claims and more than likely win. They told me that their past mistake with the gas allowance would show a pattern of negligence in court but wouldnt guarantee me a win.

Shouldn't the external accountant be held liable for negligence since they made the mistake for over four months. Shouldn't that company be forced to pay for the errors instead of myself?

Thanks

 

[withonel]

QUOTE]Shouldn't the external accountant be held liable for negligence since they made the mistake for over four months. Shouldn't that company be forced to pay for the errors instead of myself?[/QUOTE]

If I read your post correctly, the mistake they made was to pay you the amount they should have been deducting for the last 4 months. You received extra money and did not pay as agreed your portion of the insurance premiums. The only person who has gained from their error is you, which is why you are required to “pay for the errors.” I’m sure if you had not been leaving they would have eventually discovered the error on their own and would have been amiable to payments over a longer period of time. As it was, they had no other option but to recover THE COMPANY’S money by deduction from your final pay.

What you don't seem willing to see is that the company took nothing from you, they simply recovered money that was mistakenly overpaid to you. It may not seem fair to you, but I fail to see how your employer has acted illegally.