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Entire Paycheck applied to retroactive insurance premium

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y0ungshel

Junior Member
What is the name of your state (only U.S. law)? Utah

I became eligible for insurance benefits through the company I work for in the beginning of Feb. I had other insurance coverage so I was not in a hurry to enroll and wasn't sure if I was even going to enroll. Near the end of the month I decided to enroll in insurance and on the 23rd of Feb. I enrolled in insurance. March 7th was payday and I didn't receive a paycheck, I am a single mother so I was more than a little upset. While looking into why I didn't get paid, I discovered, my company took my entire paycheck as retroactive insurance premiums from Feb. 2nd. This is insurance that I didn't need as I was already insured, and insurance that I will never use as I can't go back in time to go to the Dr. I didn't give permission for these charges nor was I made aware of them.

Is this legal for them to take my entire paycheck and leave me with nothing? I work in the American version of a sweat shop and don't make a good wage to begin with, and as a result live paycheck to paycheck. Everyone in my company passed the buck as I tried to be reasonable and calm throughout the day, ultimately leaving without a paycheck, headed home to kids who already don't have enough.

What recourse do I have at this point?

Thank you for your time.
 
Last edited:


cbg

I'm a Northern Girl
First of all, you do not get to choose the effective date of your coverage. You have a 30 day window to make your insurance elections, and BY LAW the employer is required to make that coverage effective the first day of your eligibility. If you miss that 30 day window, then BY LAW your employer is not allowed to let you enroll in insurance until you have an IRS-approved qualifying event (marriage, birth, death, divorce, loss of other coverage, and like situations) or until your next open enrollment period (usually held once a year). So your employer was required BY LAW to make the insurance retroactive to February 2. They would have been in violation of the law had they not.

And yes, of course they're going to charge you for that insurance. The insurance company is going to charge THEM for your coverage. Why shouldn't you pay your portion? You don't get your auto insurance premiums back if you don't have an accident, do you?

I guarantee you that at some point you signed, or clicked on a box, or in some way were told and acknowledged (even if you did not read what you were signing or clicking or acknowledging) that you would be charged for the premiums retroactively and gave them permission to do so.

Since this is a deduction for your benefit and since (even if you do not recall doing so) you gave them permission to do so (by applying for the insurance you gave them permission to do so - it's not their fault if you didn't read or understand the rules) then yes, it is legal to take your whole check.
 

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