I have a question... I have a friend who is working for a company who, since they've been bought out, has been having trouble paying vendors and barely making payroll (they bounced checks one pay period), and they couldn't afford the insurance they had. They don't have any currently in place, but they are still taking insurance out of my friend's paycheck... can they do that?

Thanks for any info! :)

No, they can't. Your friend needs to contact the US DOL about a potential ERISA violation. They need to either provide the insurance or refund her the money that has been deducted.

If I may suggest it, though, before she does that she should try to work it out with them internally first.

You're right, cbg. If an agreement can be made to put the insurance in effect, or for the employer to refund the money quickly, that's the best.

If that can't be worked out, an alternative could be to file a claim for unpaid wages through the Texas Workforce Commission. The law in Texas considers a deduction for a legitimate purpose as valid if authorized by the employee, but only if it is applied to its legal, intended purpose. For an employer to deduct or withhold and not pay the bill is a law violation in Texas, as well as an ERISA violation, as cbg points out. The limit is 6 months.

This is what I thought too... I mean, how can you deduct when you're not providing the coverage?
I will let my friend know and let her take it from there!

Thank you so much for your quick reply! :)