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Termination of Health Benefits/Salary with no notice California

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  • Termination of Health Benefits/Salary with no notice California

    The new owner of the company I work for terminated health benefits in Feb without notice to employees (we rec'd a letter from the health carrier informing us that our ins. had been cancelled).

    On my paycheck last Friday my pay had been cut by 40% without notice. Apparently I was transferred into the Sales department and will be working for commission now. I told the new owner that I could not support my family on that pay and owner said "We'll work something out" and never did. Is what he is doing legal?

  • #2
    What reason was given for the cancellation of health insurance? Did the employer send a letter to the carrier telling them to cancel, or did the carrier cancel the coverage for non-payment? It makes a difference.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      The employer requested the cancellation. After questioning him about the termination he said that he was looking for another carrier and hoped to have a provider within 2-3 months. HOWEVER- He does not provide insurance to the employees of the other businesses that he owns, so it is doubtful that he will provide insurance for our company even though he says he is going to.

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      • #4
        But, you said the NEW owner. When did he purchase this company?
        Please no private messages about your situation.

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        • #5
          August of 2006

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          • #6
            He is not legally required to provide health insurance coverage, so the cancellation is not a problem. The only question is whether or not CA law requires that you be provided with notice in advance, and that I'm not certain of. Barry?
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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            • #7
              I do know that you must have received advance notice of the decrease in pay BEFORE you worked the hours at the lower rate. You can file a claim for the difference with the Division of Labor Standards Enforcement.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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              • #8
                Did you have money deducted from your check for the health insurance???

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