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Full deductions out of 1st check when hired mid pay period, Tennessee

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  • Full deductions out of 1st check when hired mid pay period, Tennessee

    I am a new employee through acquisition, which is why I have immediate benefits.

    Acquisition occurred mid pay period. 1st day of work to end of pay period equalled 48 hours. Employer issues pay checks every 2 weeks, with 26 pay periods in the year.

    Employer deducted full pay period's worth of benefits deductions from first check, informing me it was their policy to not pro rate benefits deductions. I know their policy logically falls apart if, say, my first check had me working for only 8 hours. But is this full pay period deduction on a new employee's partial first pay check legal?

    Any resources for further research appreciated. Thank you.

  • #2
    It is not only legal, it is quite common.
    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
      Originally posted by cbg View Post
      It is not only legal, it is quite common.
      Really? Even though it might reduce that first check to $0 or even a negative amount?

      I know it may not be fair, but I did ask if it was legal.

      Thanks!

      Comment


      • #4
        There is no law that requires an employer to pro-rate benefit deductions.
        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.

        Comment


        • #5
          Originally posted by cbg View Post
          There is no law that requires an employer to pro-rate benefit deductions.
          Ok. Thank you.

          Comment


          • #6
            Agreed.
            - Past that, under federal rules this is a "for the benefit of the employee" deduction which can legally take the net pay down to zero, on this and following checks. No employee approval or authorization is required under the federal rules.
            - Now not all states are just-like-fed, although I think your state is. HOWEVER even in very employee friendly states such as CA this sort of action can be legal if done correctly. To my knowledge, this could be legally done in all 50 states if done correctly. In some states that means having the employees sign a form requesting the benefit and approving the deductions as needed. But there is no legal intention in any state that the employer be left holding the bag for employee benefits normally paid by employees.
            "Reality is that which, when you stop believing in it, doesn't go away".
            Philip K. **** (1928-1982)

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            • #7
              Originally posted by DAW View Post
              Agreed.
              - Past that, under federal rules this is a "for the benefit of the employee" deduction which can legally take the net pay down to zero, on this and following checks. No employee approval or authorization is required under the federal rules.
              - Now not all states are just-like-fed, although I think your state is. HOWEVER even in very employee friendly states such as CA this sort of action can be legal if done correctly. To my knowledge, this could be legally done in all 50 states if done correctly. In some states that means having the employees sign a form requesting the benefit and approving the deductions as needed. But there is no legal intention in any state that the employer be left holding the bag for employee benefits normally paid by employees.
              Thank you for this info!

              Comment


              • #8
                As a rule, TN tends to be more employer- than employee-friendly. Sad, but true.

                OP, if it were up to me benefit payments would always have to be pro-rated. But I work in Benefits so I know the laws very well and it's simply not the case. Sorry.
                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.

                Comment

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