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Failed to Deduct for benefits premium Florida

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  • DAW
    replied
    Federal DOL is in their wisdom less then clear on this issue. What guidance they have issues are specific to "for the convience of the employer" deductions, and I can find opinion letters specific to that (see below).
    http://www.dol.gov/esa/whd/opinion/F...10_07_FLSA.pdf

    However I have not seen federal DOL formally address "for the convience of the employee" deductions. I would assume that this type of deduction is legal, else any medical deduction would cause the Exempt status to fail. I have also not seen anything from federal DOL that a "catch up" medical deduction is treated any differently legally then a non-catch up deduction. Still, absent formal guidance, the "law" is whatever the judge-du-jour says it is.

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  • cmbeard
    replied
    Thanks DAW/Marketeer... I have to admit I was leaning more toward DAW's thought process... but I'm still a little stuck about whether that can work for exempt ee's. What say ye?

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  • DAW
    replied
    I am going to make the opposite argument, that medical insurance deductions are a "for the convience of the employee" type of deduction, and that the federal MW restriction only applies to "for the convience of the employer" type of deductions. Therefore, under federal rules anyhow, there is no restriction on this type of deduction.

    State deduction law can be different. FL is not my state, but my understanding is FL is mostly a "just like federal state" (other then a higher then federal MW).

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  • cmbeard
    replied
    So, it's not the same as overpayment of wages? (isn't that one of the few instances you can deduct below mw)? and then what about for exempt employees? Assuming they fall under an exemption with a wage requirement, we should not deduct below $455/wk?

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  • Marketeer
    replied
    No, the company cannot drop an employee's pay below minimum wage when recouping the funds. But, yes, the company can recoup the loss. At some point, the employee needs to take some responsibility as well. Employees should always review their paystubs and ask questions if anything seems amiss.

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  • cmbeard
    started a topic Failed to Deduct for benefits premium Florida

    Failed to Deduct for benefits premium Florida

    If a company pays 50% of health benefits premium and employees the other 50% and company failed to deduct the employees' portion for several months before realizing the mistake (but paid the full premuim to the carrier so they had coverage), can the company then recoup the premium however they see fit? i.e. without regard to mw or exempt status (in other words, treat it like an overpayment of wages and take as much as they want)?
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