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Insurance deductions Texas

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  • Insurance deductions Texas

    Is there a law concerning notifying employee's of an increase in insurance premium deductions from payroll checks? My Daughter was just informed that the amount coming out would be more two days ago for this weeks check.

  • #2
    Most states have laws determining when the insurance carrier must give the employer notice of the increase, but I'm not sure about any laws regarding the employer notifying the employees. The problem is that once the employer is notified by the carrier of an increase, only then can the employer start the negotiation process, trying to either amend the plan or bargain on the rates to keep the prices down. I've seen it happen that the rates are only finalized a matter of days before the change goes into effect.

    In my state, which is not Texas, the insurance carrier only has to give the employer 30 days notice of an increase (or decrease). Naturally I don't argue with decreases, but there have been times when it's taken me 28 of the 30 days to either bargain the initial increase down, or make the amendments to the plan that will keep the increase reasonable, or both.

    Your state insurance commission should be able to tell you if your state has any laws about employee notification.
    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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