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Unauthorized Payroll Deduction Alabama

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  • Pattymd
    replied
    Oops, I did search Alabama; I just typed incorrectly.

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  • bhamworker
    replied
    Thanks for the reply, however, we are in Alabama. I am assuming Alabama is one those states without specific laws pertaining to our situation. We have asked for documentation and have been told it is forthcoming. To throw another twist in the situation, the employees are being deducted DOUBLE the amount for 3 months. The owner told the employees he took out the policy three months ago and they must pay for that amount. They will have the option to drop the coverage after the 3 months are paid.

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  • Pattymd
    replied
    More than half the states in the U.S. have specific laws prohibiting the deduction from pay of an employee without the written authorization of the employee (except for those deductions required by law, such as taxes, child support, garnishments, levies, etc.). However, I searched the Labor Code for Arkansas and it appears your state does not have such a law. You can contact the state Dept. of Labor to inquire.

    http://www.ark.org/labor/services/index.html#Contact

    As an aside, however, and although I strongly disagree with this action (I don't even know how they got this by the insurance companies, but that's really not the point), is the cost reasonable? Are there plan documents you can request to see what the terms of the plans are? I work for a large city government, and I WISH they offered STD and LTD options; they don't.

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  • arkansasscribe
    replied
    Before we make payroll deductions at my office the employee has to sign an authorization for the deduction -- medical insurance, STD, etc. Part of our annual audit includes a check through employee files to verify there are signatures from employees authorizing those deductions.

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  • bhamworker
    started a topic Unauthorized Payroll Deduction Alabama

    Unauthorized Payroll Deduction Alabama

    My wife was deducted money for Short and Long Term disability and Life Insurance. The owner decided this was best for the employees, giving no notice this would happen....no infomation on the insurance premiums or who the insurance was with... Is this legal.
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