Can an employer for charge an employee a claim that wasn’t authorized by an insurance company?

UPDATED: Oct 1, 2022

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Can an employer for charge an employee a claim that wasn’t authorized by an insurance company?

I wasn’t trained properly, understaff and the employer is threatening me to pay a claim on a procedure because the authorization was not completed properly through the patient’s insurance company. Is that legal?

Asked on August 10, 2018 under Employment Labor Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you were negligent or careless in processing the claim and therefore cost your employer money, you are responsible for it--being an employee does not immunize you for liability for mistakes that cost your employer. They cannot simply take the money from your pay without your consent or agreement, however: the law does not let them do that. They could, however:
1) Terminate you, if you will not make good on the loss; and/or
2) Sue you for the money.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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