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I was employed and gave 3 weeks notice to my employer. I expected to get my final paycheck this Friday. I was notified on Tuesday of this week that my insurance premiums were never deducted from my paychecks during that time and they are planning on collecting it from my final paycheck, making my final paycheck ZERO. I am paid bi-weekly so I will be having 2 weeks pay taken away. With 3 days notice. Is this legal?? I live paycheck to paycheck and without my expected pay, I will not be able to pay my rent or car payment this month. I will be at risk of losing both. A devastating blow. What is my recourse?
Asked on November 7, 2018 under Employment Labor Law, New Hampshire
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
If they are only taking out the correct total amount--i.e. amounts that should have been deducted earlier, but were not due to a mistake or oversight--that is legal: you have to pay your share of the premiums, and they are allowed to recover them from your paychecks. You are not losing any money--if they weren't deducted earlier, you received more money then than you should have, so you should have a surplus from that. Only the timing (collected earlier or all at once) is different, and that does not create any legal claim or action on your part. As stated, they have a right to take your share of premiums out of your paycheck.
The employer is not responsible for you living paycheck to paycheck: they do not cause you to have expenses equaling income, or not savings or reserves. Therefore, they are not liable for any consequences you may suffer due to this.
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