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Aug16

Withholding paycheck

The company I work for provides free health insurance for employees after a 60 day waiting period. However, I have problems getting the insurance paperwork from the employees in a timely manner. This creates all sorts of problems when it is time to get them added to the insurance policy. We have tried to make it part of the initial employment application. But of course no one wants to put their personal information on your application. Because we have several different locations, once they fill out the application and the Operations Manager decides to hire them, I will not see most of them again for weeks or months. The insurance company has told me that I should try withholding their paycheck until they turn in the insurance application. Can I do that legally? If not, any suggestions on getting this situation taken care of in a legal way? I am going nuts on my end trying to hurry up and track them down at the last minute. And back dating the policy effective date because it took so long to get the paperwork to the insurance company. Help please!!

No, you may not withhold an employee’s paycheck. The Fair Labor Standards Act is very clear that employers must pay employees for all hours worked on regularly scheduled paydays established by the employer. The solution would be to collect the insurance forms during new hire orientation or whenever you collect other mandatory new hire information, such as I-9 documentation, tax withholding forms, new hire reporting information, safety and other training documentation, etc.

This entry was posted on Saturday, August 16th, 2014 at 2:37 pm and is filed under
Benefits, Compensation, Hiring and Staffing, Human Resources Management.
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