Indiana  |  Business Law

Legal Question

Asked on: 1/21/05, 11:35 am

Can an Employer Deduct money when I decline coverage

My company was recently purchased by a larger company. We had to switch Life Insurance. The group rate the new company offered was 20.00 per month for a $10,000 life insurance. Employees get a benefit adjustment of $15 per month. So oout of pocket I pay $5.00 per month for $10,000 life insurance.

This is not a very good rate, so I declined all coverages - medical, life, and disabilty, I am currently on my wife's medical insurance. Even had my Human Resource Manager sign it as my witness.

I live in Indiana. I received my first pay stub and the company is deducting the life insurance from my check. My question is, by law, Can a company deduct money from my paycheck for insurance that I have declined or deferred and have written and witness signatures to not carry the insurance? It is beyond the $5 it is costing me now. It is the fact the Company can deduct money I have clearly said I do not want deducted.

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