Legal Question in Employment Law in California

I think I'm being cheated out of money by my employer. After I've worked 2080 hours for the year, they stop paying Heath and Welfare benefits and the money comes directly out of my paycheck. For some employees, this means that an extra $800 is being taken out of their checks...right around Christmas. I'm not being payed for 2080 worth of Health and Welfare benefits as my contract states, I'm only being paid for 1800 hours because I'm forced to work mandatory overtime. Can they do this? The contract states:

"All employees receive health and welfare benefits to $3.50 per hour for each hour worked up to 40 hours for the period beginning Nov 1, 2010. The Health and Welfare costs are calculated using an average costing method and are limited to forty hours per week, and 2080 hours per year."

The problem is, usually by the beginning/middle of November, I've worked over 2080 hours. I haven't been paid for Health and Welfare for 2080 hours though.

I should be getting: $7280 for welfare benefits for the year. Instead, I'm getting $6300. I'm an hourly employee and am frequently forced to work overtime so I work BEYOND 2080 hours a year. The employees who do not work overtime, get close to the full amount for their health and welfare.

This doesn't even make sense to me. They are doing this to ALL employees who work overtime and have been doing it to us for years. When HR is queried, they say they don't have to pay you for Health and Welfare benefits after you've worked 2080 hours, "read the contract". I could understand if they were paying 2080 hours and nothing beyond, that makes sense. But for them to stop paying because you've worked over 2080 hours? Someone PLEASE help me understand how this is legal and whom I need to contact. This is NOT a small company and is impacting likely hundreds of people.


Asked on 2/24/11, 4:38 pm

1 Answer from Attorneys

Terry A. Nelson Nelson & Lawless

Any claim of unpaid compensation or benefits can be brought at the local Labor Commissioner.

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Answered on 2/25/11, 11:27 am


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