Health Premium Deductions Explained ??

Question:?

If an employee in California decides not to return to work after CFRA/FMLA leave (following the exhaustion of Pregnancy Disability Leave), can the employer deduct their portion of the health care premium from their final vacation pay?

Answer: ?

Yes.?In California, the employer can deduct the employee's portion of the health insurance premium from their final paycheck, including any unused vacation pay, under certain conditions. Here are the key considerations:?

1. Agreement or Policy: If an agreement (written or implied) or company policy allows for such deductions, then it is generally permissible. Employers should ensure that employees are aware of these policies.?

2. California Labor Code: According to California Labor Code Section 221, an employer can deduct amounts specifically authorized by the employee in writing for benefits.?

3. Final Paycheck: Per California Labor Code Section 227.3, accrued vacation time must be paid out upon termination of employment. If the employee has authorized deductions for health insurance premiums, these can be deducted from the final paycheck, including any vacation pay.?

4. Voluntary Resignation: If the employee voluntarily resigns while on CFRA baby bonding leave, and there is an agreement or policy in place, the employer may deduct the employee's portion of the health insurance premium from their final vacation pay.

Until the next article, yours truly,

Jacquelyn Thorp, MSHR, SPHR, PHRca Founder and CEO, HR Coach LLC

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Sources:

? California Labor Code Section 221: Prohibits employers from collecting or receiving any part of the wages already paid to employees unless the employee authorizes the deduction.?

? California Labor Code Section 227.3: Requires the payout of accrued vacation time upon termination.?

? California Family Rights Act (CFRA): Outlines the provisions for baby bonding leave.?

You can review these sections in the California Labor Code for more detailed information or the HR Coach LLC California Professional Human Resources textbook.

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