unpaid premiums

Chas SC · March 2003

We recently terminated an employee and after termination discovered that the employee had not had enough deductions from their payroll over a period of 2 years (due to error in calculation). Can we now demand the terminated employee reimburse us the upaid premiums? And if the employee refuses, what are our options? Is this a criminal case or a civil case?

Don D · March 2003

Neither. It's a case of non-feasance in the Accounting Department. I recommend you not go there. Chalk it up and tighten up the payroll procedure.

Chas SC · March 2003

What if the termed employee was the payroll clerk, himself?? And it does not appear to be an intentional mistake? The formulas for calculating deductions were wrong in the spreadsheet?

Don D · March 2003

I will certainly defer to the lawyers or finance people, but, my gut tells me in that case it may very well be theft.

Theresa Gegen TX · March 2003

You really need to talk to an attorney and go over the facts in detail. You can ask the employee to pay you back, but he will probably say no. Then your alternative is to sue (civil). You need to look very closely at the facts BEFORE you make any move to report this as a crime. If you do not have extremely good evidence of a crime, you can expect the ex-employee to get off, then to sue your company for malicious prosecution.

A lawyer in your state will tell you if there is any civil basis to recover the money. I warn you though, that the costs of suing and collecting may well be higher than the amount of money in dispute.

Good Luck!!

unpaid premiums

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