Can an employer DO this?

Question

Is it legal for an employer to automatically enroll an employee in benefit coverage? 401(k) - yes. But medical coverage? Paperwork was given to a new hire and the employee did not decline or enroll in coverage because he already had medical coverage through his spouse's employer. His employer now takes a deduction from every paycheck for medical and says it is because he did not decline coverage. He was auto-enrolled and cannot drop or change his coverage until open enrollment a year from now. He didn't WANT coverage and is now PAYING FOR coverage he does not use. Paying twice - through his AND his spouses employer. As well, he has to let his other carrier know about the coverage, which potentially causes issues regarding who has to cover the treatment. It's a mess. Is it legal? Does the employee have ANY recourse? Or does he just have to pay for this all year when he never signed anything opting for coverage? If you have any input, please let me know. I appreciate the advice!

Can the employee really "double-dip" and submit claims to both carriers? That would be great if it's legal - since he's paying for it anyway. And yes, it really is a friend, whose manager didn't give him the paperwork to enroll or decline. He asked and asked for it, but never got it. Then he gets his first paycheck and there's the deduction. Now the HR dept is telling him "too bad." I've advised getting another job - obviously the company is poorly managed and unorganized. In the meantime, knowing his rights and what he can/cannot do about the current coverage would be very helpful to him. Just trying to help a friend without many resources for help. I appreciate the advice and suggestions, really, but there's no need to insult my friend or his intelligience. He didn't know the company was not a good place to work until it was too late. Thanks to those actually offering help.

Should this happen to anyone else in CA, I thought I'd share the answer I found:

Per CA Labor Code 224, an employer can only make a payroll deduction in the case of a garnishment, a collective bargaining agreement, or upon the written consent of the employee. They cannot legally take the deduction without written consent. (Paraphrased).

Thanks for all the answers.

Answer 1

Yes, an employer has the right to enroll the employee that failed to complete the enrollment forms and choose to decline. Maybe "your friend" will learn from his mistake of blowing off the forms and not reading the material that was included. During the next open enrollment he can opt out then.

One thing that might help, since he has coverage his spouse may be able to drop the additional coverage at her work. When a spouse that does not have coverage gains coverage by employment, most employers will consider this a qualifying event to make changes.

Answer 2

I am sure he will use the extra coverage. Usually, his spouse's insurance is the primary and will pick up the bill first. I do not know of any company nowadays that pays 100%. So, he can turn it in to his insurance company to pay the rest. Some people call this double dipping, but as a single person, I would say you are lucky. Next time, he should have the common sense to say yes or no.

Answer 3

Did the paperwork provided to the employee say that he would be automatically enrolled if he did not decline?

If so, he has no claim.

If not, he might have a claim.

The key is whether he had notice somewhere on those forms.