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Is it legal to deduct medical insurance premiums from Severance pay?

Jersey City, NJ |

My ex-employer offered severance pay (1 lump sum paid out in 2 installments) and to cover medical insurance 1.5 months after my layoff but they deducted the premium from the pay. Is this legal? The agreement stated the company would cover medical in addition to the severance pay.

Attorney Answers 1


  1. You need to consult with an experienced employment lawyer to review the settlement agreement. It may just require the company to pay its part of the premium and leave you responsible for your part, assuming that you contributed something to the premium while employed.

    A response to a question posted on Avvo is not intended to create an attorney-client relationship. It is informational only. Allan E. Richardson, Esq. arichardson@employmentlaw-nj.com Richardson, Galella & Austermuhl 142 Emerson ST., Woodbury, NJ 08096 856-579-7045.

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