Can short-term disability pay be withheld?

[ruystymusty]

I'm currently on short-term disability from my company. One of the employee benefits is short-term disability pay--that is, I receive 100% of my pay for up to six months as long as I continue to be disabled. I recently received a call from my employer asking that they have some questions about the use of a company card I was issued several months ago. They have said that they are "pulling" (i.e., holding onto) my next paychecks unless I go in and meet with them and HR about this. I told them that I am currently out of the country recuperating and will not be returning for another month. They said they will hence hold all paychecks until I return. Can they do this?

A friend told me that even if I do owe money to my employer (which I don't, since I've never used the company card, and I've told them so), it is illegal for them to withhold paycheck to cover this "owed money". They will have to get legal authorization (a court judgment, etc.) to recover money they feel an employee owes them--just like they would a vendor or client who owes the company money. They will have to continue to give me my paycheck. Is this true? I think this covers someone who is still working or just left (whether fired or resigned) the company. But does it also cover someone like me who is on short-term disability? Thank you.

 

[Beth3]

Is this short-term disability benefit a salary continuation plan (i.e. you continue to receive paychecks directly from the employer) or do payments come from an insurance carrier?

 

[ruystymusty]

Is this short-term disability benefit a salary continuation plan (i.e. you continue to receive paychecks directly from the employer) or do payments come from an insurance carrier?

I filled out a medical disability form (also filled out by doctor and employer), and my employer submitted it to the insurance company. My paycheck comes from my employer but the employer received the disability funds directly from the insurance company. So, I guess, in effect, the monies used to pay me are from the insurance company but are disbursed by my employer.

 

[Beth3]

Contact your State's Department of Labor. Since this is an insured benefit, I seriously doubt your employer can withhold your benefit checks.

However I also suggest you meet with your employer asap to discuss their concerns about the company credit card. If you don't, you could easily find yourself terminated and on the receiving end of a lawsuit/judgment if they believe you misused the card and owe them money. Having that sort of misconduct record follow you around on future employment references is not going to be a good thing.