Pre-paid Legal Enrollment Deterrent?

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Kestrel
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Pre-paid Legal Enrollment Deterrent?

Postby Kestrel » Fri Feb 08, 2013 7:37 pm

I took over the bookkeeping for a small business, and noticed that several employees had optional payroll deductions for AFLAC and Legal Shield (Pre-paid Legal). Apparently the employer had allowed a salesman to pitch the employees, and agreed to make payroll deductions for the buyers. A quick google search reveals that there are a lot of AFLAC salesmen who also pitch PPL, although I have no idea whether these were bundled here.

Now I know that people have the right to sign stupid contracts and buy overpriced worthless products. I'm just bothered that financially unsophisticated people were taken advantage of through the cooperation of an unsuspecting employer.

Any thoughts about what I might say when renewal season rolls around?
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Re: Pre-paid Legal Enrollment Deterrent?

Postby The Observer » Fri Feb 08, 2013 10:00 pm

Kestrel wrote:Any thoughts about what I might say when renewal season rolls around?


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Re: Pre-paid Legal Enrollment Deterrent?

Postby wserra » Fri Feb 08, 2013 10:34 pm

Kestrel wrote:Apparently the employer had allowed a salesman to pitch the employees, and agreed to make payroll deductions for the buyers.


Hopefully that's all it was, and the employer isn't getting a schmeer. You might point out that that would be bad.
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Re: Pre-paid Legal Enrollment Deterrent?

Postby Kestrel » Fri Feb 08, 2013 11:44 pm

wserra wrote:Hopefully that's all it was, and the employer isn't getting a schmeer. You might point out that that would be bad.

I haven't seen a kickback. There probably isn't one, but I'll keep my eye out for it. Thanks.

Does anyone know of a website which does a legitimate analysis of the real "value" (or lack thereof) of PPL / Legal Shield from they buyer's standpoint? That's the sort of information I'd like to make available to the employees.

Most of what I know about this company comes from the seller's standpoint, having seen firsthand a certain MLM-crazed friend who spewed all the squirrely selling tactics PPL sent him, then got burned when he didn't maintain "production" quotas.
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Re: Pre-paid Legal Enrollment Deterrent?

Postby webhick » Fri Feb 08, 2013 11:52 pm

In some states, it's illegal to deduct anything but taxes and the standard insurance/retirement/garnishment stuff - even if the employee agrees to it.

Call up the labor board and check to see if this kind of deduction is even legal.
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Re: Pre-paid Legal Enrollment Deterrent?

Postby Kestrel » Sat Feb 09, 2013 12:25 am

webhick wrote:In some states, it's illegal to deduct anything but taxes and the standard insurance/retirement/garnishment stuff - even if the employee agrees to it.

Call up the labor board and check to see if this kind of deduction is even legal.

Good idea. I hadn't thought of that.

The company is in Florida. The only thing I found on a web-search (DOL is closed at this hour) was an unofficial website with the comment, "Florida does not have any laws regarding what deductions may or may not be taken from an employees paycheck or whether an employee must provide written consent prior to any deduction."
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Re: Pre-paid Legal Enrollment Deterrent?

Postby webhick » Sat Feb 09, 2013 3:57 am

Well, it appears that in my state it is legal so long as the employee has given written consent, deductions are documented properly and the employer receives no benefit.

The employer may not get a visible kickback, but may get a discount off his own fees for each employee he has signed up. In which case, it would violate my state's laws. I never thought that Florida would be less documented than frickin' NH.
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