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A.J., Employment Lawyer
Category: Employment Law
Satisfied Customers: 4300
Experience:  Licensed to practice law, I have experience in Employment, Appeals, and Landlord/Tenant Law
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I had a dependent care flexible benefits plan. I was having

Customer Question

I had a dependent care flexible benefits plan for 2015. I was having a child in May, and he would start daycare in September. I flexed $1800, as his daycare expense is $450/month. As flex plans work, that money was deducted from my paycheck starting in January. I was laid off at the end of August and given a severance package through November. There is $900 in my flex account and I am trying to get reimbursed for daycare payments made in September and October. I contacted the 3rd party administrator, and they said since my end date was before the date of my expenses, they couldn't release the funds. They told me to contact my former employer and ask them to change the end date. I contacted them and they said that they would not do that. Is this legal? Do I have to forfeit those funds?
Submitted: 1 year ago.
Category: Employment Law
Expert:  A.J. replied 1 year ago.

Hello, and thank you for using Just Answer. My name is ***** ***** I am happy to answer your question today.

As a general matter, an employer who has pre-paid for a benefit and is then let-go has a right to recover funds paid for any portion of the benefit that can no longer be used. This is true regardless of the employee/employer relationship. Just like if you paid for a service of any kind and then the provider no longer was willing to provide it, the person who has paid the money (you in this case) should be able to recover that money, both under a simple breach of contract theory or under an unjust enrichment theory of law.

Given the amount of money in question, if the employer or service provider is unwilling to reimburse, then a small claims suit may be the appropriate remedy. While there are never any promises of a win, based on the information provided it seems a little absurd that the funds were not reimbursed.

I hope that helps, and let me know if I missed any part of your question, my goal is to make sure that I have answered your question as thoroughly as possible. If your question has been answered, please remember to RATE my answer so that I can receive credit for my work.