Josephson v. Ganzel

**Josephson v. Ganzel: Court Rules Against Employer Who Collected Insurance Premiums Without Providing Coverage** This case involved a dispute between an employee and First American Savings and Loan Association over insurance coverage. The employer had been collecting premium payments from the worker for credit life and disability insurance but failed to actually obtain the promised insurance policies for the employee. The employee sued the savings and loan association for negligence and breach of contract. Initially, a trial court ruled against the employee. However, when the case was appealed to a higher court, the decision was overturned. The appellate court found that the employer was legally responsible for negligently failing to secure the insurance coverage while continuing to collect premium payments from the employee. Importantly, the court ruled that the employee didn't need to prove the specific terms of what the insurance policy would have contained to win the case. **What this means for workers:** This ruling protects employees when employers collect money for benefits but fail to provide them. If your employer deducts money from your paycheck for insurance or other benefits, they have a legal duty to actually secure that coverage. You may have grounds for a lawsuit if they collect premiums but don't provide the promised protection.