Highland Homes deducted money from subcontractor Benny & Benny's paychecks for insurance coverage but never actually purchased the insurance or clearly explained the deductions. A settlement was reached, but the court rejected it because the settlement included a 90-day expiration date on checks and donated unclaimed funds to charity instead of returning them to workers. Texas law requires that unclaimed money be held indefinitely and returned to the rightful owners—not given away or allowed to expire.
Never accept settlement terms that include expiration dates on payment checks or redirect unclaimed funds to charity—these violate Texas law and the settlement will be overturned
If your employer deducts money from your paycheck for insurance or other purposes, demand clear written documentation of what was deducted, why, and proof it was actually spent on your behalf