Automatic Enrollment Implementation
Is automatic enrollment permissible under law?
No
Explanation:
Public employees must provide written authorization for wage deferrals, preventing the implementation of automatic enrollment for voluntary retirement plans.
Relevant State Law – AZ Rev. Stat. 23-352
“Withholding of wages.
No employer may withhold or divert any portion of an employee’s wages unless one of the following applies:
- The employer is required or empowered to do so by state or federal law.
- The employer has prior written authorization from the employee. An employer shall not withhold wages under a written authorization from the employee past the date specified by the employee in a written revocation of the authorization, unless the withholding is to resolve a debt or obligation to the employer or a court orders otherwise.
- There is a reasonable good faith dispute as to the amount of wages due, including the amount of any counterclaim or any claim of debt, reimbursement, recoupment or set-off asserted by the employer against the employee.”