Ex-employer states they overpaid me on several occassions and are demanding it back?
I was terminated recently as I am now disabled and unable to return to work. I have no beef about being fired it was supposed to happen. They however are demanding repayment for several errors that payroll made. I am still researching whether or not their claims of overpayment are correct in two instances. The last I suspected was in error at the time it occured so I called HR. The representative told me that because of the coding on the check it was most assuredly mine and that I could "go ahead and spend it". This was on a recorded phone line. I don't think I should be responsible for returning the funds that I was told to "go ahead and spend". I tried to return it. In any case, I live from month to month on disability (private not SS) and there is no way for me to repay anything regardless of the outcome. What can they do to me? Can they touch my IRA account (there's hardly anthing left and I have been using it to live off of)? Can they access my bank account?
Answers:
while it is easy to tell a former employer to pound salt, I would consult an employment specialist such as an attorney who specializes in employment law. Some will do a free initial consultation. If the error was truly an innocent mistake, they may be able to recover their funds. It would be illegal for them to go into your banking accounts. However, it would not be illegal for them to take you to small claims court and I am willing to bet that the court would order you to return the money. If your bank accidentally deposited thousands into your account and you spent it, you would still have to return it to them. Find out the correct LEGAL answer and none of the responses I read seem to be coming from a legal standpoint. I work in the legal field and I believe they may have every legal right to recover their funds. As soon as they told you, you were put on notice. Consult a lawyer, this is my advice to you. Also - even if you cannot repay, if they take you to court and win, they then have a judgment and then have a right to execute that judgment. You still do not pay, they can get something called a levy - to sell your possessions. I believe disability benefits cannot be garnished but you are not untouchable, especially if you have real estate, a car...etc. Also - the court may wonder how you could not notice yourself that you were overpaid, if you actually were. I could be wrong but I say you are liable for repayment because it was money that you were not entitled to.
You are not responsible for pay errors you did not create. They terminated you without the correction. The only thing they could do if you refused is fire you, and it's too late for that. Tell them to pound sand.
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KrazyKyngeKorny(Krazy, not stupid)
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I'd do like previously suggested and tell them to go to hell. It'll probably be the last you ever hear of it.
May I ask if this is a small business or a larger one?
There is no way an employee can be overpaid. Just ask any of the fat cat CEO's of our major corporations with their wages, bonuses, stock options, expense accounts, etc.
They are not legally authorized to ask for money back. the error was theirs not yours. you are fired therefore have no obligations towards them. if you did get your pay check through a checking account direct deposit, I would allert the bank. and explain the situation, however, taking money from your account without your concent is illigal.
This is complicated - contact a Labor Law attorney ASAP - you can access this service through any Legal Aid office in your state and be charged either nothing or sliding scale for their services
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