I work in a deptartment store in MA. Two weeks ago I received a check in which I was paid for 12 extra hours of Sunday pay (Time and a Half). I imediatly found a manager and informed them and asked what I should do. They told me to come back the next day and speak with the Human Resources person in our store. I did that and I did not receive an answer, I was told that she had to contact our corporate offices and wouldn't be able to do so until Monday and I should come back then. I went back to the store on both Monday and Tuesday and still did not receive an answer as to what I should do.

I have since worked in the store and received my next paycheck (paid Bi-Weekly) without anyone mentioning anything until today. I got a voicemail telling me that I would be required to write a check to the company for an amount less than the full amount of the overpayment.

I've been told by a couple of people that it may not be legal for the company to demand the overpayment to be repaid for different reasons. However I'm still unsure and would like a definate answer before I write a check.

Anyway long story short is it legal in MA for my employer to demand repayment of an overpayment of wages? Taking into account the time since the check.

Thanks

CoreyF

I've been told by a couple of people that it may not be legal for the company to demand the overpayment to be repaid for different reasons. However I'm still unsure and would like a definate answer before I write a check.

Anyway long story short is it legal in MA for my employer to demand repayment of an overpayment of wages? Taking into account the time since the check.

cbg could answer definitively but it is absolutely unbelievable to me that anyone could be overpaid and NOT expect to have to repay the overpayment. My state limits how much we can take back without written consent, but does allow us to take back without consent.

Work with your company. I would be more than willing to consider the overpayment to be a no-interest loan to be repaid pretty quickly.

I don't have a definite answer either, but I could have sworn that there was one state where if the company overpaid... it's the company's problem and they have to eat their losses. I thought it was a state that started with an M.... I either read it on here or another forum...

Sorry, that's all I got. :(

It's not Massachusetts.

The only state I know of in which there is ever a question of an employer having to eat overages is California, and I seem to recall that our CA attorney has stated that even there, an employee is not entitled to take advantage of an inadvertant error.

I'll let Scott or Patty deal with how to handle taxes and so on, but it is NOT illegal for an employer to demand repayment of an overpayment.

Even in those states where there is a time limit under which the employer loses their right to demand repayment after such and such a period of time, that period is measured in years, not weeks.

Thanks everyone for replying so quickly.

@ScottB: I definately assumed I had to pay it back when I first saw it. Thats why I brought it to my Managers attention imediately. However when I was told by a few different people including the HR person at my job that I may be able to keep the money I began to think that I might be keeping the money. I also have no problem repaying them, I just wanted to know for sure.

Also does anyone know how this would affect my W-2 and my taxes at the end of the year if I just write them a check as opposed to them deducting it from my wages?

Thanks

CoreyF

Thanks everyone for replying so quickly.

@ScottB: I definately assumed I had to pay it back when I first saw it. Thats why I brought it to my Managers attention imediately. However when I was told by a few different people including the HR person at my job that I may be able to keep the money I began to think that I might be keeping the money. I also have no problem repaying them, I just wanted to know for sure.

Also does anyone know how this would affect my W-2 and my taxes at the end of the year if I just write them a check as opposed to them deducting it from my wages?

Thanks

CoreyF

Your payroll team will need to record a manual entry to update your wages/taxes so that your W-2 is correct. It's to their advantage to do so since employer taxes were also calculated on the overpayment.

Your payroll team will need to record a manual entry to update your wages/taxes so that your W-2 is correct. It's to their advantage to do so since employer taxes were also calculated on the overpayment.


Assuming your payroll team knows what they're doing. :rolleyes:
The most accurate way of calculating the net overpayment is to calculate the original check the way it should have been, gross to net. Then, compare the each "bucket" to the actual check, and the difference in NET pay is the amount you need to pay back.

Or, would they agree to just deduct the gross overpayment from your next paycheck? The taxes then would, generally speaking, take care of themselves. Honestly, a lot less work for everyone involved and just as correct.

I live in Massachusetts and had a similar issue. I left a company and received 3 checks after I resigned (paid bi-monthly). I thought the first two were supposed to be sent to me, for holding back checks when I started. On the day of the third deposit, my former boss called me and told me I was given 3 extra checks(I was unaware of the third one at this moment) and told him the first 2 weren't extra and that I was owed them. He argued with me, told me he was going to have payroll reverse that days check(which I had no problem with) and that I had to give him a check for the total of the other 2 ($2200.00). I told him if he wanted it, he was going to have to take me to court.

To make a long story short, He took me to court and I won because I fulfulled 2 conditions.

1)Altered Position - Meaning I used the money and could not easily get it back

2)I was innocent in assuming those checks were rightfully mine (which they weren't, come to find out)

Different issue altogether, Chrislegal. The OP KNEW she was overpaid. Plus, it's been over a month since her post, so I'm sure the issue has been resolved by now.