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Overpayment Issues with Employer Ohio

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  • Overpayment Issues with Employer Ohio

    Long story short: I was overpaid without my knowledge of $1009.

    I was out for surgery and on disability. I was never communicated as to when my disability should start/end and how I would be paid by them. I received my check from my insurance company and have notified them about the issues and am returning the check until everything is cleared. Here's the situation:

    The employer paid me a full paycheck that I wasn't supposed to receive, per our conversation just today. I was initially told that my LOA (no disability) would be covered under a certain time frame and I was eligible to be paid. When I received my paycheck, it was my normal amount and has assumed I was good to go given the e-mail communication. After that period, I was to get paid on my short term disability. Fast forward to today. The employer now says it was an error and fault on their end and the payment was never supposed to happen, even though through e-mail I was told I was eligible for LOA pay during that 2 week time frame.

    They are now requesting one of two options: To pay back the amount overpaid in full or use up ALL of my PTO to cover that pay. Considering I was under the impression given my communication and e-mails, that I was indeed getting paid during that time. During my time out, I wasn't notified that I wasn't eligible for that money and it was their mistake. If I had known this was the case, I would have used my Short Term Disability the entire time to get the 60% pay from my insurer. I have no reason to believe I was being overpaid until the gloomy phone call and hours of communication with HR and directors within HR department.

    What recourse can I take? I am on limited funds and paying the $1009 at this point is simply not possible. They said they would not pay my next pay check OR use up ALL of my PTO time. I wouldn't have accrued anymore PTO until the end of the year if I take this route. I have already had 2 weddings to attend and visit my ill dad, so I would be out of luck doing any of that. From my perspective, I should have clearly been explained the SECOND they realized I wasn't eligible for LOA pay, even though my regional VP said I was through e-mail (which I have saved and printed). It was only until today they gave me the news. If I had known this from the beginning, I would have had disability for that entire duration and everything would have been fine for me and the company.

    Is there absolutely anything I can do, or does the company hold all the power due to their poor communication and incorrect information given to me prior to my surgery and leave? If I had known, I would have had disability from my insurance company and no pay from work. Instead, I won't have pay from my disability for that time period, and I'll even owe the amount back. This is an extremely difficult position for me, as I cannot afford to lose my PTO due to the circumstances given, nor do I have money to pay back considering the entire time I was under the impression from the employer I was going to get paid (FYI - that pay was used for rent and other utility bills). So it's either: pay the money back (and lose the money I should have received from disability if I was given correct info) or use the remainder of my PTO.

    I certainly appreciate the advice and i'm sorry for the long winded paragraphs of text!

    Thanks,

    Richard.
    Last edited by RichardBranson; 07-22-2014, 11:39 AM.

  • #2
    Sorry but a mistake on their part does not entitle you to keep pay for time you were not working. Your choices are to pay it back, or allow them to use your PTO to cover the overpayment. you might work with them to see if they will spread out the repayments or use a combo of repayment and PTO.
    I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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    • #3
      Originally posted by ElleMD View Post
      Sorry but a mistake on their part does not entitle you to keep pay for time you were not working. Your choices are to pay it back, or allow them to use your PTO to cover the overpayment. you might work with them to see if they will spread out the repayments or use a combo of repayment and PTO.
      My problem is their negligence about how they went about this. Had they been honest & known their own policies up front, I would have been able to get Disability for the weeks I was off after surgery. NOW - I get ZERO disability since the time has passed & I owe them money. In recording and e-mail transcripts I was lied to. Well not lied, but misinformed by people who didn't know their own policy. Does that make sense? If they had been upfront from the get-go, I would have been able to have disability that entire time, and wouldn't worry about anything.

      Now - I have no disability funds & I owe them money. I'm sorry -- but that's horrible business practice. I plan on leaving the company and accepting another offer. This is easily the worst HR mishap I've had throughout my career.

      Disability I would have been compensated fine, had I just taken that route from the beginning. They're lack of knowledge (my employer) caused the mistake and now I owe money and can't get disability anymore.

      The fact there is ZERO accountability in the majority of major corporations makes me physically ill.
      Last edited by RichardBranson; 07-22-2014, 04:16 PM.

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      • #4
        No one is saying that the situation isn't difficult or frustrating for you, but this board deals with labor law and there is no law that prohibits the employer from collecting the overpayment from you. Unfortunately, even with the best intentions, people make mistakes, which is why it's incumbent on employees to read the plan documents for any insurance plan (health, dental, disability, etc.) themselves (and I know that's not what you want to hear).
        I am not able to respond to private messages. Thanks!

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        • #5
          I'm not so sure that's only view...but I do think this is a battle,you might win only to lose the war....in following sense ....your state does not require vesting of PTO or even granting of PTO ..so it sort of depends as to if they.can recover PTO by simple termination.

          In general an employer cannot deduct anything from your pay wo your consent or a court order or law.
          in general,an employer cannot properly withhold current pay for current time worked as a means of extorting anything out of you.
          in general an employer cannot retroactively cut your wages...BUT as to wages for time not worked I'm simply not sure about employers right to recovery . I do see your point about reliance upon a written. Commitment that your wages were covered for the two weeks in question.

          I think it may be more of a toss up as a civil clam that some others see...but long run you will get fired for something unless you quit earlier. IF you plan on stayIng aboard I think you need to work out some repayment plan ....

          I think I read your post correctly that this is NOT a question about being double paid.

          Hey for all we know your policy manual says you must use leave first then some place in the manual it reserves the right of management to change anything at any time. IF some manager changed the rules in writing as they apply to you there might be point that management is bound to own changes ..especially in a state which sort of says management must follow its own rules at least until it changes them.

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          • #6
            Repayment of an overpayment of wages is not the same as a deduction from wages. Repayment is allowed as the employee never should have gotten those wages. Anytime there is an overpayment it is due to a mistake. To say that because a mistake was made the employee should get to keep the money is incorrect. Not state has such a law or regulation.

            OP, you might try contacting the disability carrier to see if they will cover you. They very well might with proper documentation.
            I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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