Announcement

Collapse
No announcement yet.

overpaid wages to teminated employees

Collapse
This topic is closed.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • overpaid wages to teminated employees

    Does a terminated employee in California have to repay wages overpaid in error?
    If so, where can I find backup to this response?
    Thank you

  • #2
    Of course an employee in any state has to repay wages paid in error.

    How about you showing me something that says you're allowed to keep money you haven't earned and are not owed as long as it's someone else's mistake?
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

    Comment


    • #3
      overpaid wages to terminated employees.

      I'm not the employee.
      I'm trying to find out the state law regarding overpayments for terminated employees. I'm looking for backup to put in our procedures.
      Thank you

      Comment


      • #4
        Sorry, I realized after the fact from your screen name that you must be the employer. We get that question from the employee a lot, and it irritates me how many people want "proof" of what should be an ethical, legal, and moral no-brainer. Keeping money that you did not earn and are not owed that you received in error is called stealing.

        I doubt that you will find a statute that spells out that an overpaid employee must pay it back. And since you're in CA, I believe there is a prohibition against your making payroll deductions. However, there is case law (though I'd have to do a search to find it off hand) giving you permission to require the employee to repay you, or for you to sue him if he does not. I don't have the case law handy, though; someone else might.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

        Comment


        • #5
          overpaid wages to terminated employees

          Thank you for getting back to me.
          This is truly a question that no one seems to be able to answer as we're looking for backup.
          I agree it is a matter of ethics but sometimes that is not important to the employee.

          Comment


          • #6
            You might want to do a search on this forum as I believe the case law that would give you the back up was discussed earlier.

            But you might want to use the same technique I did when I thought you were the employee; if someone asks you for proof that they have to repay an overpayment, tell them it's not up to you to provide proof that they have to pay - it's up to them to provide proof that they do not.
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

            Comment


            • #7
              Or, since the employee is already gone, you can sue.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

              Comment


              • #8
                Short answer (as previously stated) is that you have to sue to recovery the money. I can give you the case law on why you need to sue. The following is from the CA DLSE manual.

                11.1.3 Deductions From Wages. The courts in California and the United States Supreme Court have held that deductions from wages in effect allow an employer a self-help remedy which is illegal. (Sniadach v. Family Finance, 395 U.S. 337 (1969) California law was changed in 1970 to conform the law to the holding in Sniadach. (See C.C.P. § 487.020(c)) See also Randone v. Appellate Department (1971) 5 Cal.3d 536 and CSEA v. State of California (1988) 198 Cal.App.3d 374; 243 Cal.Rptr. 602.

                11.2 Employer May Not Collect Or Receive Wages Paid Employee. Labor Code § 221 prohibits an employer from recovering wages paid. This provision prohibits an employer from receiving from an employee any wage paid by the employer to the employee either by deduction or recovery after payment of the wage. “It shall be unlawful for any employer to collect or receive from an employee any part of wages theretofore paid by said employer to said employee.”
                "Reality is that which, when you stop believing in it, doesn't go away".
                Philip K. **** (1928-1982)

                Comment

                Working...
                X