Announcement

Collapse
No announcement yet.

Company wants me to pay back an overpayment that was their mistake. Maryland

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

  • Company wants me to pay back an overpayment that was their mistake. Maryland

    My company is trying to make me pay back an overpayment that they made to me on a monthly basis. It showed up on my W-2's which I had to claim and pay taxes on. Now that I'm leaving the company, they want me to pay it back in a lump sum, although they did say they would write off a certain amount. If I refuse to pay it, they said they would take me to court. Is this something that I have to pay back or not?

  • #2
    You absolutely have to pay it back. It's the same as puchasing a TV at Best Buy and realizing that when you got home your credit card was charged $100 too much. I'm sure you'd go back to the store and get your refund. The same process applies here.

    Mistakes happen. It's only human nature. DOL understands this and allows employers to collect overpayments from employees (or former employees). The employer is under no obligation to make payment arrangements. They may request repayment in full. Failure to comply may result in additional collection efforts (that may appear on your credit report) or civil complaint against you to recoup monies.

    Regarding your tax filing documents:
    If the overpayment was in a prior tax year, the employer should issue a W-2C with corrected wages and taxes. Once you receive this, I'd suggest speaking with your tax advisor. You will need to file amended returns for Federal, State and Local/City (if applicable).

    Comment


    • #3
      When I talked to DOL they stated that is the employers error and I wouldn't have to pay it back unless I signed a paper stating so. But they also said Maryland laws may say otherwise. Maryland Department of Labor told me to fill out a claim form and I can't find a Lawyer that can give me a direct answer.

      Comment


      • #4
        Originally posted by jhrockers
        When I talked to DOL they stated that is the employers error and I wouldn't have to pay it back unless I signed a paper stating so. But they also said Maryland laws may say otherwise. Maryland Department of Labor told me to fill out a claim form and I can't find a Lawyer that can give me a direct answer.
        That would be in reference to if the payback was via payroll deduction. If the error is legitimate, the employer may request reimbursement. If you are unwilling to make arrangements, they can send it to collections or file in civil court to recoup monies.

        Comment


        • #5
          As a point of reference, here is a link to MD labor code: http://www.dllr.state.md.us/labor/wagepay/.

          Pattymd, what are your thoughts on this matter?

          Comment


          • #6
            You're right on, robb71.

            OP, which DOL did you call? Federal or state? Deductions from pay under MD law are deductions from NET pay, not recovering an overpayment from gross pay. Will they let you pay it via personal check? That would be the cleanest way to do it. In any case, they cannot recover the overpayment to the extent that they reduce your gross pay to less than minimum wage, and they can't recover from overtime pay.

            Did you not realize you were being overpaid? Frankly, I don't have a lot of sympathy for employees who are overpaid, especially for a continuing period, say nothing, then are surprised when the employer wants to correct the error.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

            Comment


            • #7
              What Patty said.
              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.

              Comment


              • #8
                Originally posted by Pattymd View Post
                Did you not realize you were being overpaid? Frankly, I don\'t have a lot of sympathy for employees who are overpaid, especially for a continuing period, say nothing, then are surprised when the employer wants to correct the error.
                i\'d like to thank all of your opinions ahead of time. this is a great web site and has a lot of great information.

                but i hope you have some sympathy for me.

                i worked under a contract for 9 months and, due to a lot of issues in the company and a lot of personnel issues with the management (almost illegal harassment, bias, sexism and tasks not allowed under contract), was not told about my worker status. a few months later, they asked when i was reporting back to work as if i knew that my contract would be renewed several months later. but i had already moved out of state.

                i was forced to resign. i don\'t know if they have processed my resignation. it is a very big and poorly managed company. but i have still being getting paid as if i signed the new contract. and i did not sign a new contract at all.

                i do not trust this company as they have been poor with me before. i expect to pay them back, but i want to know the law first. what is the time limit to collect (i read 90 days in places like washington state but 3 years in other states), is it criminal or civil, and what should i do if they try to sue?

                i have read in england that if you used the money already as a \'mistake of fact\' that it can be tough to collect. i don\'t want to be sued for fraud as i have no new job and many bills to pay and this mistake is not mine.

                thank you for all your help. thank you.

                Comment


                • #9
                  Unfortunately the labor regs are quite vague on what's defined as "reasonable" as a point to recover overpayments. Each company may have different methods and timeframes to verify and review data. The laws in the UK are not applicable here. What would matter are the Federal laws and the laws in the state where you worked. It's my understanding that the state of Maryland allows firms to collect overpayments from employees and former employees. If you REFUSE to reimburse directly, this would become a civil matter and may be refered to a collection agency. It MAY impact your credit should these measures be employed. The best thing to do is return the overpayments to your former employer and inform them of the problem. This way you do not end up trying to pay back when the money's gone.

                  Comment


                  • #10
                    Did I read that correctly? You were paid for 9 months and you weren't doing any work?
                    -----------------------------------------
                    98% of the population is asleep. The other 2% are staring around in complete amazement, abject terror, or both.

                    Comment


                    • #11
                      AL HR:

                      My interpretation of that statement is the contract was for 9 months. The company "assumed" the contract was renewed and continued paying after its expiration. I think this is a case of a "phantom" employee.

                      Comment


                      • #12
                        I assure you that MD does not care if you spent the money yet or not. You either repay it, or you can be sued or sent to collections if you do not. Why would you not just send the checks back when you received them improperly? If it was direct deposited you should have been contacting them to get it straightened out.

                        MD does not have a grace period for you to repay the funds. My advice is t stop looking for ways to prolong or prevent the inevitable and just send them the money you owe.
                        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.

                        Comment


                        • #13
                          What happens in England has nothing to do with what happens in Maryland. English law does not apply anywhere in the US.
                          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

                          Working...
                          X