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Collecting overpayment of wages from ex-employee California

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  • Collecting overpayment of wages from ex-employee California

    After we terminated an employee, we accidently paid $5k to him in the next pay cycle. The employee is refusing to return the overpayment. Based on the posts here, the law is clearly on our side to collect. All of our employees sign a doc stating that disputes must be settled via arbitration. I would like to know the costs of pursuing this matter. Basically, is it worth the time and money to collect the overpayment?

  • #2
    For 5K, yes it is worth it. I'd check and see if you really must arbitrate this one or if you can file in small claims court. You might send the employee a letter that states if he does not pay it back by a certain date you will pursue legal action to reclaim it. Even better if the letter comes from the CEO or legal counsel. It'll cost you less than $1 and might scare this guy into doing the right thing.
    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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