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Reasonable timeline for returning overpaid wages Minnesota

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  • Reasonable timeline for returning overpaid wages Minnesota

    Recently I realized that my previous employer overpaid me. As soon as I became aware of the problem I contacted them myself, knowing full well that eventually they would also come to the same conclusion and want the money back.

    I am not challenging repayment, but the money owed is working out to a fairly substantial amount (no hard figure yet, but probably close to $2000) and I simply do not have it.

    I am wondering how much time I have to repay this amount, legally, from the time that I receive a hard number... and curious if there is any possibility of requesting a payment plan.

    I believe I have been very honest in this matter, and hope to be treated fairly. But I know that sometimes "fair" and "legal" don't really work out to be the same thing.

    Any help you may have would be very appreciated.

  • #2
    Basically, you are in the driver's seat right now, unless the former employer wants to take you to court (which takes time and money).

    A current employer has some leverage. Ex-employers do not (unless you are hoping to get a good reference from them soon).

    A re-payment plan is definitely a viable solution, if you and they can come to an agreement AND if you honor your end of whatever bargain is struck by making the required payments on time.

    Good luck.
    Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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    • #3
      And honestly, the reason you don't have it is.............you spent it ???????
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

      Comment


      • #4
        However, if you are looking for a law that says, you have x number of days/weeks/months to accomplish repayment when your wages are overpaid, there isn't one.
        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.

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        • #5
          Re:

          The money was distributed incorrectly over a period of paychecks because of some misfiled paperwork from HR following my notice. I was told that I would receive three paychecks following my departure. One would be a normal amount, the second would be last hours worked (because of pay delay) and the third would be any remaining PTO that I had coming to me.

          As each of the paychecks was direct deposited, I did not question their amounts (and this was certainly my fault, I was not in the habit of reviewing my paystubs, and I have learned my lesson) as each one got sequentially smaller as expected.

          So I assumed that they were correct, and premium-free (no insurance, 401k, etc). And spent them as I normally would have.

          However, I was wrong. I actually ended up receiving a FOURTH check. And that is when I alerted HR and found out they still showed me as a full time employee, and the reason for the reduced amounts on the checks was due to dock time after my PTO hours had run out.

          I immediately returned that fourth check, and began to look into the others. I asked payroll to do the same and now find myself waiting for them to provide a number to me on what I owe.

          To make it more complicated, these checks were not premium-free as I had been told and now I am concerned about being held responsible for the money that was given to insurance/401k, etc because I was told that my final checks would not be showing those and those amounts add up quickly. Without making allowances for them, the money I owe is almost equal to the money I received --- even though many of those hours/wage were rightfully earned.

          So yes, the money was spent. And I would be willing to repay it over a similar period as it was accrued if they will agree. It is paying the lump sum at once that causes me concern. I do not make a lot of money, am still young, and not too far out of college - and as such my bill to income ratio is pretty high.

          I was not trying to be irresponsible, and I am certainly learning the hard way how important it is to monitor my paycheck stubs. If worst came to worst I would be willing to take out a loan, but if possible a payment plan would certainly be best.
          Last edited by smurfetteMn; 11-09-2006, 10:06 AM.

          Comment


          • #6
            Thank you

            And thank you for your help. I have read your blogs before, but this was my first time posting a thread, and really appreciate your responses. I will do my best to work out an amicable repayment with my company- once numbers are finalized- as it is apparent that it will be left to us to find a solution.

            Thank you again for providing such a valuable resource for dumb kids like me. :-)

            Comment


            • #7
              We're not a "blog". We're perfectly respectable........well, most of us, anyway.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

              Comment

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