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Payback of Overpaid wages

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  • Payback of Overpaid wages

    My husband just recently left a company, to work for a new one. His last day with the former employer was approximately 2 1/2 weeks ago. He received his final paycheck and his cashed out vacation/comp time almost two weeks ago. The former employer called today to say they overpaid him and want us to pay back $1900. Is this legal? Is there not a time frame in which they have to let us know? Meanwhile, he has continued to do work for them even after he resigned? He still "consults" for them, but he hasn't charged them. Does anyone have any suggestions? Is there a time limit in which we have to pay them back?

  • #2
    If they legitimately overpaid him, it is entirely legal for them to request overpayment. Any time frame under which they are legitimately entitled to ask will be FAR longer than two and a half weeks - employers have legally requested the repayment of overpayments after two and a half YEARS.

    I would suggest that he POLITELY ask for an accounting of the overpayment, and, if it is legitimate, see whether or not they will work out a repayment schedule.
    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.


    • #3
      Overpaid Wages

      I have a similar situation. A company overpaid me wages but it was direct deposited. They said they were going to take the over payment out of my account but have not done so and it has been 3 weeks. Is there a time frame on how long they have permission to go into my checking account?


      • #4
        Nobody has permission to "go into your checking account." Although your employer can use "direct deposit" as a method of paying wages into your account, they cannot deduct wages from your checking/savings/banking account. The only persons that can withdraw money from a banking account are yourself and those persons listed on the account with those privleges.


        • #5
          Acc, an employer is permitted to originate a reversing transaction if they are the ones who originated the original one, but only in the amount originally deposited, and only within 5 days of the original settlement date.

          You can close that account and move to another financial institution. However, if you were, in fact, overpaid, the company has every right to demand repayment and file a civil suit if you do not repay.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


          • #6
            Hmmm...for a second there, I did think I was wrong. Thank you for the correction. If I knew absolutely EVERYTHING about law, I guess you wouldn't see me here. I'd probably be in Cabo right now having a drink.


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