If an employer paid me too much am I obligated to pay it back even though it was their mistake and 5 months ago?
Question Details: 5 months ago, my employer direct deposited an extra paycheck after I resigned. They told me that the check was cancelled and the money would be deducted from my account. I did not keep track of the money but I guess they never deducted it. Now, 5 months later they are telling me that I owe them over $900, which I do NOT have. Am I obligated to pay them back? If so, do I have to pay the full amount? Especially since it was their mistake and over 5 months ago! Thanks!
Employment and Labor Law Answers
Unfortunately, you do need to repay the overpayment, even though it was their mistake. Think of it this way--if they had underpaid you, even because it was your fault (putting in hours incorrectly one week, for example), they would need to make good the shortfall once you made them aware of it. In the same way, since you were overpaid, you must return it. It would certainly be reasonable for you to ask to layout a plan for paying for over time, since it was initially the company's error.
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