Can Employer collect an overpayment on there terms?
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Can Employer collect an overpayment on there terms?
My employer overpayed me a large sum of
money and told me I only have until the end of
the year to pay it back . This will be a deduction
of 1300 a pay period until the end of the year .
I asked them if they could extend the payment
period and get it down to 650 a pay period.
Do I have any power in this situation?
Asked on May 1, 2019 under Employment Labor Law, New Hampshire
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
You don't have to agree to their terms BUT if you don't, they could sue you for all the money and if they win, get a judgement requiring you to pay it back in one lump sum. When you are overpaid, you have no right to keep the money; that includes, among other things, not having any right to keep it for any longer than the employer is willing to allow--you cannot dictate how long you will take to return the employer's money to it. Giving you around 7 or 8 months to repay is more considerate than they need to be--they are allowed to insist on immediate repayment of the funds to which you are not entitled or sue.
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