Can a company legally reverse a direct deposit for payroll due to me from hours I worked?

I was paid last week for my workweek ending the 3rd week of last month. This was done through my direct deposit. I stopped going to work for personal reasons and now they’ve reversed my deposit. Is that legal?

Asked on December 6, 2011 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

They may not reverse a direct deposit if you did all the work for which you were paid, regardless of what you do later. However, if for some reason you were paid for hours or days which you did not in fact work, the employer may be able to reverse the direct deposit as to those hours or days, since you are not entitled to wages unless you actually did the work. If you didn't do the work, paying you was in error, and the employer may seek to correct an error.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.