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


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.

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