If a company over pays you and a year goes by before the company realizesits error, doyou have to give it back?

Must we do it in a lump sum?

Asked on July 24, 2010 under Employment Labor Law, Ohio


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your company overpays salary, you are obligated to pay it back but you may be able to repay it over a longer time period so it doesn't impact your budget.  Keep in mind that if you paid in taxes and benefits (think social security) then your repayment will not be the only item that needs to be adjusted.  Talk to your employer about sending adjusted amounts to the agencies and funds to which you pay in. If you choose not to repay the overpayment, what will happen is your employer can choose to sue you and worse, could file a criminal complaint.

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