Am i required to repay an overpayment by workmans comp?

UPDATED: Sep 30, 2022

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Am i required to repay an overpayment by workmans comp?

I was injured on the job, and required shoulder surgery which led to my going on a temporary leave from work. I received workmans compensation until I returned to work a couple of months later. All of this occurred in the months of March through May 2016. The claims company has now notified me they overpaid approximately $1500 that is now due to them. I have had different people tell me different things and I need to know where I stand.

Asked on August 15, 2017 under Insurance Law, Alabama


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

IF you were in fact paid more in error or by accident than you would be entitled to for this situation, you would have to repay the overpay or surplus: the law is very clear that a mistake does not entitle to you keep another's money. You are only entitled to what you are entitled to, so to speak, not what may have been accidently sent to you. (And conversely: if you had been underpaid and the underpayment was discovered, they'd have to pay you the balance due to you.)
If you disagree with their calculation of the amount, ask them to justify it to you--to show you have they came to that number. If after that, you still you don't think you owe them that, you can refuse to pay and let them take legal action against you to recover it; in that legal action, they will have to prove the existence and amount of the overpayment to recover it.

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 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.

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