Am I required to repay overpaid vacation time before I receive my severance package?
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Am I required to repay overpaid vacation time before I receive my severance package?
I worked for a company who was bought out by another and decided not to relocate, so i was
offered a severance package. I’ve signed all the paperwork for the package and am awaiting
payment and in the meantime was contacted by the person responsible for payroll asking for
repayment of wages. She told me i’d been paid twice the vacation time and wanted to know how
and when i’d be paying it back. she will not tell me when i will receive my severance pay, even after I told her the money would have to come from the package. When I asked her where to send the money, she wants it addressed to her directly. How do I honestly go about getting my severance package and settling any debts with the company?
Asked on May 3, 2019 under Employment Labor Law, Arizona
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
The two claims are separate: your right to severance as per the package you agreed to is independent of their right to be repaid for a vacaction double or overpayment (and they do have the right to that repayment). They cannot hold the severance for the vacation repayment, though you and they could agree voluntarily to offset one against the other: e.g. that the severance will be reduced by the amount of overpayment you must return. This, by the way, would be the easiest and most efficient way to handle this situation.
If they won't pay your severance within the time frame indicated in the severance agreement, you could sue (e.g. in small claims court) for it. Before doing so, something seems wrong here: why does the payroll person want company money "addressed to her personally"--she may be trying to pocket your money personally. You should contact more senior management to discuss the situation--they may be unaware of what. their person is doing.
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