Does an ex-employee have to repay the employer on an overpayment?

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Does an ex-employee have to repay the employer on an overpayment?

I left a place of work on February 28,2018. My ex employer notified me today he overpaid me and wants to collect what he overpaid. Do I have any responsibilty to pay it back? I was paid salary and commissions. He said it was my commissions he overpaid me on.

Asked on April 30, 2018 under Employment Labor Law, Colorado

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, you do have to pay your former employer back. The fact is that an overpayment is money that has not been earned. To keep it would consititute an "unjust enrichment" which is something that the laws disfavors. Accordingly, you must return any monies mistakenly given. And when you think about it, it makes sense. If you had been accidentally underpaid, then your ex-employer would be responsible to make up the shortfall.

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Yes, you do have to pay your former employer back. The fact is that an overpayment is money that has not been earned. To keep it would consititute an "unjust enrichment" which is something that the laws disfavors. Accordingly, you must return any monies mistakenly given. And when you think about it, it makes sense. If you had been accidentally underpaid, then your ex-employer would be responsible to make up the shortfall. 


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