How long does a insurance company have to reclaim overpayment of commissions from an employee?

UPDATED: Dec 14, 2011

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How long does a insurance company have to reclaim overpayment of commissions from an employee?

Asked on December 14, 2011 under Employment Labor Law, Kentucky


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The answer varies  by state: each state sets its own statutes of limitation (SOL), or time period to sue. Once it's too late to sue, it's late to force repayment.

If you had a written employment or commission agreement, it would governed by the SOL for written contracts; with no written agreements, probably by the SOL for oral agreements. Again, you'll need to either look up the SOL for your state, or repost your question with state detail for someone here to answer.

Generally though, the SOL for contracts, oral or written, is at least 2 years--and often 4, 6, or more. Until the SOL runs out, the company can try to reclaim the funds.

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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