What to do if I resigned from my ex-employer but due to them not taking me off payroll I was overpaid?

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What to do if I resigned from my ex-employer but due to them not taking me off payroll I was overpaid?

Now, a month later, they are asking for the money back. We are trying to work out an agreement on how much to pay back and I said I could do about $50 a week. They came back and said that would not work and if I can’t pay at least $165 a week then they would just take me to court. I don’t know what to do because if I paid $165 a week that would put me in a bad financial situation.

Asked on December 28, 2012 under Employment Labor Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Your employer has the right to have the overpayment returned; a mistake in not taking you off payroll immediately does not give you any right to keep the money. Furthermore, they have  a right to demand its immediate return in full; they do not have to enter into a payment plan with you, and can freely decided what terms (i.e. what weekly payment) would be acceptable to them. If you do not offer to pay them something they would find acceptable, they have the right to sue you for the money. Even if $165/week would put you in a bad financial position, if there is *any* way you could pay that, you may wish to, to avoid litigation. If you can't, then at least counteroffer with something much closer to $165 and see if they will accept it.


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