If a company overpaid a settlement amount to a previously terminated employee, is the employee under legal obligation to repay?

Get Legal Help Today

 Secured with SHA-256 Encryption

If a company overpaid a settlement amount to a previously terminated employee, is the employee under legal obligation to repay?

The payment was due to an EEOC mediation settlement for wrongful termination. The
amount is over 25K. The terminated employee requested, in writing, a manual
check. The company mailed the check but also inadvertently processed it as a
direct deposit. Basically, it was a double payment – a check and a direct
deposit. Can the company legally force the prior employee to repay?

Asked on January 10, 2019 under Employment Labor Law, Louisiana

Answers:

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

Answered 2 years ago | Contributor

The law disfavors "unjust enrichment" which is what you have here - a double payment mistakenly made. Accordingly, you will have to return the overage to your ex-employer. They can sue you for it if you don't reimburse them. And think about it, has you been accidentally shorted, you would be entitled to the difference since your former employer would be "unjustly enriched" otherwise.


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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption