If my former employer made a mistake and overpaid my holiday pay, do they still have a right to demand I repay them?

Get Legal Help Today

 Secured with SHA-256 Encryption

If my former employer made a mistake and overpaid my holiday pay, do they still have a right to demand I repay them?

About 4 months ago, I left my position for a new job out of state. My former employer paid me for my holidays that I did not take when I left. Now I have received a phone call and a letter saying they overpaid me by 1 holiday and are demanding that I pay the money back in about 3 weeks or they will take legal action. The person in charge of using my holidays and organizing them was the one who called me and said she made a mistake and overpaid me.

Asked on June 27, 2015 under Employment Labor Law, Tennessee

Answers:

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

Answered 5 years ago | Contributor

Whatever the reason for an overpayment, an employee is responsible for repaying an employer (or former employer) once it is demanded. The fact is that an error does not entitle a worker to keep money that they didn't earn. That would amount to something known as "unjust enrichment" and a court would not tolerate that.

That having been said, an employer may not unilaterally take money out of an employee’s paycheck, even it is their final paycheck. If the employee in question will not voluntarily allow their employer (or ex-employer) to deduct the money from their paycheck or work out a repayment arrangement, then the employer may be forced to sue them to retreive the their money.

 

 


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