My employer deposited my money into the wrong account

UPDATED: Oct 1, 2022

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My employer deposited my money into the wrong account

My direct deposited paycheck was put into an old bank account that I owed money on so now I’m out my paycheck due to an error made by my employer. They did not have my permission to deposit into the account that they did. Is there anyway I can be compensated?

Asked on September 2, 2017 under Employment Labor Law, Indiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

The issue is, who made the mistake? If you had provided the old bank account information to them and never later instructed them to not use but to use a different bank account instead (and provided the information for that account) it is your error and you have no recourse against them. If you can prove, however, that you had given the employer the correct instructions and information, then they are liable for not following your instructions and you could sue them for the money if they will not voluntarily pay it again. The issue is who was at fault.

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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