What can I do if 6 months ago my employer overpaid me $4,000 and now is withholding my paychecks until it I paid back?

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What can I do if 6 months ago my employer overpaid me $4,000 and now is withholding my paychecks until it I paid back?

We just caught the mistake and since, they dont want to take part of my check, they have taken my entire check and told me they will continue to take my entire check until the funds are repaid. What should I do?

Asked on June 18, 2015 under Employment Labor Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If you were overpaid, you would have to return the money--if you do not, they could sue you for it.

They are not, however, allowed to simply take your paycheck without your consent; if you do not agree to let them take the overpayment out of your check(s), then again, their option is to sue you. You could bring a legal action, or possible complain to the labor department, to get the paycheck(s) back--but would still owe them the money.

However, it may be best to let them do this: if they sue you, you may have to pay additional costs (e.g. certain legal or court costs) and if they win, will have to pay the money all at once or they can take collections actions against you, like garnishing your wages, levying on your bank account, executing against a vehicle, or putting a lien on real estate. Plus you'll have a judgment against you on your credit report/history...and they could legally fire you as well.


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